McKESSON CORPORATION FINANCIAL REVIEW (Continued) 46 Financing activities for 2007 include our March 2007 issuance of $500 million of 5.25% notes due 2013 and $500 million of 5.70% notes due 2017.
Net proceeds of $997 million from the issuance of the notes, after offering expenses, were used, together with cash on hand, to repay $1.0 billion of short-term borrowings then outstanding under the interim facility we entered into in connection with the acquisition of Per-Se.
Financing activities for 2007 also include $1.0 billion of cash paid for stock repurchases and $72 million of dividends paid, partially offset by $399 million of cash receipts from common stock issuances.
The Company’s Board of Directors (the “Board”) has authorized the repurchase of McKesson’s common stock from time to time in open market or private transactions, which is described in more detail in Financial Note 19, “Stockholders’ Equity,” to the accompanying consolidated financial statements.
During 2009, 2008 and 2007, the Company repurchased $484 million, $1,686 million and $1,001 million of its common stock at average prices of $50.52, $59.48 and $51.46.
As of March 31, 2009, $830 million remained available for future repurchases under the outstanding April 2008 Board approved share repurchase plan.
In July 2008, the Board authorized the retirement of shares of the Company’s common stock that may be repurchased from time to time pursuant to its stock repurchase program.
During the second quarter of 2009, all of the 4 million repurchased shares, which we purchased for $204 million, were formally retired by the Company.
The retired shares constitute authorized but unissued shares.
We elected to allocate any excess of share repurchase price over par value between additional paid-in capital and retained earnings.
As such, $165 million was recorded as a decrease to retained earnings.
In April 2008, the Board approved a change in the Company’s dividend policy by increasing the amount of the Company’s quarterly dividend from six cents to twelve cents per share, applicable to ensuing quarterly dividend declarations until further action by the Board.
The Company anticipates that it will continue to pay quarterly cash dividends in the future.
However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company’s future earnings, financial condition, capital requirements and other factors.
Although we believe that our operating cash flow, financial assets, current access to capital and credit markets, as evidenced by our most recent debt issuance in February 2009, including our existing credit and sales facilities, will give us the ability to meet our financing needs for the foreseeable future, there can be no assurance that continued or increased volatility and disruption in the global capital and credit markets will not impair our liquidity or increase our costs of borrowing.
Selected Measures of Liquidity and Capital Resources:
## Table 0 ##
(1) Ratio is computed as total debt divided by total debt and stockholders’ equity.
(2) Ratio is computed as total debt, net of cash and cash equivalents (“net debt”), divided by net debt and stockholders’ equity (“net capital employed”).
(3) Ratio is computed as net income, divided by a five-quarter average of stockholders’ equity.
CONSOLIDATED INCOME STATEMENT REVIEW Our Consolidated Income Statement is presented in Item 8 of this Report.
Net income for 2008 was $882 million and for 2007 was $1.467 billion.
Total revenue for 2008 increased 7% compared with 2007.
We created positive operating leverage in the year-to-date comparison as total noninterest expense increased 3% in the comparison.
NET INTEREST INCOME AND NET INTEREST MARGIN
## Table 1 ##
Changes in net interest income and margin result from the interaction of the volume and composition of interest-earning assets and related yields, interest-bearing liabilities and related rates paid, and noninterest-bearing sources of funding.
See Statistical Information – Analysis Of Year-To-Year Changes In Net Interest (Unaudited) Income And Average Consolidated Balance Sheet and Net Interest Analysis in Item 8 of this Report for additional information.
The 31% increase in net interest income for 2008 compared with 2007 was favorably impacted by the $16.5 billion, or 17%, increase in average interest-earning assets and a decrease in funding costs.
The 2008 net interest margin was positively affected by declining rates paid on deposits and borrowings compared with the prior year.
The reasons driving the higher interest-earning assets in these comparisons are further discussed in the Balance Sheet Highlights portion of the Executive Summary section of this Item 7.
The net interest margin was 3.37% for 2008 and 3.00% for 2007.
The following factors impacted the comparison: ?
A decrease in the rate paid on interest-bearing liabilities of 140 basis points.
The rate paid on interest-bearing deposits, the single largest component, decreased 123 basis points.  ?
These factors were partially offset by a 77 basis point decrease in the yield on interest-earning assets.
The yield on loans, the single largest component, decreased 109 basis points.  ?
In addition, the impact of noninterest-bearing sources of funding decreased 26 basis points due to lower interest rates and a lower proportion of noninterestbearing sources of funding to interest-earning assets.
For comparing to the broader market, during 2008 the average federal funds rate was 1.94% compared with 5.03% for 2007.
We expect our full-year 2009 net interest income to benefit from the impact of interest accretion of discounts resulting from purchase accounting marks and deposit pricing alignment related to our National City acquisition.
We also currently expect our 2009 net interest margin to improve on a year-over-year basis.
NONINTEREST INCOME Summary Noninterest income was $3.367 billion for 2008 and $3.790 billion for 2007.
Noninterest income for 2008 included the following: ?
Gains of $246 million related to the mark-to-market adjustment on our BlackRock LTIP shares obligation, ?
Losses related to our commercial mortgage loans held for sale of $197 million, net of hedges, ?
Impairment and other losses related to alternative investments of $179 million, ?
Income from Hilliard Lyons totaling $164 million, including the first quarter gain of $114 million from the sale of this business, ?
Net securities losses of $206 million, ?
A first quarter gain of $95 million related to the redemption of a portion of our Visa Class B common shares related to Visa’s March 2008 initial public offering, ?
A third quarter $61 million reversal of a legal contingency reserve established in connection with an acquisition due to a settlement, ?
Trading losses of $55 million, ?
A $35 million impairment charge on commercial mortgage servicing rights, and ?
Equity management losses of $24 million.
Noninterest income for 2007 included the following: ?
The impact of $82 million gain recognized in connection with our transfer of BlackRock shares to satisfy a portion of PNC’s LTIP obligation and a $209 million net loss on our LTIP shares obligation, ?
Income from Hilliard Lyons totaling $227 million, ?
Trading income of $104 million, ?
Equity management gains of $102 million, and ?
Gains related to our commercial mortgage loans held for sale of $3 million, net of hedges.
Apart from the impact of these items, noninterest income increased $16 million in 2008 compared with 2007.
Additional analysis Fund servicing fees increased $69 million in 2008, to $904 million, compared with $835 million in 2007.
The impact of the December 2007 acquisition of Albridge Solutions Inc.  (“Albridge Solutions”) and growth in Global Investment Servicing’s offshore operations were the primary drivers of this increase.
Global Investment Servicing provided fund accounting/ administration services for $839 billion of net fund investment assets and provided custody services for $379 billion of fund
## Table 2 ##
(a) Includes assets and liabilities for which we have elected the fair value option.
See the Consolidated Balance Sheet and Note 6 Fair Value in Item 8 of this Report for additional information.
(b) Includes balances held with the Federal Reserve Bank of Cleveland of $28.3 billion, $25.1 billion, $30.0 billion, $31.4 billion and $11.7 billion as of December 31, 2017, 2016, 2015, 2014 and 2013, respectively.
(c) Includes our equity interest in BlackRock.
(d) Includes long-term borrowings of $43.1 billion, $38.3 billion, $43.6 billion, $41.5 billion and $27.6 billion for 2017, 2016, 2015, 2014 and 2013, respectively.
Borrowings which mature more than one year after December 31, 2017 are considered to be long-term.
(e) As a result of certain investment advisory services performed by one of our registered investment advisors, certain assets were previously reported as both discretionary client assets under management and nondiscretionary client assets under administration.
Effective for the first quarter of 2017, these amounts are only reported as discretionary assets under management.
Prior periods were adjusted to remove amounts previously included in nondiscretionary assets under administration of approximately $9 billion, $6 billion, $5 billion and $4 billion at December 31, 2016, 2015, 2014 and 2013, respectively.
(f) Calculated as taxable-equivalent net interest income divided by average earning assets.
To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments.
This adjustment is not permitted under GAAP in the Consolidated Income Statement.
For additional information, see Reconciliation of Taxable-Equivalent Net Interest Income Statistical Information (Unaudited) in Item 8 of this Report.
(g) The full year 2017 results benefited from the new federal tax legislation.
Certain tax legislation amounts are considered reasonable estimates as of December 31, 2017.
See the Critical Accounting Estimates and Judgments section in Item 7 of this Report for additional details.
(h) Calculated using the regulatory capital methodology applicable to us during each period presented.
(i) See capital ratios discussion in the Supervision and Regulation section of Item 1 and in the Liquidity and Capital Management portion of the Risk Management section in Item 7 of this Report for additional discussion on these capital ratios.
(j) See additional information on the pro forma ratios, Transitional Basel III ratios and the Basel I ratios in the Statistical Information (Unaudited) section in Item 8 of this Report.
(k) The pro forma ratios for all periods presented were calculated under the standardized approach.
The 2013 ratio has not been updated to reflect the first quarter 2014 adoption of ASU 2014-01 related to investments in low income housing tax credits.

<table><tr><td></td><td colspan="3"> March 31,</td></tr><tr><td><i>(Dollars in millions)</i></td><td> 2009</td><td> 2008</td><td> 2007</td></tr><tr><td>Cash and cash equivalents</td><td>$2,109</td><td>$1,362</td><td>$1,954</td></tr><tr><td>Working capital</td><td>3,065</td><td>2,438</td><td>2,730</td></tr><tr><td>Debt, net of cash and cash equivalents</td><td>403</td><td>435</td><td>4</td></tr><tr><td>Debt to capital ratio<sup>-1</sup></td><td>28.9%</td><td>22.7%</td><td>23.8%</td></tr><tr><td>Net debt to net capital employed<sup>-2</sup></td><td>6.1%</td><td>6.6%</td><td>0.1%</td></tr><tr><td>Return on stockholders’ equity<sup>-3</sup></td><td>13.2%</td><td>15.6%</td><td>15.2%</td></tr></table>
<table><tr><td>Year ended December 31  Dollars in millions</td><td>2008</td><td>2007</td></tr><tr><td>Net interest income</td><td>$3,823</td><td>$2,915</td></tr><tr><td>Net interest margin</td><td>3.37%</td><td>3.00%</td></tr></table>
<table><tr><td></td><td colspan="5">At or for the year ended December 31</td></tr><tr><td>Dollars in millions, except as noted</td><td>2017</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Balance Sheet Highlights</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Assets</td><td>$380,768</td><td>$366,380</td><td>$358,493</td><td>$345,072</td><td>$320,192</td></tr><tr><td>Loans (a)</td><td>$220,458</td><td>$210,833</td><td>$206,696</td><td>$204,817</td><td>$195,613</td></tr><tr><td>Allowance for loan and lease losses</td><td>$2,611</td><td>$2,589</td><td>$2,727</td><td>$3,331</td><td>$3,609</td></tr><tr><td>Interest-earning deposits with banks (b)</td><td>$28,595</td><td>$25,711</td><td>$30,546</td><td>$31,779</td><td>$12,135</td></tr><tr><td>Investment securities</td><td>$76,131</td><td>$75,947</td><td>$70,528</td><td>$55,823</td><td>$60,294</td></tr><tr><td>Loans held for sale (a)</td><td>$2,655</td><td>$2,504</td><td>$1,540</td><td>$2,262</td><td>$2,255</td></tr><tr><td>Equity investments (c)</td><td>$11,392</td><td>$10,728</td><td>$10,587</td><td>$10,728</td><td>$10,560</td></tr><tr><td>Mortgage servicing rights</td><td>$1,832</td><td>$1,758</td><td>$1,589</td><td>$1,351</td><td>$1,636</td></tr><tr><td>Goodwill</td><td>$9,173</td><td>$9,103</td><td>$9,103</td><td>$9,103</td><td>$9,074</td></tr><tr><td>Other assets (a)</td><td>$27,894</td><td>$27,506</td><td>$26,566</td><td>$28,180</td><td>$28,191</td></tr><tr><td>Noninterest-bearing deposits</td><td>$79,864</td><td>$80,230</td><td>$79,435</td><td>$73,479</td><td>$70,306</td></tr><tr><td>Interest-bearing deposits</td><td>$185,189</td><td>$176,934</td><td>$169,567</td><td>$158,755</td><td>$150,625</td></tr><tr><td>Total deposits</td><td>$265,053</td><td>$257,164</td><td>$249,002</td><td>$232,234</td><td>$220,931</td></tr><tr><td>Borrowed funds (a) (d)</td><td>$59,088</td><td>$52,706</td><td>$54,532</td><td>$56,768</td><td>$46,105</td></tr><tr><td>Total shareholders’ equity</td><td>$47,513</td><td>$45,699</td><td>$44,710</td><td>$44,551</td><td>$42,334</td></tr><tr><td>Common shareholders’ equity</td><td>$43,530</td><td>$41,723</td><td>$41,258</td><td>$40,605</td><td>$38,392</td></tr><tr><td>Accumulated other comprehensive income (loss)</td><td>$-148</td><td>$-265</td><td>$130</td><td>$503</td><td>$436</td></tr><tr><td>Period-end common shares outstanding (millions)</td><td>473</td><td>485</td><td>504</td><td>523</td><td>533</td></tr><tr><td>Client Investment Assets(billions)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Discretionary client assets under management</td><td>$151</td><td>$137</td><td>$134</td><td>$135</td><td>$127</td></tr><tr><td>Nondiscretionary client assets under administration</td><td>131</td><td>120</td><td>119</td><td>123</td><td>116</td></tr><tr><td>Total client assets under administration (e)</td><td>282</td><td>257</td><td>253</td><td>258</td><td>243</td></tr><tr><td>Brokerage account client assets</td><td>49</td><td>44</td><td>43</td><td>43</td><td>41</td></tr><tr><td>Total</td><td>$331</td><td>$301</td><td>$296</td><td>$301</td><td>$284</td></tr><tr><td>Selected Ratios</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net interest margin (f)</td><td>2.87%</td><td>2.73%</td><td>2.74%</td><td>3.08%</td><td>3.57%</td></tr><tr><td>Noninterest income to total revenue</td><td>44%</td><td>45%</td><td>46%</td><td>45%</td><td>43%</td></tr><tr><td>Efficiency</td><td>64%</td><td>62%</td><td>62%</td><td>62%</td><td>60%</td></tr><tr><td>Return on</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average common shareholders’ equity (g)</td><td>12.09%</td><td>8.85%</td><td>9.50%</td><td>9.91%</td><td>10.85%</td></tr><tr><td>Average assets (g)</td><td>1.45%</td><td>1.10%</td><td>1.17%</td><td>1.28%</td><td>1.38%</td></tr><tr><td>Loans to deposits</td><td>83%</td><td>82%</td><td>83%</td><td>88%</td><td>89%</td></tr><tr><td>Dividend payout</td><td>24.7%</td><td>29.0%</td><td>27.0%</td><td>25.3%</td><td>23.1%</td></tr><tr><td>Transitional Basel III common equity Tier 1 capital ratio (h) (i) (j)</td><td>10.4%</td><td>10.6%</td><td>10.6%</td><td>10.9%</td><td>N/A</td></tr><tr><td>Transitional Basel III Tier 1 risk-based capital ratio (h) (i) (j)</td><td>11.6%</td><td>12.0%</td><td>12.0%</td><td>12.6%</td><td>N/A</td></tr><tr><td>Pro forma fully phased-in Basel III common equity Tier 1 capital ratio(Non-GAAP) (i) (j) (k)</td><td>9.8%</td><td>10.0%</td><td>10.0%</td><td>10.0%</td><td>9.4%</td></tr><tr><td>Basel I Tier 1 common capital ratio (j)</td><td>N/A</td><td>N/A</td><td>N/A</td><td>N/A</td><td>10.5%</td></tr><tr><td>Basel I Tier 1 risk-based capital ratio (j)</td><td>N/A</td><td>N/A</td><td>N/A</td><td>N/A</td><td>12.4%</td></tr><tr><td>Common shareholders’ equity to total assets</td><td>11.4%</td><td>11.4%</td><td>11.5%</td><td>11.8%</td><td>12.0%</td></tr><tr><td>Average common shareholders’ equity to average assets</td><td>11.3%</td><td>11.5%</td><td>11.5%</td><td>12.1%</td><td>11.9%</td></tr><tr><td>Selected Statistics</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Employees</td><td>52,906</td><td>52,006</td><td>52,513</td><td>53,587</td><td>54,433</td></tr><tr><td>Retail Banking branches</td><td>2,459</td><td>2,520</td><td>2,616</td><td>2,697</td><td>2,714</td></tr><tr><td>ATMs</td><td>9,051</td><td>9,024</td><td>8,956</td><td>8,605</td><td>7,445</td></tr></table>

Question: what was the average net interest margin for 2008 and for 2007?
Answer: 3.185