Property, plant and equipment, net at June 30, 2025 and December 31, 2024 are as follows:



($ in millions)	June 30, 2025		December 31, 2024
Property, plant and equipment	$	21,151	$	19,318
Less: Accumulated depreciation		(4,366)		(3,640)
Property, plant and equipment, net	$	16,785	$	15,678

As of June 30, 2025, our materials and supplies were $374 million, as compared to $431 million as of December 31, 2024. Components of this include fiber, network electronics, and customer premises equipment.

Beginning in the second half of 2023, Frontier negotiated payment terms with certain of our vendors, (referred to as vendor financing), which are excluded from capital expenditures and reported as financing activities on the statement of cash flows. During the six months ended June 30, 2025, our capital expenditures were $1,602 million. During the six months ended June 30, 2025, our vendor financing payments were $16 million. As of June 30, 2025, there was $732 million, $13 million, and $45 million in “Accounts payable and accrued liabilities”, “Other current liabilities” and “Other liabilities”, respectively, for payables associated with capital expenditures. As of June 30, 2025 the company had no outstanding vendor financing payables associated with capital expenditures. For the six months ended June 30, 2025, we had capitalized interest of $31 million.

Depreciation expense is principally based on the composite group method. Depreciation expense was as follows:


	For the three months ended ‎June 30,				For the six months ended ‎June 30,
($ in millions)	2025		2024		2025		2024

Depreciation expense	$	376	$	317	$	741	$	625