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



($ in millions)	September 30, 2025		December 31, 2024
Property, plant and equipment	$	22,091	$	19,318
Less: Accumulated depreciation		(4,746)		(3,640)
Property, plant and equipment, net	$	17,345	$	15,678

As of September 30, 2025, our materials and supplies were $324 million, as compared to $431 million as of December 31, 2024. Components of this include fiber, network electronics, and customer premises equipment.

Frontier has 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 nine months ended September 30, 2025, our capital expenditures were $2,421 million. During the nine months ended September 30, 2025, our vendor financing payments were $16 million. As of September 30, 2025, there was $809 million, $13 million, and $55 million in “Accounts payable and accrued liabilities”, “Other current liabilities” and “Other liabilities”, respectively, for payables associated with capital expenditures. As of September 30, 2025 the company had no outstanding vendor financing payables associated with capital expenditures. For the nine months ended September 30, 2025, we had capitalized interest of $49 million.

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


	For the three months ended ‎September 30,				For the nine months ended ‎September 30,
($ in millions)	2025		2024		2025		2024

Depreciation expense	$	390	$	330	$	1,131	$	955