The 2.125% Notes consisted of the following: | | | | | | September 24,
2016 | | (In millions) | Principal amounts: | | Principal | $ | 700 |
| Unamortized debt discount(1) | (273 | ) | Unamortized debt issuance costs | (12 | ) | Net carrying amount | $ | 415 |
| Carrying amount of the equity component(2) | $ | 266 |
|
| | (1) | Included in the consolidated balance sheets within Long-term debt, net and amortized over the remaining life of the notes on the straight-line basis as it approximates the effective interest rate method. |
| | (2) | Included in the consolidated balance sheets within additional paid-in capital, net of $8 million in equity issuance costs. |
The following table sets forth total interest expense recognized related to the 2.125% Notes for the three months ended September 24, 2016:
| | | | | | September 24,
2016 | | (In millions) | Contractual interest expense | $ | — |
| Interest cost related to amortization of debt issuance costs | — |
| Interest cost related to amortization of the debt discount | $ | 1 |
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