Android 6 Where's the Favorites list in phone dialer is gone?

I just got my Galaxy Note 7 running Android 6 from Verizon and after a day I noticed I the favoritescontacts are missing from the phone dialer.  Now the only two choices are Recent and Contacts.

BUT When I selecta contacts guess what is showing at the top of the contacts list? Before the letter A it says Favorites and there are all my favorites. :-)