10. Deferred contract costs

Deferred contract costs consist of contractually recoverable direct set-up costs relating to long-term service contracts in progress. These costs include direct and incremental costs incurred prior to the commencement of us providing contracted services to our customers. Deferred contract costs consist of the following (in thousands):

Deferred contract cost amortization expense for the years ended September 30, 2012, 2011 and 2010 was $2.0 million, $1.7 million and $1.7 million respectively.