Balance sheet components

12 Months Ended

Sep. 30, 2019

Balance Sheet Related Disclosures [Abstract]

Property and equipment

Property and equipment, at cost, consists of the following (in thousands):


	As of September 30,
	2019		2018
Land	$	1,738	$	1,738
Building and improvements	12,044		12,044
Office furniture and equipment	246,671		203,512
Leasehold improvements	69,183		55,918
	329,636		273,212
Less: Accumulated depreciation and amortization	(230,047)		(195,668)
Total property and equipment, net	$	99,589	$	77,544

Depreciation expense for the years ended September 30, 2019, 2018 and 2017 was $45.2 million, $40.7 million and $45.2 million, respectively.

Capitalized software

Capitalized software consists of the following (in thousands):


	As of September 30,
	2019		2018
Capitalized software	$	103,643	$	94,803
Less: Accumulated amortization	(71,274)		(72,374)
Total capitalized software, net	$	32,369	$	22,429

Amortization expense for the years ended September 30, 2019, 2018 and 2017 was $7.2 million, $11.2 million and $10.6 million, respectively. Most of this amortization was recorded within our "cost of revenue" on our consolidated statements of operations.

Deferred contract costs

For many contracts, we incur significant incremental costs at the beginning of an arrangement. Typically, these costs relate to the establishment of infrastructure which we utilize to satisfy our performance obligations with the contract. We report these costs as deferred contract costs and amortize them on a straight-line basis over the shorter of the useful economic life of the asset or the anticipated term of the contract.

Deferred contract costs consist of the following (in thousands):


	As of September 30,
	2019		2018
Deferred contract costs	$	43,140	$	29,941
Less: Accumulated amortization	(24,219)		(15,561)
Total deferred contract costs, net	$	18,921	$	14,380

Since September 30, 2018, we have deferred $14.5 million of costs. During the year ended September 30, 2019, we amortized $9.9 million of deferred contract costs. This amortization was recorded within our "cost of revenue" on our consolidated statements of operations.

The totals above include $3.7 million of costs which were deferred and subsequently written off during the year ended September 30, 2019. These costs related to a contract within our U.S. Health and Human Services Segment which is no longer able to recover the deferred costs. This expense was recorded within "cost of revenue" on our consolidated statements of operations.