General Android question - Pics in Contacts..how?

[spyder560]

So I'm wondering how pics of my contacts are showing up in my Contacts list? I know they're not facebook pics b/c I don't have facebook. The only thing I can think of is under Gmail - My Settings, there's a My picture setting. Is that where these are pulling from? I tried adding my own and it doesn't show on anyone else's Contacts list like it does on mine.
How are they doing this?