Property and Equipment

12 Months Ended

Dec. 31, 2019

Property and Equipment

Property and Equipment

4. Property and Equipment

Property and equipment consisted of the following (in thousands):

	December 31,		December 31,
	2019		2018
Computers and other related equipment	$	11,333	$	10,859
Purchased and internally developed software		34,008		29,758
Furniture and fixtures		1,514		1,470
Leasehold improvements		6,795		6,795
Machinery and related equipment		569		581
		54,219		49,463
Less accumulated depreciation		(40,422)		(36,337)
Property and equipment, net	$	13,797	$	13,126

At December 31, 2019 and 2018, total software under finance lease obligations was $3.8 million and was fully amortized. Amortization expense for assets under finance lease obligations was not material for the years ended December 31, 2019 and 2018.

Depreciation expense for the periods shown is classified as follows (in thousands):

	Year ended December 31,
	2019		2018
Product costs	$	1,604	$	961
Service costs		3,809		3,059
Sales and marketing		30		28
Product development		59		62
General and administrative		1,256		2,089
Total depreciation	$	6,758	$	6,199

As a result of the shortening our estimated useful lives for certain assets, we recorded accelerated depreciation expense of less than $0.1 million for each of the years ended December 31, 2019 and 2018.