5. Restructuring Activities

On December 27, 2017, the board of GSE Systems, Inc. approved an international restructuring plan to streamline and optimize the Company's global operations. Beginning in December 2017, GSE has been in the process of consolidating its engineering services and R&D activities to Maryland and ceasing an unprofitable non-core business in the U.K. As a result, the Company will be closing its offices in Nyköping, Sweden; Chennai, India; and Stockton-on-Tees, UK. These actions are designed to improve Company productivity by eliminating duplicate employee functions and increasing GSE's focus on its core business, improving efficiency and maintaining the full range of engineering capabilities while reducing costs and organizational complexity.

GSE expects to eliminate approximately 40 positions due to these changes, primarily in Europe and India, and will undertake other cost-savings measures. The restructuring plan is expected to be completed in 2018. As a result of these efforts, GSE expects to record a restructuring charge of approximately $1.8 million, primarily related to workforce reductions, contract termination costs and asset write-offs due to the exit activities. As of March 31, 2018, we had recorded a restructuring charge of $1.7 million. The amounts to be transferred from cumulative translation adjustments and included in determining net income for the period, in which the liquidation of these foreign entities are completed, are not included in the estimated total amount of restructuring charge. We expect to record the remaining charges and the translation adjustments by the end of 2018.

The following tables summarize the restructuring costs and restructuring liabilities:

(in thousands)

	March 31, 2018
	Total Expected Costs		Costs Incurred to Date		Expected Costs Remaining
Employee termination benefits	$	736	$	729	$	7
Lease termination costs		555		519		36
Assets write-offs/impairment		222		222		-
Other restructuring costs		272		180		92
Total Restructuring costs	$	1,785	$	1,650	$	135

The restructuring costs related to our Performance Improvement Solutions segment and are included in the consolidated statement of operations within the "Restructuring charges" line caption.

	Employee termination benefits		Lease termination costs		Other Restructuring costs		Total
Balance as of January 1, 2018	$	465	$	-	$	33	$	498
Accruals		264		519		134		917
Payments		(406)		-		(5)		(411)
Currency translation and other adjustments		1		119		-		120
Balance as of March 31, 2018	$	324	$	638	$	162	$	1,124

The accrued employee termination benefits were included in "accrued compensation" line, and the accrued lease termination costs and other restructuring costs were included in "accrued expenses" in the consolidated balance sheets.