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 United Kingdom (UK). As a result, the Company closed 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, 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 eliminated 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 by the end of 2018. As a result of these efforts, as shown in the table below, GSE expects to record a total restructuring charge of approximately $2.1 million, primarily related to workforce reductions, contract termination costs and asset write-offs due to the exit activities. As of September 30, 2018, we had recorded restructuring charges totaling $1.9 million ($1.2 million during the nine months ended September 30, 2018). In addition to the restructuring costs in the table below, the Company has an estimated $1.6 million of cumulative translation adjustments that will be charged against net income (loss) and an estimated $1.0 million of tax benefits that will be realized upon liquidation of these foreign entities. GSE expects to recognize the remaining restructuring costs, currency translation adjustments and tax benefits by the end of 2018.

The following tables summarize the restructuring costs and restructuring liabilities at September 30, 2018:

(in thousands)

	September 30, 2018
	Total Expected Costs		Costs Incurred to Date		Expected Costs Remaining
Employee termination benefits	$	824	$	824	$	-
Lease termination costs		591		591		-
Assets write-offs/impairment		222		222		-
Other restructuring costs		432		273		159
Total Restructuring costs	$	2,069	$	1,910	$	159

The restructuring costs related to our Performance Improvement Solutions segment and are included in the consolidated statements 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		359			591			227			1,177
Payments		(632	)		(613	)		(260	)		(1,505	)
Currency translation and other adjustments		(11	)		71			-			60
Balance as of September 30, 2018	$	181		$	49		$	-		$	230

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