Employee Severance and Termination Costs

12 Months Ended

Dec. 31, 2012

Employee Severance and Termination Costs

23. Employee Severance and Termination Costs

Consistent with the Company’s strategy to continuously improve its cost structure and right-size its businesses, the Company has completed employment reduction actions across several of its businesses to reduce both direct and indirect costs, including overhead and general and administrative costs. As a result of these initiatives, the Company recorded a total of $23 million in employee severance and other termination costs for approximately 1,600 employees during the year ended December 31, 2012, $20 million in similar costs for approximately 1,200 employees during the year ended December 31, 2011 and $17 million in similar costs for approximately 700 employees for the year ended December 31, 2010. Employee severance and other termination costs are reported within cost of sales on the consolidated statement of operations. The remaining balance to be paid for these initiatives was $9 million at December 31, 2012 and $11 million at December 31, 2011. Information on employee severance and other termination costs incurred by reportable segment for the years ended December 31, 2012, 2011 and 2010 is presented in the table below.


	Year Ended December 31,
	2012		2011		2010
	(in millions)
Electronic Systems	$	17	$	15	$	11
C³ISR		4		1		3
AM&M		1		3		3
NSS		1		1		—

Consolidated	$	23	$	20		17

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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