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Navistar International reported lower quarterly earnings on Wednesday, pulled down by employee termination costs and a contraction in military sales.
The charge includes losses on the sale of three manufacturing plants, write-offs, employee termination costs and the liquidation of inventories.
Merger and termination costs for its bid to combine with Deutsche Börse, the operator of the Frankfurt Stock Exchange, also dragged down its results.
NASA has now sped up payment of $80 million to the company and then added $83 million to the contract to help Lockheed Martin manage the termination costs.
ATK is still holding to the position that NASA is responsible for termination costs, and it has not aside money or prepared layoffs.
When asked about their termination costs this spring, however, ATK and Lockheed Martin said they expected NASA to pay for them, as had been past practice.
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This may dull the immediate pain, but it only adds to taxpayers' burden by piling an interest rate onto the termination cost.
A spokesman for Nour USA, Robert R. Hoopes Jr., said the company had protested the Army's cancellation of the contract, saying it could cost $20 million to $30 million in termination cost to the company and its suppliers.
The terms call for Detroit to get out of the swaps for as little as 75 percent of their true termination cost — about $250 million, instead of $344 million at current interest rates.
This is extended to differential games [1, p 223]: a game is time-invariant if time does not appear explicitly as a variable in dynamics equation, running and terminal costs, and termination condition.
"I am also aware that CIA will still be required to pay termination settlement costs, which we are still estimating".
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