The world’s largest military contractor will pay a record $2.5 million to a former avionics electrician who claims he was called the “N-word,” threatened with death and laid off after he reported racism at Lockheed Martin Corp.

The settlement between Lockheed and Charles Daniels, filed in U.S. District Court for the District of Hawaii on Wednesday, was the largest settlement with an individual in a racial discrimination case handled by the federal Equal Employment Opportunity Commission.