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Douglas Harper's Etymology Dictionary
time-out

also time out, 1896 in sports, 1939 in other occupations; from 1980 as the name of a strategy in child discipline; from time + out.

Wiktionary
time-out

n. 1 (context sports English) A short break in the action of a sport, for substitution, consultation, etc. 2 A break from a tense, heated or stressful situation (often enforced, sometimes as a disciplinary measure); a cooling-off period. 3 (context communication English) The intentional ending of an incomplete task after a time limit considered long enough for it to end normally.

WordNet
time-out

n. a brief suspension of play; "each team has two time-outs left"

Wikipedia
Time-out (parenting)

Time-out (also known as'' social exclusion'') is a form of behavioural modification that involves temporarily separating a child from an environment where unacceptable behavior occurred. The goal is to remove the child from an enriched, enjoyable environment, and therefore lead to functional punishment or extinction of the offending behavior. It is an educational and parenting technique recommended by most pediatricians and developmental psychologists as an effective form of child discipline. Often a corner (hence the common term corner time) or a similar space where the child is to stand or sit during time-outs is designated. This form of discipline is especially popular in western cultures.

In the UK, the punishment is often known as the naughty chair or naughty step. This term became popular in the US thanks to two reality TV series, Supernanny and Nanny 911.

Time-out (sport)

In sports, a time-out is a halt in the play. This allows the coaches of either team to communicate with the team, e.g., to determine strategy or inspire morale, as well as to stop the game clock. Time-outs are usually called by coaches or players, although for some sports, TV timeouts are called to allow media to air commercial breaks. Teams usually call timeouts at strategically important points in the match, or to avoid the team being called for a delay of game-type violation, such as the five-second rule in basketball.

Usage examples of "time-out".

I said "sure" and then took a brief time-out to let Cordia know where I was going.

The initial time-out value is three seconds, so retries are attempted at 3, 6, 12, 24, and 48 seconds.