-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LnjNuqMFpm0ASkZcAUlsm29eo3Tnf+WPTn/Td2XSKCKLwLBMsidq4LGV2bxOd71K Ts2qjyMDLnDyzbz06UW8nw== 0000912057-96-013182.txt : 19960627 0000912057-96-013182.hdr.sgml : 19960627 ACCESSION NUMBER: 0000912057-96-013182 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960626 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HONEYWELL INC CENTRAL INDEX KEY: 0000048305 STANDARD INDUSTRIAL CLASSIFICATION: AUTO CONTROLS FOR REGULATING RESIDENTIAL & COMML ENVIRONMENT [3822] IRS NUMBER: 410415010 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20629 FILM NUMBER: 96586057 BUSINESS ADDRESS: STREET 1: HONEYWELL PLZ CITY: MINNEAPOLIS STATE: MN ZIP: 55408 BUSINESS PHONE: 6129511000 MAIL ADDRESS: STREET 1: PO BOX 524 CITY: MINEAPOLIS STATE: MN ZIP: 55440-0524 FORMER COMPANY: FORMER CONFORMED NAME: MINNEAPOLIS HONEYWELL REGULATOR CO DATE OF NAME CHANGE: 19670213 11-K 1 FORM 11-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) [ X ] Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (FEE REQUIRED) For the fiscal year ended December 31, 1995 OR [ ] Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (NO FEE REQUIRED) For the transition period from to ------------------- ------------------- Commission File Numbers: 33-44283 and 33-59357 A. Full title of the plan and address of the plan, if different from that of the issuer named below: HONEYWELL RETIREMENT SAVINGS PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: HONEYWELL INC. Honeywell Plaza Minneapolis, Minnesota 55408 Included herewith and set forth on pages 1 to 10 hereof are the Honeywell Retirement Savings Plan Financial Statements for the Years Ended December 31, 1995 and 1994 and Supplemental Schedules for the Year Ended December 31, 1995 prepared by the firm of Deloitte & Touche LLP, Independent Auditors. HONEYWELL RETIREMENT SAVINGS PLAN FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994 AND INDEPENDENT AUDITORS' REPORT HONEYWELL RETIREMENT SAVINGS PLAN TABLE OF CONTENTS - -------------------------------------------------------------------------------- PAGE INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS: Statements of Net Assets Available for Benefits, 2-3 December 31, 1995 and 1994 Statements of Changes in Net Assets Available for Benefits, Years Ended December 31, 1995 and 1994 4-5 Notes to Financial Statements 6 INDEPENDENT AUDITORS' REPORT Honeywell Retirement Savings Plan We have audited the accompanying financial statements of Honeywell Retirement Savings Plan (the Plan) as of December 31, 1995 and 1994 and for the years then ended, listed in the foregoing Table of Contents. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the accompanying financial statements present fairly, in all material respects, the net assets available for benefits as of December 31, 1995 and 1994 and the changes in net assets available for benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information by fund is presented for the purpose of additional analysis of the basic financial statements, rather than to present information regarding the net assets available for benefits and changes in net assets available for benefits of the individual funds. It is not a required part of the basic financial statements. This supplemental information by fund has been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, is fairly stated in all material respects, when considered in relation to the basic financial statements taken as a whole. /s/ Deloitte & Touche LLP Deloitte & Touche LLP Minneapolis, Minnesota June 10, 1996 HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------------------------------------------- (SUPPLEMENTAL INFORMATION BY FUND) ----------------------------------------------------------------------- GOVERNMENT SHORT-TERM BONDS STOCKS HONEYWELL COMBINED INCOME BOND PLUS PLUS S&P 500 STOCK TOTAL FUND FUND FUND FUND FUND FUND ASSETS: Investments in Honeywell - Master Trusts $ 75,183 $ 28,261 $ 534 $ 1,308 $ 12,475 $ 17,503 $ 4,727 Contributions receivable 79 21 1 2 25 21 Other receivables 282 263 3 2 7 5 -------- -------- ----- ------- -------- -------- ------- Total assets 75,544 28,545 538 1,312 12,507 17,529 4,727 LIABILITIES: Administration fees payable 14 6 1 3 4 Other payables 268 248 4 2 6 (1) 9 -------- -------- ----- ------- -------- -------- ------- Total liabilities 282 254 4 3 9 3 9 -------- -------- ----- ------- -------- -------- ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 75,262 $ 28,291 $ 534 $ 1,309 $ 12,498 $ 17,526 $ 4,718 -------- -------- ----- ------- -------- -------- ------- -------- -------- ----- ------- -------- -------- ------- (SUPPLEMENTAL INFORMATION BY FUND) -------------------------------------------------------------------------------------------- VANGUARD T. ROWE WORLD T. ROWE PRICE UNITED COLUMBIA U.S. SCUDDER PRICE SMALL CAP INCOME JANUS SPECIAL GROWTH INTERNATIONAL INTERNATIONAL VALUE FUND FUND FUND FUND FUND FUND FUND ASSETS: Investments in Honeywell - Master Trusts $ 584 $ 1,085 $ 1,123 $ 584 $ 434 $ 1,572 $ 613 Contributions receivable 1 1 2 1 1 2 1 Other receivables ----- ------- ------- ----- ----- ------- ----- Total assets 585 1,086 1,125 585 435 1,574 614 LIABILITIES: Administration fees payable Other payables ----- ------- ------- ----- ----- ------- ----- Total liabilities NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 585 $ 1,086 $ 1,125 $ 585 $ 435 $ 1,574 $ 614 ----- ------- ------- ----- ----- ------- ----- ----- ------- ------- ----- ----- ------- ----- (SUPPLEMENTAL INFORMATION BY FUND) ------------------------------------- T. ROWE PRICE EQUITY INCOME ISOLATED PARTICIPANT FUND FUNDS LOANS ASSETS: Investments in Honeywell - Master Trusts $ 1,560 $ 1,205 $ 1,615 Contributions receivable Other receivables 2 ------- ------- ------- Total assets 1,562 1,205 1,615 LIABILITIES: Administration fees payable Other payables ------- ------- ------- Total liabilities NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 1,562 $ 1,205 $ 1,615 ------- ------- ------- ------- ------- -------
See accompanying notes to financial statements. 2 HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1994 (AMOUNTS IN THOUSANDS) - ---------------------------------------------------------------------------------------------------------- (SUPPLEMENTAL INFORMATION BY FUND) ------------------------------------------------------------ GOVERNMENT SHORT-TERM BONDS STOCKS COMBINED INCOME BOND PLUS PLUS S&P 500 TOTAL FUND FUND FUND FUND FUND ASSETS: Investments in Honeywell - Master Trusts $ 62,633 $ 23,371 $ 340 $ 743 $ 10,823 $ 11,869 Contributions receivable 156 50 2 5 28 37 Other receivables 231 201 3 -------- -------- ----- ------- -------- -------- Total assets 63,020 23,622 342 748 10,854 11,906 LIABILITIES: Administration fees payable 11 4 3 3 Other payables 231 201 1 (1) 3 -------- -------- ------- -------- -------- Total liabilities 242 205 1 2 6 -------- -------- ----- ------- -------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 62,778 $ 23,417 $ 342 $ 747 $ 10,852 $ 11,900 -------- -------- ----- ------- -------- -------- -------- -------- ----- ------- -------- -------- (SUPPLEMENTAL INFORMATION BY FUND) ------------------------------------------------------------------------ FROZEN FIXED HONEYWELL UNITED COLUMBIA VANGUARD INCOME STOCK INCOME JANUS SPECIAL WORLD U.S. FUND FUND FUND FUND FUND GROWTH FUND ASSETS: Investments in Honeywell - Master Trusts $ 3,710 $ 3,017 $ 290 $ 775 $ 705 $ 113 Contributions receivable 11 2 3 4 Other receivables 27 ------- ------- ----- ----- ----- ----- Total assets 3,737 3,028 292 778 709 113 LIABILITIES: Administration fees payable 1 Other payables 27 ------- Total liabilities 28 ------- ------- ----- ----- ----- ----- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 3,709 $ 3,028 $ 292 $ 778 $ 709 $ 113 ------- ------- ----- ----- ----- ----- ------- ------- ----- ----- ----- ----- (SUPPLEMENTAL INFORMATION BY FUND) -------------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE PRICE PRICE SCUDDER PRICE SMALL CAP EQUITY INTERNATIONAL INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUNDS LOANS ASSETS: Investments in Honeywell - Master Trusts $ 507 $ 1,917 $ 339 $ 828 $ 2,217 $ 1,069 Contributions receivable 2 8 1 3 Other receivables ----- ------- ----- ----- ------- ------- Total assets 509 1,925 340 831 2,217 1,069 LIABILITIES: Administration fees payable Other payables Total liabilities ----- ------- ----- ----- ------- ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 509 $ 1,925 $ 340 $ 831 $ 2,217 $ 1,069 ----- ------- ----- ----- ------- ------- ----- ------- ----- ----- ------- -------
See accompanying notes to financial statements. 3 HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS) - --------------------------------------------------------------------------------------------------------- (SUPPLEMENTAL INFORMATION BY FUND) ---------------------------------------------------------- GOVERNMENT SHORT-TERM BONDS STOCKS COMBINED INCOME BOND PLUS PLUS S&P 500 TOTAL FUND FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $ 12,259 $ 1,469 $ 48 $ 192 $ 2,651 $ 4,612 CONTRIBUTIONS: Employee pretax contributions 3,835 1,047 58 110 660 979 Rollover contributions 830 145 10 49 61 246 -------- -------- ------ ------- -------- -------- Total contributions 4,665 1,192 68 159 721 1,225 TRANSFERS FROM (TO) OTHER FUNDS 4,506 114 227 (843) 538 TRANSFERS (TO) FROM OTHER PLANS (52) (26) (1) (5) (6) -------- -------- ------ ------- -------- -------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 16,872 7,141 230 577 2,524 6,369 LOANS: Repayments 283 9 10 111 166 Distributions (372) (9) (11) (174) (283) DISTRIBUTIONS TO PARTICIPANTS (4,266) (2,130) (36) (11) (792) (596) TRUSTEES' AND ADMINISTRATIVE FEES (122) (48) (2) (3) (23) (30) -------- -------- ------ ------- -------- -------- INCREASE (DECREASE) IN NET ASSETS 12,484 4,874 192 562 1,646 5,626 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 62,778 23,417 342 747 10,852 11,900 -------- -------- ------ ------- -------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 75,262 $ 28,291 $ 534 $ 1,309 $ 12,498 $ 17,526 -------- -------- ------ ------- -------- -------- -------- -------- ------ ------- -------- -------- (SUPPLEMENTAL INFORMATION BY FUND) ---------------------------------------------------------------------- FROZEN VANGUARD FIXED HONEYWELL UNITED COLUMBIA WORLD INCOME STOCK INCOME JANUS SPECIAL GROWTH FUND FUND FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $ 133 $ 1,753 $ 92 $ 237 $ 230 $ 95 CONTRIBUTIONS: Employee pretax contributions (5) 311 52 87 109 43 Rollover contributions 69 79 34 24 26 ------ ------- ----- ------- ------- ------ Total contributions (5) 380 131 121 133 69 TRANSFERS FROM (TO) OTHER FUNDS (3,658) (214) 93 40 129 319 TRANSFERS (TO) FROM OTHER PLANS (3) (8) (1) ------ ------- ----- ------- ------- ------ TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS (3,533) 1,911 315 398 492 483 LOANS: Repayments 48 5 11 12 4 Distributions (19) (90) (15) (23) (7) (8) DISTRIBUTIONS TO PARTICIPANTS (152) (175) (12) (77) (81) (6) TRUSTEES' AND ADMINISTRATIVE FEES (5) (4) (1) (1) ------ ------- ----- ------- ------- ------ INCREASE (DECREASE) IN NET ASSETS (3,709) 1,690 293 308 416 472 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 3,709 3,028 292 778 709 113 ------ ------- ----- ------- ------- ------ NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ - $ 4,718 $ 585 $ 1,086 $ 1,125 $ 585 ------ ------- ----- ------- ------- ------ ------ ------- ----- ------- ------- ------ (SUPPLEMENTAL INFORMATION BY FUND) --------------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE PRICE PRICE SCUDDER PRICE SMALL CAP EQUITY INTERNATIONAL INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUNDS LOANS NET INVESTMENT INCOME IN MASTER TRUSTS $ 57 $ 159 $ 116 $ 348 $ 67 CONTRIBUTIONS: Employee pretax contributions 60 161 45 118 Rollover contributions 3 2 13 69 ----- ------- ----- ------- Total contributions 63 163 58 187 TRANSFERS FROM (TO) OTHER FUNDS (176) (561) 141 237 $ (1,012) 120 TRANSFERS (TO) FROM OTHER PLANS (1) (1) ----- ------- ----- ------- -------- ------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS (56) (240) 314 772 (1,012) 187 LOANS: Repayments 6 31 4 11 (711) Distributions (4) (36) (10) (9) 1,070 DISTRIBUTIONS TO PARTICIPANTS (19) (104) (33) (42) TRUSTEES' AND ADMINISTRATIVE FEES (1) (2) (1) (1) ----- ------- ----- ------- -------- ------- INCREASE (DECREASE) IN NET ASSETS (74) (351) 274 731 (1,012) 546 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 509 1,925 340 831 2,217 1,069 ----- ------- ----- ------- -------- ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 435 $ 1,574 $ 614 $ 1,562 $ 1,205 $ 1,615 ----- ------- ----- ------- -------- ------- ----- ------- ----- ------- -------- -------
See accompanying notes to financial statements. 4 HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1994 (AMOUNTS IN THOUSANDS) - ---------------------------------------------------------------------------------------------------------- (SUPPLEMENTAL INFORMATION BY FUND) ------------------------------------------------------------ GOVERNMENT SHORT-TERM BONDS STOCKS COMBINED INCOME BOND PLUS PLUS S&P 500 TOTAL FUND FUND FUND FUND FUND NET INVESTMENT INCOME (LOSS) IN MASTER TRUSTS $ 1,244 $ 837 $ (1) $ (10) $ (5) $ 159 CONTRIBUTIONS: Employee pretax contributions 4,034 1,194 73 126 823 968 Rollover contributions 145 47 6 8 6 18 -------- -------- ------ ------- -------- -------- Total contributions 4,179 1,241 79 134 829 986 TRANSFERS FROM (TO) OTHER FUNDS 6,632 (68) (302) (1,211) (1,115) -------- -------- ------ ------- -------- -------- TOTAL INVESTMENT INCOME (LOSS), CONTRIBUTIONS, AND TRANSFERS 5,423 8,710 10 (178) (387) 30 LOANS: Repayments 224 8 8 117 115 Distributions (240) (11) (2) (108) (18) DISTRIBUTIONS TO PARTICIPANTS (4,171) (1,967) (29) (31) (631) (768) TRUSTEES' AND ADMINISTRATIVE FEES (139) (50) (1) (3) (26) (32) -------- -------- ------ ------- -------- -------- INCREASE (DECREASE) IN NET ASSETS 1,113 6,677 (23) (206) (1,035) (673) NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 61,665 16,740 365 953 11,887 12,573 -------- -------- ------ ------- -------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 62,778 $ 23,417 $ 342 $ 747 $ 10,852 $ 11,900 -------- -------- ------ ------- -------- -------- -------- -------- ------ ------- -------- -------- (SUPPLEMENTAL INFORMATION BY FUND) ------------------------------------------------------------------------ FROZEN FIXED HONEYWELL UNITED COLUMBIA VANGUARD INCOME STOCK INCOME JANUS SPECIAL WORLD U.S. FUND FUND FUND FUND FUND GROWTH FUND NET INVESTMENT INCOME (LOSS) IN MASTER TRUSTS $ 466 $ (117) $ (10) $ (9) $ 3 $ 4 CONTRIBUTIONS: Employee pretax contributions 12 255 50 88 106 13 Rollover contributions 13 1 14 5 8 ------- ------- ----- ------- ------- ------ Total contributions 12 268 51 102 111 21 TRANSFERS FROM (TO) OTHER FUNDS (4,731) 263 89 103 164 26 ------- ------- ----- ------- ------- ------ TOTAL INVESTMENT INCOME (LOSS), CONTRIBUTIONS, AND TRANSFERS (4,253) 414 130 196 278 51 LOANS: Repayments 32 5 6 4 2 Distributions (39) (40) (4) (4) (8) (2) DISTRIBUTIONS TO PARTICIPANTS (458) (147) (19) (67) (9) (3) TRUSTEES' AND ADMINISTRATIVE FEES (16) (4) (1) (1) ------- ------- ----- ------- ------- ------ INCREASE (DECREASE) IN NET ASSETS (4,766) 255 112 130 265 47 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 8,475 2,773 180 648 444 66 ------- ------- ----- ------- ------- ------ NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 3,709 $ 3,028 $ 292 $ 778 $ 709 $ 113 ------- ------- ----- ------- ------- ------ ------- ------- ----- ------- ------- ------ (SUPPLEMENTAL INFORMATION BY FUND) ---------------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE PRICE PRICE SCUDDER PRICE SMALL CAP EQUITY INTERNATIONAL INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUNDS LOANS NET INVESTMENT INCOME (LOSS) IN MASTER TRUSTS $ (26) $ (53) $ (8) $ 26 $ (12) CONTRIBUTIONS: Employee pretax contributions 63 177 30 56 Rollover contributions 1 7 9 2 ----- ------- ----- ------- Total contributions 64 184 39 58 TRANSFERS FROM (TO) OTHER FUNDS 165 1,083 181 243 $ (1,522) ----- ------- ----- ------- -------- ------- TOTAL INVESTMENT INCOME (LOSS), CONTRIBUTIONS, AND TRANSFERS 203 1,214 212 327 (1,522) (12) LOANS: Repayments 7 24 1 5 (558) Distributions (4) (28) (6) 514 DISTRIBUTIONS TO PARTICIPANTS (11) (10) (8) (13) TRUSTEES' AND ADMINISTRATIVE FEES (1) (3) (1) ----- ------- ----- ------- -------- ------- INCREASE (DECREASE) IN NET ASSETS 194 1,197 205 312 (1,522) (56) NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 315 728 135 519 3,739 1,125 ----- ------- ----- ------- -------- ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 509 $ 1,925 $ 340 $ 831 $ 2,217 $ 1,069 ----- ------- ----- ------- -------- ------- ----- ------- ----- ------- -------- -------
See accompanying notes to financial statements. 5 HONEYWELL RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1995 AND 1994 - -------------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING - The financial statements of the Honeywell Retirement Savings Plan (the Plan) are prepared under the accrual method of accounting. Contributions to the Plan are included in income in the year the contributions payable are accrued by Honeywell Inc. (the Sponsor) or paid in by plan participants. INVESTMENT VALUATION - All determinations of fair values of investments are made by the trustees and are based upon quoted prices in an active market. Unallocated insurance contracts are valued at their contract values, as determined by issuing insurance companies. PAYMENTS OF BENEFITS - Benefits are recorded when paid. 2. PLAN DESCRIPTION GENERAL INFORMATION - The Plan is a voluntary, tax-deferred savings plan designed to provide supplemental retirement benefits to certain Honeywell employees covered by collective bargaining agreements which provide for coverage under the Plan. The Honeywell Pension and Retirement Committee, as the plan administrator, designates members of the Honeywell Pension and Retirement Administrative Committee and appoints the trustees. The Honeywell Pension and Retirement Administrative Committee has authority to take actions as may be necessary for the administration of the Plan or as it is directed by the Honeywell Pension and Retirement Committee. See Note 6 for a listing of the appointed trustees. CONTRIBUTIONS - The following contributions are made to the Plan: (a) The Sponsor contributes to the Plan, on behalf of participants, various percentages of the participants' pay, as elected by the participants. The maximum pretax and after-tax contribution percentages are determined by the Honeywell Pension Retirement Committee. The participants elect their own contribution levels, subject to this maximum percentage. Contributions are subject to certain limitations. (b) Participants who have received distributions from other qualified plans under Section 401(a) of the Internal Revenue Code or from individual retirement plans under Sections 402 and 408 of the code may transfer (rollover) all or part of such distributions to their accounts. LOANS TO PARTICIPANTS - The Plan allows participants to apply for and obtain a loan in an amount as defined in the Plan (not less than $1,000 and not greater than $50,000 or 50% of their pretax or pretax rollover account balances) from the balance of their accounts. The loans can be repaid through payroll deductions over the period of 12 to 48 months or up to 180 months for the purchase of a primary residence, or they can be repaid in full at any time that is at least 6 months following the date of the loan. Interest is charged at a rate equal to prime rate plus 1%. Payments of principal and interest are credited to the participants' accounts. Also, participants may have only one outstanding loan at a time. 6 PARTICIPATION - Employees are eligible to participate in the Plan only if they are covered under certain collective bargaining agreements which provide for participation in the Plan, are classified as a Regular Employee (as defined), and are not covered by any other savings plan maintained by Honeywell. All participants' accounts are adjusted monthly for investment income/loss, withdrawals, and for all other changes in net assets. VESTING - Participants are 100% vested in their individual accounts. In the event of plan termination, the participants' accounts become distributable to the participants or their beneficiaries, in accordance with the provisions of the Plan. INVESTMENT OPTIONS - For contributions, the Plan provides for several investment options. Individual participants choose the fund or funds in which to invest from the following: GOVERNMENT INCOME FUND - Invests primarily in short-term U.S. Government securities. SHORT-TERM BOND FUND - Invests in U.S. Government, mortgage, and high-quality corporate bonds with short-term U.S. Government securities. BONDS PLUS FUND - Diversified among U.S. Treasury bills, high- quality intermediate- and long-term (1-10 years) bonds, and domestic stocks. STOCKS PLUS FUND - Invests in domestic stocks that make up the Standard & Poor's 500 Composite Stock Index, high-quality bonds, T. Rowe Price Foreign Equity Fund, and U.S. Treasury bills. S&P 500 FUND - Invests in stocks that make up the Standard & Poor's 500 Composite Stock Index. FROZEN FIXED INCOME FUND - Invests primarily in guaranteed investment contracts. HONEYWELL STOCK FUND - Invests entirely in shares of Honeywell Inc. common stock. UNITED INCOME FUND - Invests primarily in common stocks of large, well-established companies that pay above-average dividends. The fund also invests, to a lesser extent, in fixed-income securities - both high-quality corporate bonds and U.S. Treasury obligations. JANUS FUND - Invests primarily in a combination of large, familiar corporations and small, rapidly emerging companies. COLUMBIA SPECIAL FUND - Invests primarily in smaller companies with capitalizations that are less than the average for the companies included in the Standard & Poor's 500 Composite Stock Index. VANGUARD WORLD U.S. GROWTH FUND - Invests primarily in high- quality, established growth stocks of companies with exceptional earnings records, strong market positions, good financial strength, and low sensitivity to changing economic conditions. SCUDDER INTERNATIONAL FUND - Intends to diversify its foreign investments among several countries and not concentrate investments in any particular industry. 7 T. ROWE PRICE INTERNATIONAL STOCK FUND - Invests primarily in stock of established companies outside the United States with proven performance records. T. ROWE PRICE SMALL CAP VALUE FUND - Invests primarily in common stocks of small, rapidly growing companies. T. ROWE PRICE EQUITY INCOME FUND - Invests primarily in common stocks of large, well-established companies that pay above- average dividends. PLAN STATUS - The Plan has received a favorable determination letter from the Internal Revenue Service stating that the Plan was qualified under the applicable sections of the Internal Revenue Code. PLAN TERMINATION - Although it has not expressed any intent to do so, the Sponsor has the right under the Plan to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of the Employee Retirement Income Security Act of 1974. In the event of plan termination, participants shall be 100% vested in their accounts. 3. INVESTMENT IN EXECUTIVE LIFE INSURANCE COMPANY At December 31, 1995 and 1994, the Plan's Isolated Funds consisted primarily of investments in Executive Life Insurance Company (Executive Life) guaranteed investment contracts (GICs), with approximately 1% and 3% of total net assets available for benefits. In 1991, the State of California insurance commissioner seized Executive Life and placed it in a court-supervised conservatorship. In 1993, 1994, and 1995, distributions have been received from the conservator totaling approximately 80% of the contract balance immediately prior to the conservatorship. Furthermore, the Plan's management currently estimates that the sum of additional distributions from the conservator, and recoveries from various state guaranty funds, will not differ significantly from the remaining recorded contract values. Although the Plan is currently involved in litigation with various state guaranty funds regarding the amount and nature of coverage, plan management does not believe that the ultimate shortfall will be material to the Plan's financial statements. The Plan's Sponsor isolated the Executive Life GICs into the Isolated Funds pursuant to a plan amendment requiring such action. Currently, there are certain restrictions on the ability to withdraw, transfer, or conduct settlement activity with respect to the remaining balances. 4. INTEREST IN MASTER TRUSTS The Plan's investments are included in master trusts with T. Rowe Price Trust Company and First Trust National Association, which were established in 1993 for the investment of assets of the Plan and several other Honeywell-sponsored retirement plans. Previously, the Plan's investments were held in master trusts with various trust companies. Each participating retirement plan has an undivided interest in the master trusts. At December 31, 1995 and 1994, the Plan's interest in the net assets of the master trusts was approximately 5%. Investment income and administrative expenses related to the master trust are allocated to the individual plans based upon average monthly balances invested by each plan. 8 The following table presents the fair value of investments held in master trusts: 1995 1994 Investments at fair value (in thousands): Custom funds: Government Income Fund $ 366,474 $ 305,890 Short-Term Bond Fund 14,601 10,256 Bonds Plus Fund 27,817 17,508 Stocks Plus Fund 278,497 232,215 S&P 500 Fund 324,162 226,632 Fixed Income Fund (a) 53,416 Honeywell Stock Fund 300,564 173,541 Mutual funds, primarily equity securities 228,849 155,760 Participants' loans 30,623 26,288 ----------- ----------- $ 1,571,587 $ 1,201,506 ----------- ----------- ----------- ----------- (a) at contract value Investment income for master trust is as follows (in thousands): 1995 1994 Net appreciation (depreciation) in fair value of investments: Custom funds: Short-Term Bond Fund $ 1,414 $ (52) Bonds Plus Fund 4,399 (273) Stocks Plus Fund 56,870 (2,286) S&P 500 Fund 86,294 3,089 Honeywell Stock Fund 101,561 (13,531) Mutual funds, primarily equity securities 26,821 (9,911) ----------- ----------- 277,359 (22,964) Interest and dividends 43,784 34,701 ----------- ----------- $ 321,143 $ 11,737 ----------- ----------- ----------- ----------- In 1993, the Sponsor transferred the GICs issued by Executive Life and Mutual Benefit Life Insurance Company to First Trust National Association. A master trust was established for the investment of these assets of the Plan and several other Honeywell-sponsored retirement plans. Each participating retirement plan has an undivided interest in the master trust. At December 31, 1995 and 1994, the Plan's interest in the net assets of the master trust was approximately 6%. The contract value of the GICs for the master trust was approximately $20.9 million and $39.0 million at December 31, 1995 and 1994, respectively. 5. PARTIES-IN-INTEREST TRANSACTIONS There were no prohibited party-in-interest transactions during the years ended December 31, 1995 and 1994. 9 6. INFORMATION PROVIDED BY TRUSTEES Plan funds are held in trust by trustees for the sole purpose of making investments, plan payments, and for paying trust operating expenses. Trustees appointed by the Honeywell Pension and Retirement Committee as of December 31, 1994 were T. Rowe Price Company and First Trust National Association. The trustees provide the Plan with monthly statements, which report all transactions. The plan administrator has obtained certifications from the trustees that the information in such statements is complete and accurate. The amounts in the accompanying statements of net assets available for benefits and of changes in net assets available for benefits have been derived from the information submitted by the trustees, except for certain adjustments which resulted in an increase (decrease) in the amount of net assets reported by the trustees of $907,805 and $287,579 as of December 31, 1995 and 1994, respectively. Such adjustments are primarily recorded for the purpose of converting the trustees' statements from the cash basis to the accrual basis of accounting and to reflect the impact of participant loan activity. The Government Income Fund, Stocks Plus Fund, S&P 500 Fund, and Honeywell Stock Fund individually represent 5% or more of net assets available for benefits as of December 31, 1995. As of December 31, 1994, the Government Income Fund, Stocks Plus Fund, Frozen Fixed Income Fund, and S&P 500 Fund individually represent 5% or more of net assets available for benefits. 10 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. HONEYWELL RETIREMENT SAVINGS PLAN Dated: June 26, 1996 By: /s/ Jim Porter ------------------------------------ EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 23.1 Consent of Deloitte & Touche LLP EX-23.1 2 EXHIBIT 23.1 EXHIBIT 23.1 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Registration Statement No. 33-44283 and No. 33-59357 of the Honeywell Retirement Savings Plan on Form S-8 of our report dated June 10, 1996, appearing in this Annual Report on Form 11-K of the Honeywell Retirement Savings Plan for the year ended December 31, 1995. /s/ Deloitte & Touche LLP Deloitte & Touche LLP Minneapolis, Minnesota June 24, 1996 -----END PRIVACY-ENHANCED MESSAGE-----