-----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, WDld5HXEoOS/i90A7AVNgQM2FjTNNyLljnJJgbBkAwWsCGqMrMYow1HjI6/8C5Tf l4KVLPHQ8my+x1n5IbCnlw== 0000912057-97-022272.txt : 19970630 0000912057-97-022272.hdr.sgml : 19970630 ACCESSION NUMBER: 0000912057-97-022272 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970627 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: 97631895 BUSINESS ADDRESS: STREET 1: HONEYWELL PLZ STREET 2: 2701 4TH AVE S 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 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 For the fiscal year ended December 31, 1996 OR [ ] Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 For the transition period from to ------------------ ------------------- Commission File Number 33-44282 A. Full title of the plan and address of the plan, if different from that of the issuer named below: HONEYWELL RETIREMENT INVESTMENT 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 2 to 10 hereof are the Honeywell Retirement Investment Plan Financial Statements for the Years Ended December 31, 1996 and 1995 and Supplemental Schedules for the Year Ended December 31, 1996 prepared by the firm of Deloitte & Touche LLP, Independent Auditors. HONEYWELL RETIREMENT INVESTMENT PLAN FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995 AND INDEPENDENT AUDITORS' REPORT HONEYWELL RETIREMENT INVESTMENT PLAN TABLE OF CONTENTS - ------------------------------------------------------------------------------- PAGE INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS: Statements of Net Assets Available for Benefits, December 31, 1996 and 1995 2-3 Statements of Changes in Net Assets Available for Benefits, Years Ended December 31, 1996 and 1995 4-5 Notes to Financial Statements 6 INDEPENDENT AUDITORS' REPORT Honeywell Retirement Investment Plan We have audited the accompanying financial statements of Honeywell Retirement Investment Plan (the Plan) as of December 31, 1996 and 1995 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, 1996 and 1995 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, and it is not a required part of the basic financial statements. This supplemental information by fund is the responsibility of the Plan's management. Such 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. Minneapolis, Minnesota June 20, 1997 HONEYWELL RETIREMENT INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1996 - -------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND) --------------------------------------------------------------------------------------- GOVERNMENT SHORT-TERM BONDS STOCKS HONEYWELL UNITED COMBINED INCOME BOND PLUS PLUS S&P 500 STOCK INCOME TOTAL FUND FUND FUND FUND FUND FUND FUND ASSETS: Investments in Master Trusts $ 3,376,714 $ 844,951 $ 3,729 $ 7,435 $ 977,528 $ 588,264 $ 571,403 $ 2 Investments in First Trust 127,246 Other receivables 18,308 17,771 62 475 ----------- ---------- -------- -------- --------- --------- --------- ------- Total assets 3,522,268 862,722 3,729 7,497 978,003 588,264 571,403 2 LIABILITIES: Administration fees payable 1,281 373 32 44 453 379 Other payables 18,682 17,771 6 92 749 64 ----------- ---------- -------- -------- --------- --------- Total liabilities 19,963 18,144 38 136 1,202 443 ----------- ---------- -------- -------- --------- --------- --------- ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 3,502,305 $ 844,578 $ 3,691 $ 7,361 $ 976,801 $ 587,821 $ 571,403 $ 2 ----------- ---------- -------- -------- --------- --------- --------- ------- ----------- ---------- -------- -------- --------- --------- --------- ------- (SUPPLEMENTAL INFORMATION BY FUND) --------------------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE VANGUARD PRICE PRICE PRICE COLUMBIA WORLD INTERNATIONAL SMALL CAP EQUITY SPECIAL JANUS GROWTH STOCK VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUND FUND FUNDS LOANS --------- ---------- -------- -------- --------- --------- --------- ----------- ASSETS: Investments in Master Trusts $ 72,394 $ 46,248 $ 41,039 $ 33,083 $ 18,495 $ 7,246 $ 164,897 Investments in First Trust $ 127,246 Other receivables --------- ---------- -------- -------- --------- --------- --------- --------- Total assets 72,394 46,248 41,039 33,083 18,495 7,246 127,246 164,897 LIABILITIES: Administration fees payable Other payables Total liabilities NET ASSETS AVAILABLE FOR --------- ---------- -------- -------- --------- --------- --------- --------- BENEFITS AT END OF YEAR $ 72,394 $ 46,248 $ 41,039 $ 33,083 $ 18,495 $ 7,246 $ 127,246 $ 164,897 --------- ---------- -------- -------- --------- --------- --------- --------- --------- ---------- -------- -------- --------- --------- --------- ---------
See accompanying notes to financial statements. 2 HONEYWELL RETIREMENT INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1995 - -------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND) ------------------------------------------------------------------------------------- GOVERNMENT SHORT-TERM BONDS STOCKS HONEYWELL UNITED COLUMBIA COMBINED INCOME BOND PLUS PLUS S&P 500 STOCK INCOME SPECIAL TOTAL FUND FUND FUND FUND FUND FUND FUND FUND ASSETS: Investments in Master Trusts $ 3,944,720 $ 1,000,732 $ 7,115 $ 4,963 $ 1,205,648 $ 592,621 $ 743,904 $ 6,818 $ 69,803 Investments at First Trust 106,235 Contributions receivable 10,154 980 70 560 772 7,190 10 96 Other receivables 9,577 9,251 44 5 277 ----------- ----------- -------- -------- ----------- ---------- --------- -------- -------- Total assets 4,070,686 1,010,963 7,229 4,968 1,206,485 593,393 751,094 6,828 69,899 LIABILITIES: Administration fees payable 617 197 5 2 278 135 Other payables 9,916 9,251 47 6 655 (43) ----------- ----------- -------- -------- ----------- ---------- Total liabilities 10,533 9,448 52 8 933 92 ----------- ----------- -------- -------- ----------- ---------- --------- -------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 4,060,153 $ 1,001,515 $ 7,177 $ 4,960 $ 1,205,552 $ 593,301 $ 751,094 $ 6,828 $ 69,899 ----------- ----------- -------- -------- ----------- ---------- --------- -------- -------- ----------- ----------- -------- -------- ----------- ---------- --------- -------- -------- (SUPPLEMENTAL INFORMATION BY FUND) --------------------------------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE VANGUARD PRICE PRICE PRICE SCUDDER WORLD INTERNATIONAL SMALL CAP EQUITY JANUS INTERNATIONAL GROWTH STOCK VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUND FUND FUNDS LOANS ASSETS: Investments in Master Trusts $ 45,588 $ 8,062 $ 39,836 $ 68,552 $ 8,637 $ 14,137 $ 128,304 Investments at First Trust $ 106,235 Contributions receivable 105 22 80 209 20 40 Other receivables --------- -------- --------- --------- -------- -------- --------- --------- Total assets 45,693 8,084 39,916 68,761 8,657 14,177 106,235 128,304 LIABILITIES: Administration fees payable Other payables Total liabilities NET ASSETS AVAILABLE FOR --------- -------- --------- --------- -------- -------- --------- --------- BENEFITS AT END OF YEAR $ 45,693 $ 8,084 $ 39,916 $ 68,761 $ 8,657 $ 14,177 $ 106,235 $ 128,304 --------- -------- --------- --------- -------- -------- --------- --------- --------- -------- --------- --------- -------- -------- --------- ---------
See accompanying notes to financial statements. 3 HONEYWELL RETIREMENT INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1996 - -------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND) ------------------------------------------------------------------------------------- GOVERNMENT SHORT-TERM BONDS STOCKS HONEYWELL UNITED COLUMBIA COMBINED INCOME BOND PLUS PLUS S&P 500 STOCK INCOME SPECIAL TOTAL FUND FUND FUND FUND FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $ 588,644 $ 47,449 $ (22,782) $ 1,327 $ 153,088 $ 140,465 $ 210,418 $ 506 $ 8,906 CONTRIBUTIONS: Employer contributions 4,424 4,424 Rollover contributions 117,293 (4,308) (7,759) 44 (716) (85) (85) Employee pretax contributions 24,903 7,189 260 81 3,849 4,336 4,483 106 663 ----------- ---------- ---------- -------- --------- --------- --------- ------ -------- Total contributions 146,620 2,881 260 81 (3,910) 4,380 8,191 21 578 TRANSFERS FROM (TO) OTHER FUNDS 68,940 2,000 2,538 44,505 55,485 (168,751) 1,253 ----------- ---------- ---------- -------- --------- --------- --------- ------ ------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 735,263 119,269 (20,522) 3,945 193,684 200,330 49,858 527 10,737 LOANS: Repayments 16,090 457 7 7,518 13,283 9,032 85 291 Distributions (6,304) (7,828) (10,606) (1,362) DISTRIBUTIONS TO PARTICIPANTS (1,281,562) (284,202) 17,008 (866) (417,344) (205,452) (236,595) (7,433) (8,481) TRUSTEES' AND ADMINISTRATIVE FEES (11,549) (1,790) (429) (685) (4,781) (3,035) (624) (5) (52) ----------- ---------- ---------- -------- --------- --------- --------- ------ ------- INCREASE (DECREASE) IN NET ASSETS (557,848) (156,937) (3,486) 2,401 (228,751) (5,480) (179,691) (6,826) 2,495 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 4,060,153 1,001,515 7,177 4,960 1,205,552 593,301 751,094 6,828 69,899 ----------- ---------- ---------- -------- --------- --------- --------- ------ ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 3,502,305 $ 844,578 $ 3,691 $ 7,361 $ 976,801 $ 587,821 $ 571,403 $ 2 $ 72,394 ----------- ---------- ---------- -------- --------- --------- --------- ------ -------- ----------- ---------- ---------- -------- --------- --------- --------- ------ -------- (SUPPLEMENTAL INFORMATION BY FUND) ----------------------------------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE VANGUARD PRICE PRICE PRICE SCUDDER WORLD INTERNATIONAL SMALL CAP EQUITY JANUS INTERNATIONAL GROWTH STOCK VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUND FUND FUNDS LOANS NET INVESTMENT INCOME IN MASTER TRUSTS $ 8,133 $ 453 $ 8,949 $ 7,734 $ 3,696 $ 1,616 $ 18,686 CONTRIBUTIONS: Employer contributions Rollover contributions (85) (382) (238) (229) $ 41,203 89,933 Employee pretax contributions 1,026 179 707 1,444 214 366 --------- -------- --------- --------- -------- --------- --------- -------- Total contributions 941 179 325 1,206 (15) 366 41,203 89,933 TRANSFERS FROM (TO) OTHER FUNDS (2,701) 1,590 2,748 12,161 424 (20,192) --------- -------- --------- --------- -------- --------- --------- -------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 9,074 (2,069) 10,864 11,688 15,842 2,406 21,011 108,619 LOANS: Repayments 1,644 27 1,709 2,657 1,433 594 (54,827) Distributions 26,100 DISTRIBUTIONS TO PARTICIPANTS (10,122) (6,039) (11,398) (49,986) (7,431) (9,922) (43,299) TRUSTEES' AND ADMINISTRATIVE FEES (41) (3) (52) (37) (6) (9) --------- -------- --------- --------- -------- --------- --------- -------- INCREASE (DECREASE) IN NET ASSETS 555 (8,084) 1,123 (35,678) 9,838 (6,931) 21,011 36,593 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 45,693 8,084 39,916 68,761 8,657 14,177 106,235 128,304 --------- -------- --------- --------- -------- --------- --------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 46,248 $ - $ 41,039 $ 33,083 $ 18,495 $ 7,246 $ 127,246 $164,897 --------- -------- --------- --------- -------- --------- --------- -------- --------- -------- --------- --------- -------- --------- --------- --------
See accompanying notes to financial statements. 4 HONEYWELL RETIREMENT INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1995 - -------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND) ---------------------------------------------------------------------------------------------- FROZEN GOVERNMENT SHORT-TERM BONDS STOCKS FIXED HONEYWELL UNITED COMBINED INCOME BOND PLUS PLUS S&P 500 INCOME STOCK INCOME TOTAL FUND FUND FUND FUND FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $ 781,321 $ 52,428 $ 1,504 $ 883 $ 252,575 $ 148,087 $ 9,007 $ 265,758 $ 863 CONTRIBUTIONS: Employee pretax contributions 144,165 39,831 2,662 451 27,160 24,419 24,190 451 Employer stock match 21,544 21,544 ---------- ---------- -------- -------- ---------- --------- -------- --------- ------- Total contributions 165,709 39,831 2,662 451 27,160 24,419 45,734 451 TRANSFERS FROM (TO) OTHER FUNDS 156,117 567 (15) 12,108 75,328 (190,344) 30,348 5,519 ---------- ---------- -------- -------- ---------- --------- -------- --------- ------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 947,030 248,376 4,733 1,319 291,843 247,834 (181,337) 341,840 6,833 LOANS: Repayments 29,275 2,326 34 9,739 14,080 12,992 Distributions (30,319) (3,361) (183) (21,682) (16,119) (4,453) (10,813) DISTRIBUTIONS TO PARTICIPANTS (311,389) (98,652) (18,325) (88,138) (28,777) (20,727) (54,611) TRUSTEES' AND ADMINISTRATIVE FEES (6,193) (1,662) (45) (13) (2,221) (977) (367) (669) (5) ---------- ---------- -------- -------- ---------- --------- -------- --------- ------- INCREASE (DECREASE) IN NET ASSETS 629,448 147,018 (14,672) 1,157 189,541 216,041 (206,884) 288,739 6,828 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 3,430,705 854,497 21,849 3,803 1,016,011 377,260 206,884 462,355 ---------- ---------- -------- -------- ---------- --------- -------- --------- ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $4,060,153 $1,001,515 $ 7,177 $ 4,960 $1,205,552 $ 593,301 $ - $ 751,094 $ 6,828 ---------- ---------- -------- -------- ---------- --------- -------- --------- ------- ---------- ---------- -------- -------- ---------- --------- -------- --------- ------- (SUPPLEMENTAL INFORMATION BY FUND) ---------------------------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE VANGUARD PRICE PRICE PRICE COLUMBIA SCUDDER WORLD INTERNATIONAL SMALL CAP EQUITY SPECIAL JANUS INTERNATIONAL GROWTH STOCK VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUND FUND FUND FUNDS LOANS NET INVESTMENT INCOME IN MASTER TRUSTS $ 15,892 $ 7,001 $ 1,352 $ 5,116 $ 7,790 $ 1,325 $ 2,893 $ 8,847 CONTRIBUTIONS: Employee pretax contributions 4,624 4,846 1,668 1,976 9,231 1,072 962 $ 622 Employer stock match --------- --------- -------- --------- --------- --------- --------- ---------- -------- Total contributions 4,624 4,846 1,668 1,976 9,231 1,072 962 622 TRANSFERS FROM (TO) OTHER FUNDS (8,419) 19,157 (12,651) 33,814 (26,945) 5,472 5,635 (100,982) (4,709) --------- --------- -------- --------- --------- --------- --------- ---------- -------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 12,097 31,004 (9,631) 40,906 (9,924) 7,869 9,490 (100,360) 4,138 LOANS: Repayments 1,069 2,140 1,776 320 3,105 1,769 312 (78,937) Distributions (1,172) (2,424) (2,121) (1,286) (1,758) (1,604) (1,504) 98,799 DISTRIBUTIONS TO PARTICIPANTS (1,398) (761) TRUSTEES' AND ADMINISTRATIVE FEES (69) (36) (12) (24) (75) (6) (12) --------- --------- -------- --------- --------- --------- --------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS 11,925 30,684 (9,988) 39,916 ( 10,050) 8,028 8,286 (100,360) 23,239 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 57,974 15,009 18,072 78,811 629 5,891 206,595 105,065 --------- --------- -------- --------- --------- --------- --------- ---------- ---------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 69,899 $ 45,693 $ 8,084 $ 39,916 $ 68,761 $ 8,657 $ 14,177 $ 106,235 $ 128,304 --------- --------- -------- --------- --------- --------- --------- ---------- ---------- --------- --------- -------- --------- --------- --------- --------- ---------- ----------
See accompanying notes to financial statements. 5 HONEYWELL RETIREMENT INVESTMENT PLAN NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1996 AND 1995 - ------------------------------------------------------------------------------ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING - The financial statements of the Honeywell Retirement Investment 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, except unallocated insurance contracts, which are valued at their contract values, as determined by the issuing insurance companies. PAYMENT OF BENEFITS - Benefits are recorded when paid. 2. PLAN DESCRIPTION GENERAL INFORMATION - The Plan is a voluntary, tax-deferred savings program designed to provide supplemental retirement benefits to certain employees. It succeeded Part B of the Sperry Retirement Program. Most legal provisions of the Sperry Plan remained unchanged, and the Plan continues to serve employees covered by a collective bargaining agreement which provided 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 such 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. In May 1996, the Plan Sponsor sold the division to which the participants were employed. In accordance with the sale, participants can no longer contribute to the Plan and no longer receive contributions from the Plan Sponsor. All participants became fully vested upon sale of the division. It is Honeywell's intent to hold these assets until the participants are eligible to access them under Plan provisions. There were no other significant changes to the provisions of the Plan. CONTRIBUTIONS - The following contributions are made to the Plan: (a) The Sponsor contributes to the Plan, on behalf of the 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 and Retirement Committee. Participants elect their own contribution levels, subject to this maximum percentage. Contributions, including sponsor stock match contributions, are also subject to certain limitations. 6 (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 a part of such distributions to their accounts. (c) Prior to May 1996, the Sponsor contributed between $.25 and $.50 in Honeywell Inc. stock to the participants' Performance Stock Match Fund accounts for each $1.00 participants contributed to their pretax accounts. Such sponsor contributions were limited to a maximum of 4% of the participants' pay. The amount of the Sponsor's contribution depended upon the Sponsor's return on investment (as defined). LOANS TO PARTICIPANTS - The Plan allows participants to apply for and obtain loans in an amount as defined in the Plan (not less than $1,000 and not greater than $50,000 or 50% of their pretax and 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 after 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. PARTICIPATION - Employees are eligible to participate in the Plan only if they are classified regular full-time or regular part-time employees, are not covered by any other savings plan maintained by Honeywell Inc., and are covered under a collective bargaining agreement which provides for participation in the Plan. VESTING - Participants are 100% vested in the portion of their individual accounts attributable to their contributions and become 100% vested in the portion of their accounts attributable to sponsor contributions to the Stock Match Fund after three years of service. In the event of plan termination, the individual participants' vested accounts become distributable to the participants or their beneficiaries in accordance with the provisions of the Plan. FORFEITURES - All nonvested sponsor contributions are forfeited by participants when they terminate employment. Prior to May 1996, such forfeitures are used to reduce the Sponsor's subsequent contributions. 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 and intermediate-term (one to five years) maturities. BONDS PLUS FUND - Diversified among U.S. Treasury bills, high-quality intermediate- and long-term (one to ten) 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. 7 S&P 500 FUND - Invests in stocks that make up the Standard & Poor's 500 Composite Stock Index. 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. 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 Stock Index. JANUS FUND - Invests primarily in a combination of large, established corporations and small, rapidly emerging companies. SCUDDER INTERNATIONAL FUND - Intends to diversify its foreign investments among several countries and not concentrate investments in any particular industry. During the 1996 plan year this fund option was eliminated. VANGUARD WORLD 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. 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, 1996 and 1995, the Plan's Isolated Funds consisted primarily of investments in Executive Life Insurance Company (Executive Life) guaranteed investment contracts (GICs), with approximately 1% and 2%, respectively, 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. Distributions have been received from the conservator totaling approximately 80% of the contract balance immediately prior to the conservatorship. As of the report date, June 20, 1997, the Plan has received 93% of the contract balance. Further, the Plan's management 8 currently estimates that the sum of additional distributions from the conservator, and recoveries from various state guarantee funds, will not differ significantly from the remaining recorded contract values. Although the Plan is currently involved in litigation with the 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. After the conservatorship was established, the Sponsor has isolated the Executive Life GICs into the Isolated Fund 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. INTERESTS 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. Each participating retirement plan has an undivided interest in the master trusts. At December 31, 1996 and 1995, the Plan's interest in the net assets of the master trusts was approximately 0.2% and 0.3%, respectively. 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. The following table presents the fair value of investments held in master trusts (in thousands). 1996 1995 Investments at fair value: Custom funds: Government Income Fund $ 351,723 $ 366,474 Short-Term Bond Fund 14,095 14,601 Bonds Plus Fund 37,144 27,817 Stocks Plus Fund 297,488 278,497 S&P 500 Fund 403,903 324,162 Honeywell Stock Fund 440,043 300,564 Mutual funds, primarily equity securities 335,143 228,849 Participants' loans 35,634 30,623 ------------ ------------ $ 1,915,173 $ 1,571,587 ------------ ------------ ------------ ------------ Investment income for master trust is as follows (in thousands): Net appreciation of fair value of investments: Custom funds: Short-Term Bond Fund $ 604 $ 1,414 Bonds Plus Fund 2,874 4,399 Stocks Plus Fund 38,909 56,870 S&P 500 Fund 76,126 86,294 Honeywell Stock Fund 111,749 101,561 Mutual funds, primarily equity securities 21,906 26,821 ------------ ------------ 252,168 277,359 Interest and dividends 57,377 43,784 ------------ ------------ $ 309,545 $ 321,143 ------------ ------------ ------------ ------------ 9 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, 1996 and 1995, the Plan's interest in the net assets of the master trust was approximately 0.72%. The contract value of the GICs for the master trust was approximately $17.6 million and $20.9 million at December 31, 1996 and 1995, respectively. 5. PARTIES-IN-INTEREST TRANSACTIONS There were no prohibited party-in-interest transactions during the years ended December 31, 1996 and 1995. 6. INFORMATION PROVIDED BY TRUSTEES Plan funds are held in trust by trustees for the sole purpose of making investments, plan payments, and paying trust operating expenses. Trustees appointed by the Honeywell Pension and Retirement Committee as of December 31, 1996 were T. Rowe Price Trust 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 $0 and $10,154 as of December 31, 1996 and 1995, 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 represented 5% or more of net assets available for benefits as of December 31, 1996 and 1995. 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 INVESTMENT PLAN Dated: June 26, 1997 By: /s/ Jim Porter ---------------------------------- 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- 44282 of the Honeywell Retirement Investment Plan on Form S-8 of our report dated June 20, 1997, appearing in this Annual Report on Form 11-K of the Honeywell Retirement Investment Plan for the year ended December 31, 1996. Minneapolis, Minnesota June 20, 1997 -----END PRIVACY-ENHANCED MESSAGE-----