-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, o/wzHmHubZTq1173nBvF+UrB7UNhWuJpr7JOW2jLagf99WkRVNXAOb77RssEG/qk LqzziHppFXLPLLNphvC6yA== 0000912057-94-002193.txt : 19940706 0000912057-94-002193.hdr.sgml : 19940706 ACCESSION NUMBER: 0000912057-94-002193 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HONEYWELL INC CENTRAL INDEX KEY: 0000048305 STANDARD INDUSTRIAL CLASSIFICATION: 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: 001-00971 FILM NUMBER: 94537075 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 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, 1993 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 Number 33-44283 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 11 hereof are the Honeywell Retirement Savings Plan Financial Statements for the Years Ended December 31, 1993 and 1992 prepared by the firm of Deloitte & Touche, Independent Auditors. 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 29, 1994 By: /s/ Deborah W. Veverka -------------------------- Deborah W. Veverka Its: Vice President, Pension Fund Investments INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Registration Statement No. 33-44283 of the Honeywell Retirement Savings Plan on Form S-8 of our report dated June 22, 1994, appearing in this Annual Report Form 11-K of the Honeywell Retirement Savings Plan for the year ended December 31, 1993. /s/ Deloitte & Touche Minneapolis, Minnesota June 29, 1994 HONEYWELL RETIREMENT SAVINGS PLAN FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 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, December 31, 1993 and 1992 3 Statements of Changes in Net Assets Available for Benefits, Years Ended December 31, 1993 and 1992 5 Notes to Financial Statements 7 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, 1993 and 1992 and for the years then ended, listed in the 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. These 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 report dated May 21, 1993, we expressed an opinion that the 1992 financial statements did not present fairly the net assets available for benefits and the changes in net assets available for benefits in conformity with generally accepted accounting principles because the Plan's investments in certain guaranteed investment contracts with insurance companies were reflected in the financial statements at contract value as determined by the issuing insurance companies; the Plan's management had not been able to determine the amount that would ultimately be realized for such investment contracts, and that amount, when determined, could be significantly less than the recorded contract values. As discussed in Note 3 to the financial statements, subsequent distributions under a Rehabilitation Plan, the Plan's current estimates of additional distributions, and recoveries from various state guaranty funds will result, in the view of Plan management, in ultimately realizing amounts that will not be significantly less than the contract values. Accordingly, our present opinion on the 1992 financial statements, as expressed herein, is different from that expressed in our prior report on the previously issued 1992 financial statements. In our opinion, the accompanying financial statements present fairly, in all material respects, the net assets available for benefits as of December 31, 1993 and 1992 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 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. June 22, 1994 2 HONEYWELL RETIREMENT SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1993 - - --------------------------------------------------------------------------------
(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 $ 61,498,472 $ 16,685,897 $ 361,946 $ 949,136 $ 11,860,336 $ 12,536,561 Contributions receivable 166,978 48,190 3,559 4,861 35,825 41,246 Other receivables 107,480 46,260 3,864 3,236 16,677 17,244 Due from other plans 21,719 14,427 73 7,178 ------------ ------------ ---------- --------- ------------ ------------ Total assets 61,794,649 16,794,774 369,369 957,233 11,912,911 12,602,229 LIABILITIES: Administration fees payable 32,474 9,214 326 966 7,557 7,731 Other payables 97,183 46,033 3,859 2,966 18,821 21,485 ------------ ------------ ---------- ---------- ------------ ------------ Total liabilities 129,657 55,247 4,185 3,932 26,378 29,216 ------------ ------------ ---------- ---------- ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 61,664,992 $ 16,739,527 $ 365,184 $ 953,301 $ 11,886,533 $ 12,573,013 ------------ ------------ ---------- ---------- ------------ ------------ ------------ ------------ ---------- ---------- ------------ ------------ (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 $ 8,465,082 $ 2,761,767 $ 178,844 $ 638,348 $ 441,060 $ 65,599 Contributions receivable 11,684 1,101 9,908 2,639 368 Other receivables 19,113 164 457 465 Due from other plans 41 ------------ ------------ ---------- ---------- ------------ ------------ Total assets 8,484,236 2,773,615 179,945 648,713 444,164 65,967 LIABILITIES: Administration fees payable 4,670 890 64 232 176 22 Other payables 4,019 ------------ ------------ ---------- ---------- ------------ ------------ Total liabilities 8,689 890 64 232 176 22 ------------ ------------ ---------- ---------- ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 8,475,547 $ 2,772,725 $ 179,881 $ 648,481 $ 443,988 $ 65,945 ------------ ------------ ---------- ---------- ------------ ------------ ------------ ------------ ---------- ---------- ------------ ------------ (SUPPLEMENTAL INFORMATION BY FUND) ---------------------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE PRICE PRICE SCUDDER PRICE SMALL CAP EQUITY INTERNATIONAL INTERNATIONAL VALVE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUND FUND ASSETS: Investments in Honeywell- Master Trusts $ 313,207 $ 725,074 $ 135,111 $ 516,954 $ 3,738,846 $ 1,124,704 Contributions receivable 1,785 3,461 264 2,087 Other receivables Due from other plans ------------ ------------ ---------- ---------- ------------ ------------ Total assets 314,992 728,535 135,375 519,041 3,738,846 1,124,704 LIABILITIES: Administration fees payable 118 282 50 176 Other payables ------------ ------------ ---------- ---------- Total liabilities 118 282 50 176 ------------ ------------ ---------- ---------- ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 314,874 $ 728,253 $ 135,325 $ 518,865 $ 3,738,846 $ 1,124,704 ------------ ------------ ---------- ---------- ------------ ------------ ------------ ------------ ---------- ---------- ------------ ------------
See notes to financial statements. 3 HONEYWELL RETIREMENT SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1992 - - -------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND) -------------------------------------------------------- GOVERNMENT SHORT-TERM STOCKS COMBINED INCOME BOND PLUS S&P 500 TOTAL FUND FUND FUND FUND ASSETS: Cash and cash equivalents $ 4,402,732 Investments 52,729,647 $12,591,748 $ 8,273 $10,507,123 $11,650,345 Due from (to) other funds 2,550,044 329,567 (164,660) 221,221 ----------- ----------- -------- ----------- ----------- Total assets 57,132,379 15,141,792 337,840 10,342,463 11,871,566 LIABILITIES: Distributions payable 533,146 138,684 114,770 47,974 Trustees' fees payable 21,854 3,048 30 13,987 1,417 Due to (from) other plans 9,109 (33) (2,240) 11,664 Participant loans payable 43,400 ----------- ----------- -------- ----------- ----------- Total liabilities 607,509 141,699 30 126,517 61,055 ----------- ----------- -------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $56,524,870 $15,000,093 $337,810 $10,215,946 $11,810,511 ----------- ----------- -------- ----------- ----------- ----------- ----------- -------- ----------- ----------- (SUPPLEMENTAL INFORMATION BY FUND) ---------------------------------------------------------- FIXED HONEYWELL INCOME STOCK ISOLATED PARTICIPANT FUND FUND FUNDS LOANS ASSETS: Cash and cash equivalents $ 4,402,732 Investments 10,286,432 $2,319,186 $4,487,026 $879,514 Due from (to) other funds (3,115,052) 151,755 27,125 ----------- ---------- ---------- -------- Total assets 11,574,112 2,470,941 4,514,151 879,514 LIABILITIES: Distributions payable 219,421 12,297 Trustees' fees payable 3,010 362 Due to (from) other plans (282) Participant loans payable 43,400 ----------- ---------- -------- Total liabilities 222,431 12,377 43,400 ----------- ---------- ---------- -------- NET ASSETS AVAILABLE FOR BENEFITS $11,351,681 $2,458,564 $4,514,151 $836,114 ----------- ---------- ---------- -------- ----------- ---------- ---------- --------
See notes to financial statements. 4 HONEYWELL RETIREMENT SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1993 - - -------------------------------------------------------------------------------
(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 $ 4,381,034 480,646 $ 18,731 $ 46,240 $ 1,471,625 $ 1,172,230 CONTRIBUTIONS: Employee pretax contributions 3,816,644 1,197,070 87,051 121,396 892,946 1,073,871 Rollover contributions 390,643 102,561 14,266 16,674 56,275 81,844 ----------- ----------- -------- -------- ----------- ----------- Total contributions 4,207,287 1,299,631 101,317 138,070 949,221 1,155,715 TRANSFERS FROM (TO) OTHER FUNDS 1,233,074 (67,648) 788,898 (118,781) (960,248) TRANSFERS FROM (TO) OTHER PLANS (106,504) (29,216) (6,718) (6,348) (13,504) (18,459) ----------- ----------- -------- -------- ----------- ----------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS AND TRANSFERS 8,481,817 2,984,135 45,682 966,860 2,288,561 1,349,238 LOANS: Repayments 185,568 8,276 4,137 96,792 110,888 Distributions (163,114) (12,202) (3,675) (156,047) (158,218) DISTRIBUTIONS TO PARTICIPANTS (3,221,808) (1,236,699) (13,254) (10,888) (522,264) (513,069) TRUSTEES AND ADMINISTRATIVE FEES (119,887) (30,456) (1,128) (3,133) (36,455) (26,337) ----------- ----------- -------- -------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS 5,140,122 1,739,434 27,374 953,301 1,670,587 762,502 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 56,524,870 15,000,093 337,810 10,215,946 11,810,511 ----------- ----------- -------- -------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $61,664,992 $16,739,527 $365,184 $953,301 $11,886,533 $12,573,013 ----------- ----------- -------- -------- ----------- ----------- ----------- ----------- -------- -------- ----------- ----------- (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 IN MASTER TRUSTS $ 756,790 $ 177,101 $ 10,468 $ 25,193 $ 26,846 $ 2,387 CONTRIBUTIONS: Employee pretax contributions 317,185 8,883 36,072 19,175 3,345 Rollover contributions 26,640 10,161 47,423 4,412 7,242 ---------- -------- -------- -------- ------- Total contributions 343,825 19,044 83,495 23,587 10,587 TRANSFERS FROM (TO) OTHER FUNDS (2,677,882) (74,887) 153,664 549,875 395,738 55,382 TRANSFERS FROM (TO) OTHER PLANS (28,618) 2,221 ---------- ---------- -------- -------- -------- ------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS AND TRANSFERS (1,949,710) 448,260 183,176 658,563 446,171 68,356 LOANS: Repayments 43,068 421 2,836 1,098 386 Distributions (112,153) (58,822) (2,024) (9,331) (2,137) (2,744) DISTRIBUTIONS TO PARTICIPANTS (797,082) (115,323) (1,561) (3,061) (845) TRUSTEES AND ADMINISTRATIVE FEES (17,189) (3,022) (131) (526) (299) (53) ---------- ---------- -------- -------- -------- ------- INCREASE (DECREASE) IN NET ASSETS (2,876,134) 314,161 179,881 648,481 443,988 65,945 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 11,351,681 2,458,564 ---------- ---------- -------- -------- -------- ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $8,475,547 $2,772,725 $179,881 $648,481 $443,988 $65,945 ---------- ---------- -------- -------- -------- ------- ---------- ---------- -------- -------- -------- ------- (SUPPLEMENTAL INFORMATION BY FUND) -------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE PRICE PRICE SCUDDER PRICE SMALL CAP EQUITY INTERNATIONAL INTERNATIONAL VALVE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $ 32,993 $ 70,050 $ 6,646 $24,144 $ 58,944 CONTRIBUTIONS: Employee pretax contributions 10,162 19,904 3,316 26,268 Rollover contributions 7,822 8,295 7,028 -------- -------- -------- -------- Total contributions 17,984 28,199 3,316 33,296 TRANSFERS FROM (TO) OTHER FUNDS 266,759 633,597 125,371 466,531 $ (769,443) TRANSFERS FROM (TO) OTHER PLANS (5,862) -------- -------- -------- -------- ---------- ---------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS AND TRANSFERS 317,736 731,846 135,333 523,971 (775,305) 58,944 LOANS: Repayments 975 1,134 69 1,607 (457,255) Distributions (243) (1,197) (4,994) 686,901 DISTRIBUTIONS TO PARTICIPANTS (3,373) (3,086) (1) (1,302) TRUSTEES AND ADMINISTRATIVE FEES (221) (444) (76) (417) -------- -------- -------- -------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS 314,874 728,253 135,325 518,865 (775,305) 288,590 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 4,514,151 836,114 -------- -------- -------- -------- ---------- ---------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $314,874 $728,253 $135,325 $518,865 $3,738,846 $1,124,704 -------- -------- -------- -------- ---------- ---------- -------- -------- -------- -------- ---------- ----------
See notes to financial statements. 5 HONEYWELL RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1992 - - -------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND) ------------------------------------------------------------------------ GOVERNMENT SHORT-TERM STOCKS COMBINED INCOME BOND PLUS S&P 500 TOTAL FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $ 3,378,458 $ 462,266 $ 40 $ 852,644 $ 834,467 CONTRIBUTIONS: Employee: After tax 555,730 105,684 1,409 122,543 146,912 Pretax 3,511,506 664,425 10,998 775,068 1,034,685 Rollover 6,949 ----------- ----------- -------- ----------- ----------- Total contributions 4,074,185 770,109 12,407 897,611 1,181,597 TRANSFERS FROM OTHER FUNDS 1,677,278 324,585 680,954 (111,130) TRANSFERS FROM (TO) OTHER PLANS 108,375 12,768 10,288 52,601 ----------- ----------- -------- ----------- ----------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 7,561,018 2,922,421 337,032 2,441,497 1,957,535 LOANS: Repayments 66,909 809 71,409 93,929 Distributions (106,408) (111,166) (112,424) DISTRIBUTIONS TO PARTICIPANTS (5,535,251) (1,515,579) (812,650) (1,066,451) TRUSTEES' AND ADMINISTRATIVE FEES (125,373) (25,014) (31) (54,743) (14,032) ----------- ----------- -------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS 1,900,394 1,342,329 337,810 1,534,347 858,557 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 54,624,476 13,657,764 8,681,599 10,951,954 ----------- ----------- -------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $56,524,870 $15,000,093 $337,810 $10,215,946 $11,810,511 ----------- ----------- -------- ----------- ----------- ----------- ----------- -------- ----------- ----------- (SUPPLEMENTAL INFORMATION BY FUND) ---------------------------------------------------------- FROZEN HONEYWELL FIXED STOCK ISOLATED PARTICIPANT FUND FUND FUND LOANS NET INVESTMENT INCOME IN MASTER TRUSTS $ 1,156,759 $ 21,338 $ 50,944 CONTRIBUTIONS: Employee: After tax 136,748 42,434 Pretax 784,743 241,587 Rollover 6,949 ----------- ---------- Total contributions 928,440 284,021 TRANSFERS FROM OTHER FUNDS (3,465,923) 894,236 TRANSFERS FROM (TO) OTHER PLANS 15,875 13,358 $ 3,485 ----------- ---------- ---------- -------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS (1,364,849) 1,212,953 3,485 50,944 LOANS: Repayments 71,216 20,392 (324,664) Distributions (124,818) (33,171) 487,987 DISTRIBUTIONS TO PARTICIPANTS (1,930,555) (210,016) TRUSTEES' AND ADMINISTRATIVE FEES (28,647) (2,906) ----------- ---------- ---------- -------- INCREASE (DECREASE) IN NET ASSETS (3,377,653) 987,252 3,485 214,267 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 14,729,334 1,471,312 4,510,666 621,847 ----------- ---------- ---------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $11,351,681 $2,458,564 $4,514,151 $836,114 ----------- ---------- ---------- -------- ----------- ---------- ---------- --------
See notes to financial statements. 6 HONEYWELL RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1993 AND 1992 - - -------------------------------------------------------------------------------- 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 was amended effective June 30, 1991 to adopt the procedures, terms, and conditions for the granting and administration of loans to participants. These procedures allow 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 7 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. 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 individual 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 individual 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 funds: 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 - The fund is diversified among U.S. Treasury bills, high quality intermediate- and long-term (1-10 years) bonds and domestic stocks. STOCKS PLUS FUND - The 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 - The 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 - The fund primarily invests 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 - The Fund primarily invests in a combination of large, familiar corporations and small, rapidly emerging companies. 8 COLUMBIA SPECIAL FUND - Invests primarily in smaller companies with capitalizations that are less than the average for the companies included in the Standard and Poor's 500 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 - Fund intends to diversify its foreign investments among several countries and to not concentrate investments in any particular industry. 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 - Primarily invests in common stocks of small, rapidly growing companies. T. ROWE PRICE EQUITY INCOME FUND - Primarily invests 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 ERISA. In the event of Plan termination, participates shall be 100% vested in their accounts. 3. INVESTMENT IN EXECUTIVE LIFE INSURANCE COMPANY (EXECUTIVE LIFE) At December 31, 1993 and 1992, the Plan's Isolated funds primarily consisted of investments in Executive Life guaranteed investment contracts (GICs), approximately .87% 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 and 1994, distributions have been received from the Conservator totaling approximately 56% of the contract balance immediately prior to the Conservatorship. Further, the Plan's management 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 financial statements. 9 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 Inc. 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, 1993 and 1992, the Plan's interest in the net assets of the master trusts was approximately 5% Investment income and administrative expenses related to the master trusts 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:
1993 1992 Investments at fair value: Custom Funds: Government Income Fund $ 209,624,454 $159,974,586 Short-term Bond Fund 13,255,684 184,190 Bonds Plus Fund 19,587,985 Stocks Plus Fund 252,637,838 232,174,164 S&P 500 Fund 240,823,722 237,762,142 Fixed Income Fund (a) 124,019,602 221,316,509 Honeywell Stock Fund 157,920,810 122,369,698 Mutual Funds, primarily equity securities 91,770,887 Participants' loans 24,145,987 20,995,050 -------------- ------------ $1,133,786,969 $994,776,339 -------------- ------------ -------------- ------------ (a) at contract value
Investment income for master trust is as follows:
1993 1992 Net appreciation in fair value of investments: Custom Funds: Short-term Bond Fund $ 564,780 $ 972 Bonds Plus Fund 827,967 Stocks Plus Fund 31,291,545 7,306,707 S&P 500 Fund 23,377,943 10,356,830 Honeywell Stock Fund 4,481,379 272,889 Mutual Funds, primarily equity securities 1,305,188 ------------ ------------ 61,848,802 17,937,398 Interest and dividends 28,245,232 45,478,823 ------------ ------------ $ 90,094,034 $ 63,416,221 ------------ ------------ ------------ ------------
10 In 1993, the Plan's Sponsor transferred the guaranteed investment contracts issued by Executive Life Insurance Company 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 Inc. sponsored retirement plans. Each participating retirement plan has an undivided interest in the master trust. At December 31, 1993, the Plan's interest in the net assets of the master trust was approximately 6%. The contract value of the guaranteed investment contracts for the master trust was $67,277,792 at December 31, 1993. In 1992, these assets were held in a master trust with IDS Trust Company. The Plan's interest in the net assets of the master trust was approximately 6% as of December 31, 1992. The contract value of the guaranteed investment contracts for the master trust was $81,093,903 at December 31, 1992. 5. PARTIES-IN-INTEREST TRANSACTIONS There were no prohibited party-in-interest transactions during the years ended December 31, 1993 and 1992. 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, 1993 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 (decrease) increase in the amount of net assets reported by the Trustees of $(1,034,745) and $872,822 as of December 31, 1993 and 1992, 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, Frozen Fixed Income fund, Isolated funds, and S&P 500 fund individually represent 5% or more of net assets available for benefits. - - -------------------------------------------------------------------------------- 11 -----END PRIVACY-ENHANCED MESSAGE-----