-----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, kSSEL59XuBiUyY7yyL7U1PkN++KubdqsCkXFbgN6JJxN//N2x4da9brmBfGbzWDf z9cbq9cWTmErA3NFRBB7oA== 0000912057-94-002194.txt : 19940706 0000912057-94-002194.hdr.sgml : 19940706 ACCESSION NUMBER: 0000912057-94-002194 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: 94537089 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, 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 33-44282 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 1 to 12 hereof are the Honeywell Retirement Investment 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 INVESTMENT 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. 33-44282 of the Honeywell Retirement Investment Plan on Form S-8 of our report dated June 22, 1994, appearing in this Annual Report on Form 11-K of the Honeywell Retirement Investment Plan for the year ended December 31, 1993. Deloitte & Touche Minneapolis, Minnesota June 29, 1994 HONEYWELL RETIREMENT INVESTMENT PLAN FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992, 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, 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 Investment Plan We have audited the accompanying financial statements of Honeywell Retirement Investment 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 HONEYWELL RETIREMENT INVESTMENT 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 Master Trusts $3,492,111 $504,147 $15,668 $8,462 $1,062,342 $440,948 Contributions receivable 14,787 2,933 295 99 1,670 1,297 Other receivables 4,468 1,398 167 29 1,493 607 Due (to) from other plans (424) (172) (145) (64) ---------- -------- ------- ------ ---------- -------- Total assets 3,510,942 508,306 16,130 8,590 1,065,360 442,788 LIABILITIES: Administration fees payable 1,470 281 14 9 681 274 Other payables 4,202 1,398 165 21 1,686 764 ---------- -------- ------- ------ ---------- -------- Total liabilities 5,672 1,679 179 30 2,367 1,038 ---------- -------- ------- ------ ---------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $3,505,270 $506,627 $15,951 $8,560 $1,062,993 $441,750 ---------- -------- ------- ------ ---------- -------- ---------- -------- ------- ------ ---------- -------- (SUPPLEMENTAL INFORMATION BY FUND) -------------------------------------------------------------------------- FROZEN FIXED HONEYWELL COLUMBIA SCUDDER INCOME STOCK JANUS SPECIAL INTERNATIONAL FUND FUND FUND FUND FUND ASSETS: Investments in Master Trusts $342,667 $587,762 $7,202 $8,898 $5,343 Contributions receivable 7,850 344 56 Other receivables 774 Due (to) from other plans (43) -------- -------- ------ ------ ------ Total assets 343,398 595,612 7,202 9,242 5,399 LIABILITIES: Administration fees payable 192 3 3 2 Other payables 168 -------- ------ ------ ------ Total liabilities 360 3 3 2 -------- -------- ------ ------ ------ NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $343,038 $595,612 $7,199 $9,239 $5,397 -------- -------- ------ ------ ------ -------- -------- ------ ------ ------ (SUPPLEMENTAL INFORMATION BY FUND) -------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE PRICE PRICE PRICE SMALL CAP EQUITY INTERNATIONAL VALVE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUNDS LOANS ASSETS: Investments in Master Trusts $12,159 $3,034 $12,288 $375,593 $105,598 Contributions receivable 185 58 Other receivables Due (to) from other plans ------- ------ ------- -------- -------- Total assets 12,344 3,034 12,346 375,593 105,598 LIABILITIES: Administration fees payable 6 1 4 Other payables ------- ------ ------- Total liabilities 6 1 4 ------- ------ ------- -------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $12,338 $3,033 $12,342 $375,593 $105,598 ------- ------ ------- -------- -------- ------- ------ ------- -------- --------
See notes to financial statements. 3 HONEYWELL RETIREMENT INVESTMENT 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 $ 191,445 Investments 2,867,176 $269,104 $ 260 $914,790 $237,762 Due from (to) other funds 148,971 7,258 (16,804) 3,687 Due from other plans 116,052 115,834 Contributions receivable 13,406 190 ---------- -------- ------ -------- -------- Total assets 3,188,079 418,075 7,518 897,986 357,473 LIABILITIES: Distributions payable 10,726 2,784 2 Trustees' fees payable 1,588 66 1,294 41 Participant loans payable 10,700 ---------- -------- ------ -------- -------- Total liabilities 23,014 2,850 2 1,294 41 ---------- -------- ------ -------- -------- NET ASSETS AVAILABLE FOR BENEFITS $3,165,065 $415,225 $7,516 $896,692 $357,432 ---------- -------- ------ -------- -------- ---------- -------- ------ -------- -------- (SUPPLEMENTAL INFORMATION BY FUND) -------------------------------------------------------------------------- FROZEN HONEYWELL PERFORMANCE FIXED STOCK STOCK MATCH ISOLATED PARTICIPANT FUND FUND FUND FUNDS LOANS ASSETS: Cash and cash equivalents $ 191,445 Investments 445,318 $345,679 $125,613 $456,913 $71,737 Due from (to) other funds (200,215) 57,103 Due from other plans 218 Contributions receivable 149 13,067 ---------- -------- ------ -------- -------- Total assets 436,697 403,000 138,680 456,913 71,737 LIABILITIES: Distributions payable 545 1,404 (438) 6,429 Trustees' fees payable 131 56 Participant loans payable 10,700 ---------- -------- ------ -------- -------- Total liabilities 676 1,460 (438) 6,429 10,700 ---------- -------- ------ -------- -------- NET ASSETS AVAILABLE FOR BENEFITS $436,021 $401,540 $139,118 $450,484 $61,037 ---------- -------- ------ -------- -------- ---------- -------- ------ -------- --------
See notes to financial statements. 4 HONEYWELL RETIREMENT INVESTMENT 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 $ 246,993 $13,685 $ 646 $ 302 $ 133,513 $ 38,135 CONTRIBUTIONS: Employee pretax contributions 170,131 60,675 5,739 2,531 37,806 25,468 Employer stock match 33,220 ---------- -------- ------- ------ ---------- -------- Total contributions 203,351 60,675 5,739 2,531 37,806 25,468 TRANSFERS (TO) FROM OTHER FUNDS 45,715 (58) 5,811 44,165 39,338 TRANSFERS FROM (TO) OTHER PLANS 42,127 (213) 31,722 4,581 ---------- -------- ------- ------ ---------- -------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS AND TRANSFERS 492,471 119,862 6,327 8,644 247,206 107,522 LOANS: Repayments 23,660 2,191 87 6,528 7,925 Distributions (18,166) (40) (30,944) (4,200) DISTRIBUTIONS TO PARTICIPANTS (145,758) (33,066) (148) (53,182) (26,027) TRUSTEES' AND ADMINISTRATIVE FEES (6,508) (888) (43) (23) (3,307) (902) ---------- -------- ------- ------ ---------- -------- INCREASE (DECREASE) IN NET ASSETS 340,205 91,402 8,435 8,560 166,301 84,318 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 3,165,065 415,225 7,516 896,692 357,432 ---------- -------- ------- ------ ---------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $3,505,270 $506,627 $15,951 $8,560 $1,062,993 $441,750 ---------- -------- ------- ------ ---------- -------- ---------- -------- ------- ------ ---------- -------- (SUPPLEMENTAL INFORMATION BY FUND) -------------------------------------------------------------------------- FROZEN FIXED HONEYWELL COLUMBIA SCUDDER INCOME STOCK JANUS SPECIAL INTERNATIONAL FUND FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $ 29,858 $ 27,119 $ 25 $ 109 $ 3 CONTRIBUTIONS: Employee pretax contributions 36,316 538 151 Employer stock match 33,220 -------- ------ ------ Total contributions 69,536 538 151 TRANSFERS (TO) FROM OTHER FUNDS (82,231) (24,716) 7,179 8,567 5,245 TRANSFERS FROM (TO) OTHER PLANS (899) 4,309 -------- -------- ------ ------ ------ TOTAL INVESTMENT INCOME, CONTRIBUTIONS AND TRANSFERS (53,372) 76,248 7,204 9,214 5,399 LOANS: Repayments 8,861 61 Distributions (17,709) (17,408) (27) DISTRIBUTIONS TO PARTICIPANTS (21,213) (12,122) TRUSTEES' AND ADMINISTRATIVE FEES (689) (625) (5) (9) (2) -------- -------- ------ ------ ------ INCREASE (DECREASE) IN NET ASSETS (92,983) 54,954 7,199 9,239 5,397 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 436,021 540,658 -------- -------- ------ ------ ------ NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $343,038 $595,612 $7,199 $9,239 $5,397 -------- -------- ------ ------ ------ -------- -------- ------ ------ ------ (SUPPLEMENTAL INFORMATION BY FUND) -------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE PRICE PRICE PRICE SMALL CAP EQUITY INTERNATIONAL VALVE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUNDS LOANS NET INVESTMENT INCOME IN MASTER TRUSTS $ 352 $ 96 $ 217 $ 2,933 CONTRIBUTIONS: Employee pretax contributions 601 306 Employer stock match --------- ------- Total contributions 601 306 TRANSFERS (TO) FROM OTHER FUNDS 12,815 2,938 12,850 $(77,518) TRANSFERS FROM (TO) OTHER PLANS 2,627 ------- ------ ------- -------- -------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS AND TRANSFERS 13,768 3,034 13,373 (74,891) 2,933 LOANS: Repayments 12 47 (49,372) Distributions (1,434) (1,072) 91,000 DISTRIBUTIONS TO PARTICIPANTS TRUSTEES' AND ADMINISTRATIVE FEES (8) (1) (6) ------- ------ ------- -------- -------- INCREASE (DECREASE) IN NET ASSETS 12,338 3,033 12,342 (74,891) 44,561 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 450,484 61,037 ------- ------ ------- -------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $12,338 $3,033 $12,342 $375,593 $105,598 ------- ------ ------- -------- -------- ------- ------ ------- -------- --------
See notes to financial statements. 5 HONEYWELL RETIREMENT INVESTMENT PLAN STATEMENTS 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 $ 176,398 $ 8,901 $ 2 $ 83,689 $ 24,992 CONTRIBUTIONS: Employee - after-tax 50,165 17,040 16,324 3,773 Employer: Pretax 155,341 42,462 170 24,191 23,218 Stock match 43,892 ---------- -------- ------ -------- -------- Total contributions 249,398 59,502 170 40,515 26,991 TRANSFERS FROM (TO) OTHER FUNDS 128,570 7,300 (100,246) 15,109 TRANSFERS FROM (TO) OTHER PLANS 762 (26) ---------- -------- ------ -------- -------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 426,558 196,973 7,472 23,958 67,066 LOANS: Repayments 11,323 44 7,496 4,009 Distributions (3,179) (10,668) (7,946) DISTRIBUTIONS TO PARTICIPANTS (344,793) (35,710) (160,709) (2,997) TRUSTEES' AND ADMINISTRATIVE FEES (8,067) (485) (5,406) (372) ---------- -------- ------ -------- -------- INCREASE (DECREASE) IN NET ASSETS 73,698 168,922 7,516 (145,329) 59,760 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 3,091,367 246,303 1,042,021 297,672 ---------- -------- ------ -------- -------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $3,165,065 $415,225 $7,516 $896,692 $357,432 ---------- -------- ------ -------- -------- ---------- -------- ------ -------- -------- (SUPPLEMENTAL INFORMATION BY FUND) -------------------------------------------------------------------------- FROZEN HONEYWELL PERFORMANCE FIXED STOCK STOCK MATCH ISOLATED PARTICIPANT FUND FUND FUND FUNDS LOANS NET INVESTMENT INCOME IN MASTER TRUSTS $ 52,275 $ 1,148 $ 4,149 $ 1,242 CONTRIBUTIONS: Employee - after-tax 8,352 4,676 Employer: Pretax 38,352 26,948 Stock match 43,892 -------- -------- -------- Total contributions 46,704 31,624 43,892 TRANSFERS FROM (TO) OTHER FUNDS (240,541) 189,808 TRANSFERS FROM (TO) OTHER PLANS 146 642 -------- -------- -------- ------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS (141,562) 222,726 48,683 1,242 LOANS: Repayments 6,948 4,708 (34,528) Distributions (13,001) (4,309) 39,103 DISTRIBUTIONS TO PARTICIPANTS (134,169) (3,992) (7,216) TRUSTEES' AND ADMINISTRATIVE FEES (1,322) (428) (54) -------- -------- -------- ------- INCREASE (DECREASE) IN NET ASSETS (283,106) 218,705 41,413 5,817 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 719,127 182,835 97,705 $450,484 55,220 -------- -------- -------- -------- ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $436,021 $401,540 $139,118 $450,484 $61,037 -------- -------- -------- -------- ------- -------- -------- -------- -------- -------
See notes to financial statements. 6 HONEYWELL RETIREMENT INVESTMENT 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 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. This plan 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. 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. (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. 7 (c) The Sponsor contributes between $.25 and $.50 in Honeywell Inc. stock to the participants' Performance Stock Match fund accounts for each $1.00 the participant contributes to their pretax accounts. Such sponsor contribution is limited to a maximum of 4% of the participants' pay. The amount of the sponsor contribution depends upon the Sponsor's Return on Investment (as defined). 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 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 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 classified as a regular full-time or regular part-time employee, 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. 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 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 and intermediate-term (1 - 5 years) maturities. 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. 8 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. JANUS FUND - The Fund primarily invests 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 and Poor's 500 Stock Index. 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 VALVE 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 (GIC's), approximately 1.67% 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 approximating 56% of the contract balance immediately prior to the Conservatorship. 9 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. The Plan's 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 Plans' 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 investments were held in master trusts with various trust companies. Each participating retirement plan has an individed 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 0.3% . 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.
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 Frozen 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 $944,776,339 -------------- ------------ -------------- ------------
(a) at contract value 10 Investment income for master trust is as follows:
1993 1992 Net appreciation of 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 ----------- ----------- ----------- -----------
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 0.6%. 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 0.6% 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 paying trust operating expenses. Trustees appointed by the Honeywell Pension and Retirement Committee as of December 31, 1993 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 a (decrease) 11 increase in the amount of net assets reported by the trustees of $(108,241) and $71,683 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, S&P 500 fund, Honeywell Stock fund, and Frozen Fixed Income fund and Isolated funds individually represent 5% or more of net assets available for benefits. - - -------------------------------------------------------------------------------- 12 -----END PRIVACY-ENHANCED MESSAGE-----