-----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, J7imzCRJJbx3b/6UCNeD4wv7YoznwbkU080Kmcc7FU1EFZ/D5gLW/+B+Iy8UAx7o KUzh8t7jNkLmdpuppFP1HA== 0001047469-98-025532.txt : 19980629 0001047469-98-025532.hdr.sgml : 19980629 ACCESSION NUMBER: 0001047469-98-025532 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980626 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: SEC FILE NUMBER: 000-20629 FILM NUMBER: 98655131 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 FORM 11K 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, 1997 OR [ ] Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 For the transition period from to ---------------------- ------------------- Commission File Numbers: 33-44284 and 33-59359 A. Full title of the plan and address of the plan, if different from that of the issuer named below: HONEYWELL SAVINGS AND STOCK OWNERSHIP 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 11 hereof are the Honeywell Investment Plus Plan Financial Statements for the Years Ended December 31, 1997 and 1996 and Supplemental Schedules for the Year Ended December 31, 1997 prepared by the firm of Deloitte & Touche LLP, Independent Auditors. SAVINGS AND STOCK OWNERSHIP PLAN OF HONEYWELL INC. FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 AND INDEPENDENT AUDITORS' REPORT SAVINGS AND STOCK OWNERSHIP PLAN OF HONEYWELL INC. TABLE OF CONTENTS - -------------------------------------------------------------------------------- PAGE INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS: Statements of Net Assets Available for Benefits, December 31, 1997 and 1996 2,3 Statements of Changes in Net Assets Available for Benefits, Years Ended December 31, 1997 and 1996 4,5 Notes to Financial Statements 6 INDEPENDENT AUDITORS' REPORT Honeywell Savings and Stock Ownership Plan We have audited the statements of net assets available for benefits of the Honeywell Savings and Stock Ownership Plan, formerly known as the Investment Plus Plan of Honeywell Inc. (the Plan) as of December 31, 1997 and 1996 and the statements of changes in net assets available for benefits for the years then ended. 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, 1997 and 1996 and the changes in net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information by fund is presented for the purpose of additional analysis of the basic financial statements, rather than to present information regarding the net assets available for benefits and changes in net assets available for benefits of the individual funds. It is not a required part of the basic financial statements. This supplemental information by fund 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 8, 1998 Minneapolis, Minnesota 1 HONEYWELL SAVINGS AND STOCK OWNERSHIP PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1997 (AMOUNTS IN THOUSANDS)
- -------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND --------------------------------------------------------- GOVERNMENT SHORT-TERM COMBINED INCOME BOND BONDS STOCKS S&P TOTAL FUND FUND PLUS FUND PLUS FUND 500 FUND ASSETS: Investment in Master Trusts $2,278,085 $ 350,818 $ 17,049 $ 53,566 $ 334,967 $ 549,751 Investment at First Trust 6,536 Contributions receivable 12,348 175 14 33 174 293 Other receivables 5,153 3,182 134 1,073 5 ---------- ---------- --------- -------- ---------- --------- Total assets 2,302,122 354,175 17,063 53,733 336,214 550,049 LIABILITIES: Administration fees payable 227 32 6 13 64 112 Other payables 5,281 3,174 3 142 1,072 78 ---------- ---------- --------- -------- ---------- --------- Total liabilities 5,508 3,206 9 155 1,136 190 ---------- ---------- --------- -------- ---------- --------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $2,296,614 $ 350,969 $ 17,054 $ 53,578 $ 335,078 $ 549,859 ---------- ---------- --------- -------- ---------- --------- ---------- ---------- --------- -------- ---------- --------- - -------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND ------------------------------------------------------------ HONEYWELL UNITED COLUMBIA VANGUARD STOCK INCOME JANUS TEMPLETON SPECIAL WORLD FUND FUND FUND FUND FUND FUND ASSETS: Investment in Master Trusts $ 485,669 $ 34,497 $ 66,336 $21,565 $41,505 $65,751 Investment at First Trust Contributions receivable 11,236 35 68 22 40 70 Other receivables 10 495 4 151 99 --------- ---------- -------- ------- ------- ------- Total assets 496,915 34,532 66,899 21,591 41,696 65,920 LIABILITIES: Administration fees payable Other payables 145 500 7 160 --------- -------- ------- ------- Total liabilities 145 500 7 160 --------- ---------- -------- ------- ------- ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 496,770 $ 34,532 $ 66,399 $21,584 $41,536 $65,920 --------- ---------- -------- ------- ------- ------- --------- ---------- -------- ------- ------- ------- - ----------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND ------------------------------------------------------------------------- T. ROWE T. ROWE T. ROWE PRICE PRICE PRICE DIVERSIFIED INTER- SMALL EQUITY GROWTH NATIONAL CAP VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUNDS LOANS ASSETS: Investment in Master Trusts $ 56,444 $ 70,323 $ 93,698 $ 36,146 Investment at First Trust $ 6,536 Contributions receivable $ 1 41 66 80 Other receivables -------- -------- -------- -------- ------- --------- Total assets 1 56,485 70,389 93,778 6,536 36,146 LIABILITIES: Administration fees payable Other payables Total liabilities -------- -------- -------- -------- ------- --------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 1 $ 56,485 $ 70,389 $ 93,778 $ 6,536 $ 36,146 -------- -------- -------- -------- ------- --------- -------- -------- -------- -------- ------- ---------
See accompanying notes to financial statements. 2 HONEYWELL SAVINGS AND STOCK OWNERSHIP PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1996 (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND ---------------------------------------------------------- GOVERNMENT SHORT-TERM COMBINED INCOME BOND BONDS STOCKS S&P TOTAL FUND FUND PLUS FUND PLUS FUND 500 FUND ASSETS: Investment in Master Trusts $1,912,127 $ 351,210 $ 14,091 $ 37,137 $ 296,511 $ 403,315 Investment at First Trust 15,508 Contributions receivable 8,533 132 10 22 151 202 Other receivables 3,411 3,211 17 76 98 --------- ---------- --------- -------- ---------- --------- Total assets 1,939,579 354,553 14,101 37,176 296,738 403,615 LIABILITIES: Administration fees payable 232 65 6 12 63 86 Other payables 3,004 2,738 26 89 5 --------- ---------- --------- -------- ---------- --------- Total liabilities 3,236 2,803 6 38 152 91 --------- ---------- --------- -------- ---------- --------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $1,936,343 $ 351,750 $ 14,095 $ 37,138 $ 296,586 $ 403,524 --------- ---------- --------- -------- ---------- --------- --------- ---------- --------- -------- ---------- --------- - --------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND ------------------------------------------------------------- HONEYWELL UNITED COLUMBIA VANGUARD STOCK INCOME JANUS TEMPLETON SPECIAL WORLD FUND FUND FUND FUND FUND FUND ASSETS: Investment in Master Trusts $ 439,471 $ 23,146 $ 56,012 $ 7,865 $48,885 $40,842 Investment at First Trust Contributions receivable 7,717 21 55 8 50 45 Other receivables 3 6 --------- ---------- -------- ------- ------- ------- Total assets 447,191 23,167 56,067 7,873 48,935 40,893 LIABILITIES: Administration fees payable Other payables 2 12 7 18 28 1 --------- ---------- -------- ------- ------- ------- Total liabilities 2 12 7 18 28 1 --------- ---------- -------- ------- ------- ------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 447,189 $ 23,155 $ 56,060 $ 7,855 $48,907 $40,892 --------- ---------- -------- ------- ------- ------- --------- ---------- -------- ------- ------- ------- - --------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND -------------------------------------------------------------- T. ROWE T. ROWE T. ROWE PRICE PRICE PRICE INTER- SMALL EQUITY NATIONAL CAP VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUNDS LOANS ASSETS: Investment in Master Trusts $61,503 $ 38,140 $ 58,530 $35,469 Investment at First Trust $ 15,508 Contributions receivable 40 34 46 Other receivables ------- -------- -------- -------- ------- Total assets 61,543 38,174 58,576 15,508 35,469 LIABILITIES: Administration fees payable Other payables 52 12 14 ------- -------- -------- Total liabilities 52 12 14 ------- -------- -------- -------- ------ NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $61,491 $ 38,162 $ 58,562 $ 15,508 $35,469 ------- -------- -------- -------- ------ ------- -------- -------- -------- ------
See accompanying notes to financial statements. 3 HONEYWELL SAVINGS AND STOCK OWNERSHIP PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1997 (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND ---------------------------------------------------------- GOVERNMENT SHORT-TERM BONDS STOCKS COMBINED INCOME BOND PLUS PLUS S&P 500 TOTAL FUND FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $ 315,024 $ 19,343 $ 1,068 $ 6,684 $ 58,072 $ 136,558 CONTRIBUTIONS: Employer contributions 37,837 10 6 4 3 24 Other (1,047) (46) 40 (57) (662) (446) Employee pretax contributions 108,438 11,945 1,096 3,135 14,067 23,415 --------- ---------- ------- -------- ---------- --------- Total contributions 145,228 11,909 1,142 3,082 13,408 22,993 TRANSFERS (TO) FROM OTHER FUNDS (4,581) 2,253 8,765 (19,987) 6,416 --------- ---------- ------- -------- ---------- --------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 460,252 26,671 4,463 18,531 51,493 165,967 LOANS: Repayments 3,335 183 441 3,088 4,610 Distributions (3,487) (171) (389) (3,002) (4,544) DISTRIBUTIONS TO PARTICIPANTS (96,941) (26,731) (1,467) (2,040) (12,515) (18,797) TRUSTEES' AND ADMINI- STRATIVE FEES (3,040) (569) (49) (103) (572) (901) --------- ---------- ------- -------- ---------- --------- INCREASE (DECREASE) IN NET ASSETS 360,271 (781) 2,959 16,440 38,492 146,335 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 1,936,343 351,750 14,095 37,138 296,586 403,524 --------- ---------- ------- -------- ---------- --------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $2,296,614 $ 350,969 $17,054 $ 53,578 $ 335,078 $ 549,859 --------- ---------- ------- -------- ---------- --------- --------- ---------- ------- -------- ---------- --------- - --------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND -------------------------------------------------------------- HONEYWELL UNITED COLUMBIA VANGUARD STOCK INCOME JANUS TEMPLETON SPECIAL WORLD FUND FUND FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $ 19,111 $ 6,196 $12,237 $ 1,716 $ 4,813 $ 12,169 CONTRIBUTIONS: Employer contributions 37,695 1 13 10 15 Other (676) (1) 41 (5) 18 49 Employee pretax contributions 17,853 2,285 5,949 1,791 4,076 6,387 -------- --------- ------ ------- -------- --------- Total contributions 54,872 2,285 6,003 1,786 4,104 6,451 TRANSFERS (TO) FROM OTHER FUNDS (5,339) 3,830 (5,696) 10,709 (14,757) 8,485 -------- --------- ------ ------- -------- --------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 68,644 12,311 12,544 14,211 (5,840) 27,105 LOANS: Repayments 2,854 389 805 261 563 879 Distributions (2,567) (300) (694) (194) (578) (753) DISTRIBUTIONS TO PARTICIPANTS (18,898) (994) (2,257) (530) (1,477) (2,145) TRUSTEES' AND ADMINI- STRATIVE FEES (452) (29) (59) (19) (39) (58) -------- --------- ------ ------- -------- --------- INCREASE (DECREASE) IN NET ASSETS 49,581 11,377 10,339 13,729 (7,371) 25,028 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 447,189 23,155 56,060 7,855 48,907 40,892 -------- --------- ------ ------- -------- --------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $496,770 $ 34,532 $66,399 $21,584 $ 41,536 $ 65,920 -------- --------- ------ ------- -------- --------- -------- --------- ------ ------- -------- --------- - ------------------------------------------------------------------------------------------------------------ SUPPLEMENTAL INFORMATION BY FUND ------------------------------------------------------------------------ T. ROWE T. ROWE T. ROWE PRICE PRICE DIVERSIFIED PRICE SMALL CAP EQUITY GROWTH INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUNDS LOANS NET INVESTMENT INCOME IN MASTER TRUSTS $ 1,637 $ 12,846 $ 19,541 $ 3,033 CONTRIBUTIONS: Employer contributions 4 12 40 Other 5 4 288 401 Employee pretax contributions $ 1 4,604 5,136 6,617 81 ------- -------- -------- --------- --------- Total contributions 1 4,613 5,152 6,945 482 TRANSFERS (TO) FROM OTHER FUNDS (9,130) 16,151 12,146 $(8,972) (293) ------- -------- -------- --------- ------- --------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 1 (2,880) 34,149 38,632 (8,972) 3,222 LOANS: Repayments 747 605 799 (19,559) Distributions (696) (534) (654) 18,563 DISTRIBUTIONS TO PARTICIPANTS (2,119) (1,939) (3,483) (1,549) TRUSTEES' AND ADMINI- STRATIVE FEES (58) (54) (78) ------- -------- -------- --------- ------- --------- INCREASE (DECREASE) IN NET ASSETS 1 (5,006) 32,227 35,216 (8,972) 677 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 61,491 38,162 58,562 15,508 35,469 ------- -------- -------- --------- ------- --------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 1 $ 56,485 $ 70,389 $ 93,778 $ 6,536 $ 36,146 ------- -------- -------- --------- ------- --------- ------- -------- -------- --------- ------- ---------
See accompanying notes to financial statements. 4 HONEYWELL SAVINGS AND STOCK OWNERSHIP PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1996 (AMOUNTS IN THOUSANDS)
- ---------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND ---------------------------------------------------------- GOVERNMENT SHORT-TERM BONDS STOCKS COMBINED INCOME BOND PLUS PLUS S&P 500 TOTAL FUND FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $ 296,701 $ 16,828 $ 605 $ 2,899 $ 38,705 $ 71,854 CONTRIBUTIONS: Employer contributions 27,018 Rollover contributions 8,627 571 184 391 664 1,121 Employee pretax contributions 81,100 9,240 1,138 2,691 14,546 18,680 --------- ---------- ------- -------- ---------- --------- Total contributions 116,745 9,811 1,322 3,082 15,210 19,801 TRANSFERS (TO) FROM OTHER FUNDS (13,511) (1,484) 4,362 (19,717) (1,510) --------- ---------- ------- -------- ---------- --------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 413,446 13,128 443 10,343 34,198 90,145 LOANS: Repayments 2,927 185 376 2,813 3,766 Distributions (4,314) (192) (365) (3,504) (4,233) DISTRIBUTIONS TO PARTICIPANTS (77,249) (23,021) (889) (1,420) (13,193) (13,644) TRUSTEES' AND ADMINI- STRATIVE FEES (2,003) (478) (41) (70) (433) (545) MERGER FROM RSP 85,291 26,211 532 1,765 13,883 21,838 --------- ---------- ------- -------- ---------- --------- INCREASE (DECREASE) IN NET ASSETS 419,485 14,453 38 10,629 33,764 97,327 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 1,516,858 337,297 14,057 26,509 262,822 306,197 --------- ---------- ------- -------- ---------- --------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $1,936,343 $ 351,750 $14,095 $ 37,138 $ 296,586 $ 403,524 --------- ---------- ------- -------- ---------- --------- --------- ---------- ------- -------- ---------- --------- - ---------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND -------------------------------------------------------------- HONEYWELL UNITED COLUMBIA VANGUARD STOCK INCOME JANUS TEMPLETON SPECIAL WORLD FUND FUND FUND FUND FUND FUND NET INVESTMENT INCOME IN MASTER TRUSTS $116,575 $ 3,719 $8,043 $ 725 $ 4,930 $ 6,524 CONTRIBUTIONS: Employer contributions 27,018 Rollover contributions 960 247 933 50 589 662 Employee pretax contributions 9,372 1,691 4,573 286 4,288 3,235 -------- --------- ------ ------- -------- --------- Total contributions 37,350 1,938 5,506 336 4,877 3,897 TRANSFERS (TO) FROM OTHER FUNDS (1,037) (837) 5,536 6,719 1,875 10,613 -------- --------- ------ ------- -------- --------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS 152,888 4,820 19,085 7,780 11,682 21,034 LOANS: Repayments 1,963 320 631 46 714 558 Distributions (2,535) (218) (578) (44) (664) (432) DISTRIBUTIONS TO PARTICIPANTS (14,333) (615) (1,881) (109) (1,497) (760) TRUSTEES' AND ADMINI- STRATIVE FEES (246) (14) (32) (33) (19) MERGER FROM RSP 7,171 755 1,738 182 1,486 1,204 -------- --------- ------ ------- -------- --------- INCREASE (DECREASE) IN NET ASSETS 144,908 5,048 18,963 7,855 11,688 21,585 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 302,281 18,107 37,097 37,219 19,307 -------- --------- ------ ------- -------- --------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $447,189 $ 23,155 $56,060 $ 7,855 $ 48,907 $ 40,892 -------- --------- ------ ------- -------- --------- -------- --------- ------ ------- -------- --------- - ---------------------------------------------------------------------------------------------------------- SUPPLEMENTAL INFORMATION BY FUND ------------------------------------------------------------------------ T. ROWE T. ROWE T. ROWE PRICE PRICE SCUDDER PRICE SMALL CAP EQUITY ITERNATIONAL INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT FUND FUND FUND FUND FUNDS LOANS NET INVESTMENT INCOME IN MASTER TRUSTS $ 1,136 $ 7,208 $ 6,414 $ 8,534 $ 2,002 CONTRIBUTIONS: Employer contributions Rollover contributions 2 362 405 1,486 Employee pretax contributions 559 4,128 2,871 3,800 2 ------- -------- -------- --------- --------- Total contributions 561 4,490 3,276 5,286 2 TRANSFERS (TO) FROM OTHER FUNDS (16,411) 11,863 7,070 9,472 $(3,003) ------- -------- -------- --------- ------- --------- TOTAL INVESTMENT INCOME, CONTRIBUTIONS, AND TRANSFERS (14,714) 23,561 16,760 23,292 (3,003) 2,004 LOANS: Repayments 90 707 398 606 (16,100) Distributions (98) (695) (359) (538) 18,769 DISTRIBUTIONS TO PARTICIPANTS (315) (2,583) (1,244) (1,695) (50) TRUSTEES' AND ADMINI- STRATIVE FEES (5) (36) (20) (31) MERGER FROM RSP 2,224 947 2,435 1,003 1,917 ------- -------- -------- --------- ------- --------- INCREASE (DECREASE) IN NET ASSETS (15,042) 23,178 16,482 24,069 (2,050) 6,590 NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR 15,042 38,313 21,680 34,493 17,558 28,879 ------- -------- -------- --------- ------- --------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ - $ 61,491 $ 38,162 $ 58,562 $15,508 $ 35,469 ------- -------- -------- --------- ------- --------- ------- -------- -------- --------- ------- ---------
See accompanying notes to financial statements. 5 HONEYWELL SAVINGS AND STOCK OWNERSHIP PLAN NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1997 AND 1996 - ------------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING - The financial statements of the Honeywell Savings and Stock Ownership 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 AMENDMENTS - Prior to January 1, 1997, the Plan was known as the Investment Plus Plan of Honeywell Inc. Effective December 31, 1996, the Retirement Savings Plan, sponsored by Honeywell Inc., was merged into the Investment Plus Plan of Honeywell Inc. Effective January 1, 1997, the Investment Plus Plan of Honeywell Inc. was renamed as the Honeywell Savings and Stock Ownership Plan. Effective January 1, 1997, the DMC 401(k) Plan, which was also sponsored by Honeywell Inc., was merged into the Plan. GENERAL INFORMATION - The plan is a qualified, tax-deferred savings plan designed to provide qualified retirement benefits to Honeywell Inc. employees. The Board of Directors selects the members of the Savings Plan Committee, which is a named fiduciary in the document. The Savings Plan Committee has the authority to take such actions as may be necessary for the administration of the Plan. The Savings Plan Committee appoints the members to the Honeywell Pension and Retirement Administrative Committee and may delegate certain responsibilities to this Committee. 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 salary reduction contribution levels, subject to these limits. 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 distribution to their accounts. (c) All nonunion employees are eligible to receive stock match contributions. The Sponsor contributes between $.50 and $1.00 in Honeywell stock to the participants' Performance stock match fund account for each $1.00 the participants contribute to their pretax account. Such sponsor contribution is limited to a maximum of 5% of the participants' pay. Additional contributions may be made based on the return on investment (as defined) attained by the Plan Sponsor for the respective year. In addition, the Plan Sponsor reserves the right to make additional discretionary contributions. (d) As a plan enhancement, participants are given the option, following the payment of dividends on employer stock allocated to their individual accounts, to elect to contribute as an additional salary reduction contribution an amount equal to dividends paid. The Plan Sponsor has made application for a Private Letter Ruling on this enhancement. LOANS TO PARTICIPANTS - The Plan allows participants to apply for and obtain a loan in an amount as defined in the Plan (in increments of $100, an amount that is not less than $1,000 and not more than the lesser of $50,000 and 50% of their pretax and 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 3 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 and invested pursuant to their current investment election for contributions. Also, participants may have only one outstanding loan at a time. PARTICIPATION - Each nonunion employee of the Sponsor classified as a regular full-time employee or a regular part-time employee scheduled to perform at least 1,000 hours of service during the plan year becomes a participant on the date of hire by the Sponsor or transfer into the Plan. Regular part-time employees scheduled to perform less than 1,000 hours of service during the plan year become participants on the first day of the first enrollment period after performing 1,000 hours of service. In addition, union employees may participate in the plan subject to relevant collective bargaining agreements. VESTING - Participants are 100% vested in their individual accounts attributable to their salary-deferral and rollover 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, attainment of age 65, or upon death or disability. 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. FORFEITURES - All nonvested Plan Sponsor contributions are forfeited by participants when they terminate employment. Such forfeitures are used to restore account balances to certain former employees who return to service within five years of separation. Any remaining forfeitures reduce the Sponsor's matching and profit sharing contributions. 7 INVESTMENT OPTIONS - For contributions, the Plan provides for several investment options. All funds are held by Master Trusts. 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- and intermediate-term (one - five years) maturities. BONDS PLUS FUND - Diversified among U.S. Treasury bills, high-quality intermediate- and long-term (one - ten years) bonds, and domestic stocks. STOCKS PLUS FUND - Invests in domestic stocks that make up the Standard & Poor's 500 Composite Stock Index, high-quality bonds, T. Rowe Price Foreign Equity Fund, and U.S. Treasury bills. S&P 500 FUND - Invests in stocks that make up the Standard & Poor's 500 Composite Stock Index. HONEYWELL STOCK FUND - Invests entirely in shares of Honeywell Inc. common stock. UNITED INCOME FUND - Invests primarily in common stocks of large, well-established companies that pay above-average dividends. The Fund also invests, to a lesser extent, in fixed income securities - both high-quality corporate bonds and U.S. Treasury obligations. JANUS FUND - Invests primarily in a combination of large, established corporations and small, rapidly emerging companies. TEMPLETON FUND - A global stock fund that invests primarily in common stock of companies of any nation and not concentrated in any particular industry. COLUMBIA SPECIAL FUND - Invests primarily in smaller companies with capitalization that is less than the average for the companies included in the Standard & Poor's 500 Stock Index. VANGUARD WORLD 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. DIVERSIFIED GROWTH FUND - Invests primarily in U.S. stocks, and some bonds that are primarily growth oriented but with a small income component and sensitivity to interest rates. SCUDDER INTERNATIONAL FUND - Intends to diversify through foreign investments among several countries and not concentrated in any particular industry. This fund option was replaced in 1996 by the Templeton Fund. T. ROWE PRICE INTERNATIONAL STOCK FUND - Invests primarily in stocks of established companies outside the United States with proven performance records. 8 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 formerly known as the Investment Plus Plan of Honeywell Inc. obtained its latest determination letter in February 1993, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan has been amended since receiving the above mentioned determination letter. However, the plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plan's financial statements. 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 (ERISA). In the event of plan termination, participants shall be 100% vested in their accounts. 3. INVESTMENT IN EXECUTIVE LIFE INSURANCE COMPANY At December 31, 1997 and 1996, the Plan's Isolated Funds primarily consisted of investments in Executive Life Insurance Company (Executive Life) guaranteed investment contracts (GICs), which represented less than 1% of total net assets available for benefits for both years. In 1991, the State of California insurance commissioner seized Executive Life and placed it in a court-supervised conservatorship. Distributions had been received from the conservator totaling approximately 80% of the contract balance immediately prior to the conservatorship. As of the report date, June 8, 1998, the Plan has received 91% of the contract balance. 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 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 Plan's Sponsor 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. INTEREST IN MASTER TRUSTS The Plan's investments are included in Master Trusts with T. Rowe Price Trust Company and First Trust National Association, which were established in 1993 for the investment of assets of the Plan and several other Honeywell-sponsored retirement plans. Previously, the Plan's investments were held in Master Trusts with various trust companies. Each participating plan has an undivided interest in the Master Trusts. At December 31, 1997 and 1996, the Plan's interest in the net assets of the Master Trusts was approximately 99%, in both years. 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. 9 The following table presents the fair value of investments held in Master Trusts (in thousands):
1997 1996 Investments at fair value: Custom funds: Government Income Fund $ 351,626 $ 351,723 Short-Term Bonds Fund 17,050 14,095 Bonds Plus Fund 53,566 37,144 Stocks Plus Fund 335,838 297,488 S&P 500 Fund 550,320 403,903 Honeywell Stock Fund 486,146 440,043 Mutual funds, primarily equity securities 450,322 335,143 Participants' loans 36,203 35,634 -------------- ------------- $ 2,281,071 $ 1,915,173 -------------- ------------- -------------- ------------- Investment income for the Master Trust is as follows (in thousands): Net appreciation in fair value of investments: Custom funds: Short-Term Bond Fund $ 1,063 $ 604 Bonds Plus Fund 6,437 2,874 Stocks Plus Fund 55,009 38,909 S&P 500 Fund 136,367 76,126 Honeywell Stock Fund 18,488 111,749 Mutual funds, primarily equity securities 31,918 21,906 -------------- ------------- 249,282 252,168 Interest and dividends 64,274 57,377 -------------- ------------- $ 313,556 $ 309,545 -------------- ------------- -------------- -------------
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, 1997 and 1996, the Plan's interest in the net assets of the Master Trust was approximately 99% and 90%, respectively. The contract value of the GICs for the Master Trust was approximately $6.6 million and $17.6 million at December 31, 1997 and 1996, respectively. 5. PARTIES-IN-INTEREST TRANSACTIONS There were no prohibited party-in-interest transactions during the periods ended December 31, 1997 and 1996. 6. INFORMATION PROVIDED BY TRUSTEES Plan funds are held in trust by trustees for the sole purpose of making investments and plan payments and paying trust operating expenses. Trustees appointed by the Honeywell Pension and 10 Retirement Committee as of December 31, 1997 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 increases in the amount of net assets reported of $2,134,612 and $8,621,802 as of December 31, 1997 and 1996, respectively. Such adjustments are primarily recorded for the purpose of converting the trustees' statements from the cash basis to the accrual basis of accounting and to reflect the impact of participant loan activity. The Government Income Fund, Stocks Plus Fund, S&P 500 Fund, and Honeywell Stock Fund individually represent 5% or more of net assets available for benefits at December 31, 1997 and 1996, respectively. 11 Exhibit Index Page Exhibit 23.1 -- Independent Auditors' Consent I 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 SAVINGS AND STOCK OWNERSHIP PLAN Dated: June 25, 1998 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. 33-44284 and No. 33-59359 of the Honeywell Savings and Stock Ownership Plan (formerly Investment Plus Plan of Honeywell Inc.) on Form S-8 of our report dated June 8, 1998, appearing in this Annual Report on Form 11-K of the Honeywell Savings and Stock Ownership Plan for the year ended December 31, 1997. Minneapolis, Minnesota June 23, 1998 -----END PRIVACY-ENHANCED MESSAGE-----