<PAGE>
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.
<PAGE>
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
<PAGE>
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
<PAGE>
HONEYWELL RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 1993 AND 1992 AND INDEPENDENT
AUDITORS' REPORT
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1993
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
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
------------ ------------ ---------- ---------- ------------ ------------
------------ ------------ ---------- ---------- ------------ ------------
<CAPTION>
(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
<S> <C> <C> <C> <C> <C> <C>
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
------------ ------------ ---------- ---------- ------------ ------------
------------ ------------ ---------- ---------- ------------ ------------
<CAPTION>
(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
<S> <C> <C> <C> <C> <C> <C>
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
------------ ------------ ---------- ---------- ------------ ------------
------------ ------------ ---------- ---------- ------------ ------------
</TABLE>
See notes to financial statements.
3
<PAGE>
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1992
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------
GOVERNMENT SHORT-TERM STOCKS
COMBINED INCOME BOND PLUS S&P 500
TOTAL FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
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
----------- ----------- -------- ----------- -----------
----------- ----------- -------- ----------- -----------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
----------------------------------------------------------
FIXED HONEYWELL
INCOME STOCK ISOLATED PARTICIPANT
FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C>
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
----------- ---------- ---------- --------
----------- ---------- ---------- --------
</TABLE>
See notes to financial statements.
4
<PAGE>
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1993
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
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
----------- ----------- -------- -------- ----------- -----------
----------- ----------- -------- -------- ----------- -----------
<CAPTION>
(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
<S> <C> <C> <C> <C> <C> <C>
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
---------- ---------- -------- -------- -------- -------
---------- ---------- -------- -------- -------- -------
<CAPTION>
(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
<S> <C> <C> <C> <C> <C> <C>
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
-------- -------- -------- -------- ---------- ----------
-------- -------- -------- -------- ---------- ----------
</TABLE>
See notes to financial statements.
5
<PAGE>
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1992
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
------------------------------------------------------------------------
GOVERNMENT SHORT-TERM STOCKS
COMBINED INCOME BOND PLUS S&P 500
TOTAL FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
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
----------- ----------- -------- ----------- -----------
----------- ----------- -------- ----------- -----------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
----------------------------------------------------------
FROZEN HONEYWELL
FIXED STOCK ISOLATED PARTICIPANT
FUND FUND FUND LOANS
<S> <C> <C> <C> <C>
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
----------- ---------- ---------- --------
----------- ---------- ---------- --------
</TABLE>
See notes to financial statements.
6
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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:
<TABLE>
<CAPTION>
1993 1992
<S> <C> <C>
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
-------------- ------------
-------------- ------------
<FN>
(a) at contract value
</TABLE>
Investment income for master trust is as follows:
<TABLE>
<CAPTION>
1993 1992
<S> <C> <C>
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
------------ ------------
------------ ------------
</TABLE>
10
<PAGE>
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.
- - --------------------------------------------------------------------------------
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