<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 33-44282
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.
<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 INVESTMENT 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.
33-44282 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
<PAGE>
HONEYWELL RETIREMENT INVESTMENT PLAN
FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 1993 AND 1992, AND INDEPENDENT
AUDITORS' REPORT
<PAGE>
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
<PAGE>
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.
<PAGE>
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
<PAGE>
HONEYWELL RETIREMENT INVESTMENT 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 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
---------- -------- ------- ------ ---------- --------
---------- -------- ------- ------ ---------- --------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------------------------
FROZEN
FIXED HONEYWELL COLUMBIA SCUDDER
INCOME STOCK JANUS SPECIAL INTERNATIONAL
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
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
-------- -------- ------ ------ ------
-------- -------- ------ ------ ------
<CAPTION>
(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
<S> <C> <C> <C> <C> <C>
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
------- ------ ------- -------- --------
------- ------ ------- -------- --------
</TABLE>
See notes to financial statements.
3
<PAGE>
HONEYWELL RETIREMENT INVESTMENT 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 $ 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
---------- -------- ------ -------- --------
---------- -------- ------ -------- --------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------------------------
FROZEN HONEYWELL PERFORMANCE
FIXED STOCK STOCK MATCH ISOLATED PARTICIPANT
FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C>
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
---------- -------- ------ -------- --------
---------- -------- ------ -------- --------
</TABLE>
See notes to financial statements.
4
<PAGE>
HONEYWELL RETIREMENT INVESTMENT 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 $ 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
---------- -------- ------- ------ ---------- --------
---------- -------- ------- ------ ---------- --------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------------------------
FROZEN
FIXED HONEYWELL COLUMBIA SCUDDER
INCOME STOCK JANUS SPECIAL INTERNATIONAL
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
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
-------- -------- ------ ------ ------
-------- -------- ------ ------ ------
<CAPTION>
(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
<S> <C> <C> <C> <C> <C>
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
------- ------ ------- -------- --------
------- ------ ------- -------- --------
</TABLE>
See notes to financial statements.
5
<PAGE>
HONEYWELL RETIREMENT INVESTMENT PLAN
STATEMENTS 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 $ 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
---------- -------- ------ -------- --------
---------- -------- ------ -------- --------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------------------------
FROZEN HONEYWELL PERFORMANCE
FIXED STOCK STOCK MATCH ISOLATED PARTICIPANT
FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C>
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
-------- -------- -------- -------- -------
-------- -------- -------- -------- -------
</TABLE>
See notes to financial statements.
6
<PAGE>
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
<PAGE>
(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
<PAGE>
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
<PAGE>
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.
<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
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
-------------- ------------
-------------- ------------
</TABLE>
(a) at contract value
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<PAGE>
Investment income for master trust is as follows:
<TABLE>
<CAPTION>
1993 1992
<S> <C> <C>
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
----------- -----------
----------- -----------
</TABLE>
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
<PAGE>
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.
- - --------------------------------------------------------------------------------
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