<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, 1994
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 33-44284
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 2 to 13 hereof are the Honeywell
Retirement Investment Plan Financial Statements for the Years Ended December 31,
1994 and 1993 and Supplemental Schedules for the Year Ended December 31, 1994
prepared by the firm of Deloitte & Touche LLP, Independent Auditors.
<PAGE>
HONEYWELL RETIREMENT INVESTMENT
PLAN
FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 1994 AND 1993 AND INDEPENDENT
AUDITORS' REPORT
2
<PAGE>
HONEYWELL RETIREMENT INVESTMENT PLAN
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
PAGE
INDEPENDENT AUDITORS' REPORT 4
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits, December 31, 1994
and 1993 5-6
Statements of Changes in Net Assets Available for Benefits, Years Ended
December 31, 1994 and 1993 7-8
Notes to Financial Statements 9
3
<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, 1994 and 1993 and for the years
then ended, listed in the foregoing 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. 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, 1994
and 1993 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.
DELOITTE & TOUCHE LLP
Minneapolis, Minnesota
June 9, 1995
4
<PAGE>
HONEYWELL RETIREMENT INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1994
<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 $ 3,417,002 $ 852,163 $ 21,522 $ 3,790 $ 1,014,503 $ 376,363
Contributions receivable 14,030 2,489 334 15 1,432 1,072
Other receivables 9,075 7,319 3 220
------------ ---------- ---------- ---------- ----------- ----------
Total assets 3,440,107 861,971 21,856 3,808 1,016,155 377,435
LIABILITIES:
Administration fees payable 460 155 7 1 144 89
Other payables 8,942 7,319 4 86
------------ ---------- ---------- ---------- ----------- ----------
Total liabilities 9,402 7,474 7 5 144 175
------------ ---------- ---------- ---------- ----------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 3,430,705 $ 854,497 $ 21,849 $ 3,803 $ 1,016,011 $ 377,260
------------ ---------- ---------- ---------- ----------- ----------
------------ ---------- ---------- ---------- ----------- ----------
<CAPTION>
FROZEN T.ROWE
FIXED HONEYWELL COLUMBIA SCUDDER PRICE
INCOME STOCK JANUS SPECIAL INTERNATIONAL INTERNATIONAL
FUND FUND FUND FUND FUND FUND
ASSETS:
Investments in Master Trusts $ 206,948 $ 454,660 $ 14,880 $ 57,770 $ 17,957 $ 78,336
Contributions receivable 7,695 129 115 115 475
Other receivables 1,533
---------- ---------- ---------- ---------- ---------- ----------
Total assets 208,481 462,355 15,009 57,974 18,072 78,811
LIABILITIES:
Administration fees payable 64
Other payables 1,533
----------
Total liabilities 1,597
---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 206,884 $ 462,355 $ 15,009 $ 57,974 $ 18,072 $ 78,811
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
<CAPTION>
T.ROWE
PRICE PRICE
SMALL CAP EQUITY
VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUNDS LOANS
ASSETS:
Investments in Master Trusts $ 581 $ 5,869 $ 206,595 $ 105,065
Contributions receivable 48 22
Other receivables
Total assets --------- ---------- ---------- ----------
629 5,891 206,595 105,065
LIABILITIES:
Administration fees payable
Other payables
Total liabilities
--------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 629 $ 5,891 $ 206,595 $ 105,065
--------- ---------- ---------- ----------
--------- ---------- ---------- ----------
</TABLE>
See notes to financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
HONEYWELL RETIREMENT INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1993
- -----------------------------------------------------------------------------------------------------------------------------
(Supplemental Information by Fund)
------------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
<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>
FROZEN T. ROWE
FIXED HONEYWELL COLUMBIA SCUDDER PRICE
INCOME STOCK JANUS SPECIAL INTERNATIONAL INTERNATIONAL
FUND FUND FUND FUND FUND FUNDS
ASSETS:
Investments in Master Trusts $ 342,667 $ 587,762 $ 7,202 $ 8,898 $ 5,343 $ 12,159
Contributions receivable 7,850 344 56 185
Other receivables 774
Due (to) from other plans (43)
---------- ---------- ---------- ---------- ---------- ----------
Total assets 343,398 595,612 7,202 9,242 5,399 12,344
LIABILITIES:
Administration fees payable 192 3 3 2 6
Other payables 168
---------- ---------- ---------- ---------- ----------
Total liabilities 360 3 3 2 6
---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 343,038 $ 595,612 $ 7,199 $ 9,239 $ 5,397 $ 12,338
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
<CAPTION>
T. ROWE T. ROWE
PRICE PRICE
SMALL CAP EQUITY
VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUNDS LOANS
ASSETS:
Investments in Master Trusts $ 3,034 $ 12,288 $ 375,593 $ 105,598
Contributions receivable 58
Other receivables
Due (to) from other plans
---------- ---------- ---------- ----------
Total assets 3,034 12,346 375,593 105,598
LIABILITIES:
Administration fees payable 1 4
Other payables
---------- ----------
Total liabilities 1 4
---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 3,033 $ 12,342 $ 375,593 $ 105,598
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
See notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
HONEYWELL RETIREMENT INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
(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 (LOSS)
IN MASTER TRUSTS $ 19,063 $ 30,136 $ (29) $ (114) $ (166) $ 5,087
CONTRIBUTIONS:
Employee pretax contributions 165,852 48,187 5,656 689 33,523 22,200
Employer stock match 26,305
------------- ---------- ---------- ---------- ---------- ----------
Total contributions 192,157 48,187 5,656 689 33,523 22,200
TRANSFERS FROM (TO) OTHER FUNDS - 326,107 (283) (3,579) (25,444) (19,334)
------------- ---------- ---------- ---------- ---------- ----------
TOTAL INVESTMENT INCOME (LOSS),
CONTRIBUTIONS, AND TRANSFERS 211,220 404,430 5,344 (3,004) 7,913 7,953
LOANS:
Repayments 23,281 2,446 233 7,755 8,226
Distributions (12,281) (1,851) (1,287) (10,199) (18,578)
DISTRIBUTIONS TO PARTICIPANTS (279,172) (65,780) (669) (50,520) (61,033)
TRUSTEES' AND ADMINISTRATIVE FEES (6,613) (1,780) (41) (30) (1,931) (1,058)
------------- ---------- ---------- ---------- ---------- ----------
(DECREASE) INCREASE IN NET ASSETS (74,565) 347,870 5,898 (4,757) (46,982) (64,490)
NET ASSETS AVAILABLE FOR BENEFITS
AT BEGINNING OF YEAR 3,505,270 506,627 15,951 8,560 1,062,993 441,750
------------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $ 3,430,705 $ 854,497 $ 21,849 $ 3,803 $ 1,016,011 $ 377,260
------------- ---------- ---------- ---------- ---------- ----------
------------- ---------- ---------- ---------- ---------- ----------
<CAPTION>
FROZEN T. ROWE
FIXED HONEYWELL COLUMBIA SCUDDER PRICE
INCOME STOCK JANUS SPECIAL INTERNATIONAL INTERNATIONAL
FUND FUND FUND FUND FUND FUNDS
NET INVESTMENT INCOME (LOSS)
IN MASTER TRUSTS $ 20,820 $ (29,161) $ (90) $ 91 $ (838) $ (2,397)
CONTRIBUTIONS:
Employee pretax contributions 37,512 1,856 2,926 2,332 9,496
Employer stock match 26,305
------------- ---------- ---------- ---------- ---------- ----------
Total contributions 63,817 1,856 2,926 2,332 9,496
TRANSFERS FROM (TO) OTHER FUNDS (129,165) (96,926) 5,814 48,826 10,910 63,571
------------- ---------- ---------- ---------- ---------- ----------
TOTAL INVESTMENT INCOME (LOSS),
CONTRIBUTIONS, AND TRANSFERS (108,345) (62,270) 7,580 51,843 12,404 70,670
LOANS:
Repayments 11,348 256 482 297 2,942
Distributions (4,673) (8,704) (7) (1,497) (7) (3,114)
DISTRIBUTIONS TO PARTICIPANTS (22,419) (72,793) (2,027) (3,931)
TRUSTEES' AND ADMINISTRATIVE FEES (717) (838) (19) (66) (19) (94)
------------- ---------- ---------- ---------- ---------- ----------
(DECREASE) INCREASE IN NET ASSETS (136,154) (133,257) 7,810 48,735 12,675 66,473
NET ASSETS AVAILABLE FOR BENEFITS
AT BEGINNING OF YEAR 343,038 595,612 7,199 9,239 5,397 12,338
------------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $ 206,884 $ 462,355 $ 15,009 $ 57,974 $ 18,072 $ 78,811
------------- ---------- ---------- ---------- ---------- ----------
------------- ---------- ---------- ---------- ---------- ----------
<CAPTION>
T. ROWE T. ROWE
PRICE PRICE
SMALL CAP EQUITY
VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUNDS LOANS
NET INVESTMENT INCOME (LOSS)
IN MASTER TRUSTS $ (44) $ 716 $ (4,948)
CONTRIBUTIONS:
Employee pretax contributions 380 1,095
Employer stock match
----------- ----------
Total contributions 380 1,095
TRANSFERS FROM (TO) OTHER FUNDS (2,993) (8,506) $ (168,998)
----------- ---------- --------- ----------
TOTAL INVESTMENT INCOME (LOSS),
CONTRIBUTIONS, AND TRANSFERS (2,657) (6,695) (168,998) (4,948)
LOANS:
Repayments 256 261 (57,783)
Distributions (3,114) 62,198
DISTRIBUTIONS TO PARTICIPANTS
TRUSTEES' AND ADMINISTRATIVE FEES (3) (17)
----------- ---------- --------- ----------
(DECREASE) INCREASE IN NET ASSETS (2,404) (6,451) (168,998) (533)
NET ASSETS AVAILABLE FOR BENEFITS
AT BEGINNING OF YEAR 3,033 12,342 375,593 105,598
----------- ----------- --------- ----------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $ 629 $ 5,891 $ 206,595 $ 105,065
----------- ----------- ---------- ----------
----------- ----------- ---------- ----------
</TABLE>
See notes to financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
HONEYWELL RETIREMENT INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1993
- ------------------------------------------------------------------------------------------------------------------------------------
(Supplemental Information by Fund)
------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
<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 FROM (TO) 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>
FROZEN T. ROWE
FIXED HONEYWELL COLUMBIA SCUDDER PRICE
INCOME STOCK JANUS SPECIAL INTERNATIONAL INTERNATIONAL
FUND FUND FUND FUND FUND FUNDS
NET INVESTMENT INCOME
IN MASTER TRUSTS $ 29,858 $ 27,119 $ 25 $ 109 $ 3 $ 352
CONTRIBUTIONS:
Employee pretax contributions 36,316 538 151 601
Employer stock match 33,220
------------ ---------- ---------- ---------- ------------ ----------
Total contributions 69,536 538 151 601
TRANSFERS FROM (TO) OTHER FUNDS (82,331) (24,716) 7,179 8,567 5,245 12,815
TRANSFERS FROM (TO) OTHER PLANS (899) 4,309
------------ ---------- ---------- ---------- ------------ ----------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS AND TRANSFERS (53,372) 76,248 7,204 9,214 5,399 13,768
LOANS:
Repayments 8,861 61 12
Distributions (17,709) (17,408) (27) (1,434)
DISTRIBUTIONS TO PARTICIPANTS (21,213) (12,122)
TRUSTEES' AND ADMINISTRATIVE FEES (689) (625) (5) (9) (2) (8)
------------ ---------- ---------- ---------- ------------ -----------
INCREASE (DECREASE) IN NET ASSETS (92,983) 54,954 7,199 9,239 5,397 12,338
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 $ 12,338
------------ ---------- ---------- ---------- ------------ ----------
------------ ---------- ---------- ---------- ------------ ----------
<CAPTION>
T. ROWE T. ROWE
PRICE PRICE
SMALL CAP EQUITY
VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUNDS LOANS
NET INVESTMENT INCOME
IN MASTER TRUSTS $ 96 $ 217 $ 2,933
CONTRIBUTIONS:
Employee pretax contributions 306
Employer stock match
------------ ----------
Total contributions 306
TRANSFERS FROM (TO) OTHER FUNDS 2,938 12,850 $ (77,518)
TRANSFERS FROM (TO) OTHER PLANS 2,627
------------ ---------- ---------- ----------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS AND TRANSFERS 3,034 13,373 (74,891) 2,933
LOANS:
Repayments 47 (49,372)
Distributions (1,072) 91,000
DISTRIBUTIONS TO PARTICIPANTS
TRUSTEES' AND ADMINISTRATIVE FEES (1) (6)
------------ ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS 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 $ 3,033 $ 12,342 $ 375,593 $ 105,598
------------ ---------- ---------- ----------
------------ ---------- ---------- ----------
</TABLE>
See notes to financial statements.
8
<PAGE>
HONEYWELL RETIREMENT INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1994 AND 1993
- -------------------------------------------------------------------------------
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.
(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
9
<PAGE>
participants' pay. The amount of the Sponsor s 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 after 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:
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 (one to
five years) maturities.
BONDS PLUS FUND - Diverified among U.S. Treasury bills, high-quality
intermediate- and long-term (one to ten) 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.
FROZEN FIXED INCOME FUND - Invests primarily in guaranteed investment
contracts.
HONEYWELL STOCK FUND - Invests entirely in shares of Honeywell Inc.
common stock.
10
<PAGE>
JANUS FUND - Invests primarily 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 & Poor's 500 Stock Index.
SCUDDER INTERNATIONAL FUND - Intends to diversify its foreign
investments among several countries and 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 - 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 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 the
Employee Retirement Income Services Security Act of 1974. In the event of
plan termination, participates shall be 100% vested in their accounts.
3. INVESTMENT IN EXECUTIVE LIFE INSURANCE COMPANY
At December 31, 1994 and 1993 the Plan's Isolated Funds consisted primarily
of investments in Executive Life Insurance Company (Executive Life)
guaranteed investment contracts (GICs), with approximately 5.6% and 1.67%,
respectively, 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 67% 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's financial statements.
The 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.
11
<PAGE>
4. INTERESTS 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, plan 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, 1994 and 1993, the Plan's interest in the net assets of the master
trusts was approximately 0.5% and 0.3%, respectively. 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>
1994 1993
<S> <C> <C>
Investments at fair value:
Custom funds:
Government Income Fund $ 305,889,947 $ 209,624,454
Short-term Bonds Fund 10,256,109 13,255,684
Bonds Plus Fund 17,508,593 19,587,985
Stocks Plus Fund 232,214,890 252,637,838
S&P 500 Fund 226,631,967 240,823,722
Frozen Fixed Income Fund (a) 53,415,980 124,019,602
Honeywell Stock Fund 173,540,997 157,920,810
Mutual funds, primarily equity
securities 155,759,921 91,770,887
Participants' loans 26,287,970 24,145,987
--------------- ---------------
$ 1,201,506,374 $ 1,133,786,969
--------------- ---------------
--------------- ---------------
<FN>
(a) at contract value
</TABLE>
Investment income for master trust is as follows:
<TABLE>
<CAPTION>
1994 1993
<S> <C> <C>
Net appreciation of fair value of
investments:
Custom funds:
Short-term Bonds Fund $ (51,556) $ 564,780
Bonds Plus Fund (272,642) 827,967
Stocks Plus Fund (2,285,805) 31,291,545
S&P 500 Fund 3,088,743 23,377,943
Honeywell Stock Fund (13,531,441) 4,481,379
Mutual funds, primarily equity securities (9,911,323) 1,305,188
------------- -------------
(22,964,024) 61,848,802
Interest and dividends 34,701,490 28,245,232
------------- -------------
$ 11,737,466 $ 90,094,034
------------- -------------
------------- -------------
</TABLE>
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, 1994 and 1993, the Plan's interest in the net assets
of the master trust was approximately 0.5% and
12
<PAGE>
0.6%, respectively. The contract value of the GICs for the master trust
was $ 38,954,178 at December 31, 1994 and $67,277,792 at December 31, 1993.
5. PARTIES-IN-INTEREST TRANSACTIONS
There were no prohibited party-in-interest transactions during the years
ended December 31, 1994 and 1993.
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, 1994 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 increase (decrease) in the amount of net
assets reported by the trustees of $12,260 and $(108,241) as of December
31, 1994 and 1993, 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, Frozen Fixed Income Fund, and Isolated Funds individually represent
5% or more of net assets available for benefits.
13
<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 28, 1995 By: /s/ James E. Porter
---------------------------------
James E. Porter
Its: Vice President, Human Resources
<PAGE>
INDEX TO EXHIBITS
EXHIBITS PAGE
- -------- ----
23.1 Consent of Deloitte & Touche LLP
<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 9, 1995, appearing in this Annual Report on Form 11-K of the
Honeywell Retirement Investment Plan for the year ended December 31, 1994.
DELOITTE & TOUCHE LLP
Minneapolis, Minnesota
June 29, 1995
