<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, 1995
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 Numbers: 33-44283 and 33-59357
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 10 hereof are the Honeywell
Retirement Savings Plan Financial Statements for the Years Ended December 31,
1995 and 1994 and Supplemental Schedules for the Year Ended December 31, 1995
prepared by the firm of Deloitte & Touche LLP, Independent Auditors.
<PAGE>
HONEYWELL RETIREMENT
SAVINGS PLAN
FINANCIAL STATEMENTS AS OF AND FOR THE
YEARS ENDED DECEMBER 31, 1995 AND 1994
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, 2-3
December 31, 1995 and 1994
Statements of Changes in Net Assets Available for Benefits,
Years Ended December 31, 1995 and 1994 4-5
Notes to Financial Statements 6
<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, 1995 and 1994 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, 1995
and 1994 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 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.
/s/ Deloitte & Touche LLP
Deloitte & Touche LLP
Minneapolis, Minnesota
June 10, 1996
<PAGE>
HONEYWELL RETIREMENT SAVINGS PLAN
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
-----------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS HONEYWELL
COMBINED INCOME BOND PLUS PLUS S&P 500 STOCK
TOTAL FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in Honeywell -
Master Trusts $ 75,183 $ 28,261 $ 534 $ 1,308 $ 12,475 $ 17,503 $ 4,727
Contributions receivable 79 21 1 2 25 21
Other receivables 282 263 3 2 7 5
-------- -------- ----- ------- -------- -------- -------
Total assets 75,544 28,545 538 1,312 12,507 17,529 4,727
LIABILITIES:
Administration fees payable 14 6 1 3 4
Other payables 268 248 4 2 6 (1) 9
-------- -------- ----- ------- -------- -------- -------
Total liabilities 282 254 4 3 9 3 9
-------- -------- ----- ------- -------- -------- -------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 75,262 $ 28,291 $ 534 $ 1,309 $ 12,498 $ 17,526 $ 4,718
-------- -------- ----- ------- -------- -------- -------
-------- -------- ----- ------- -------- -------- -------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------------------------------------------
VANGUARD T. ROWE
WORLD T. ROWE PRICE
UNITED COLUMBIA U.S. SCUDDER PRICE SMALL CAP
INCOME JANUS SPECIAL GROWTH INTERNATIONAL INTERNATIONAL VALUE
FUND FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in Honeywell -
Master Trusts $ 584 $ 1,085 $ 1,123 $ 584 $ 434 $ 1,572 $ 613
Contributions receivable 1 1 2 1 1 2 1
Other receivables
----- ------- ------- ----- ----- ------- -----
Total assets 585 1,086 1,125 585 435 1,574 614
LIABILITIES:
Administration fees payable
Other payables
----- ------- ------- ----- ----- ------- -----
Total liabilities
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 585 $ 1,086 $ 1,125 $ 585 $ 435 $ 1,574 $ 614
----- ------- ------- ----- ----- ------- -----
----- ------- ------- ----- ----- ------- -----
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
-------------------------------------
T. ROWE
PRICE
EQUITY
INCOME ISOLATED PARTICIPANT
FUND FUNDS LOANS
<S> <C> <C> <C>
ASSETS:
Investments in Honeywell -
Master Trusts $ 1,560 $ 1,205 $ 1,615
Contributions receivable
Other receivables 2
------- ------- -------
Total assets 1,562 1,205 1,615
LIABILITIES:
Administration fees payable
Other payables
------- ------- -------
Total liabilities
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 1,562 $ 1,205 $ 1,615
------- ------- -------
------- ------- -------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
HONEYWELL RETIREMENT SAVINGS PLAN
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1994 (AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in Honeywell -
Master Trusts $ 62,633 $ 23,371 $ 340 $ 743 $ 10,823 $ 11,869
Contributions receivable 156 50 2 5 28 37
Other receivables 231 201 3
-------- -------- ----- ------- -------- --------
Total assets 63,020 23,622 342 748 10,854 11,906
LIABILITIES:
Administration fees payable 11 4 3 3
Other payables 231 201 1 (1) 3
-------- -------- ------- -------- --------
Total liabilities 242 205 1 2 6
-------- -------- ----- ------- -------- --------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 62,778 $ 23,417 $ 342 $ 747 $ 10,852 $ 11,900
-------- -------- ----- ------- -------- --------
-------- -------- ----- ------- -------- --------
<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 $ 3,710 $ 3,017 $ 290 $ 775 $ 705 $ 113
Contributions receivable 11 2 3 4
Other receivables 27
------- ------- ----- ----- ----- -----
Total assets 3,737 3,028 292 778 709 113
LIABILITIES:
Administration fees payable 1
Other payables 27
-------
Total liabilities 28
------- ------- ----- ----- ----- -----
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 3,709 $ 3,028 $ 292 $ 778 $ 709 $ 113
------- ------- ----- ----- ----- -----
------- ------- ----- ----- ----- -----
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------------------------------
T. ROWE T. ROWE
T. ROWE PRICE PRICE
SCUDDER PRICE SMALL CAP EQUITY
INTERNATIONAL INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in Honeywell -
Master Trusts $ 507 $ 1,917 $ 339 $ 828 $ 2,217 $ 1,069
Contributions receivable 2 8 1 3
Other receivables
----- ------- ----- ----- ------- -------
Total assets 509 1,925 340 831 2,217 1,069
LIABILITIES:
Administration fees payable
Other payables
Total liabilities
----- ------- ----- ----- ------- -------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 509 $ 1,925 $ 340 $ 831 $ 2,217 $ 1,069
----- ------- ----- ----- ------- -------
----- ------- ----- ----- ------- -------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
HONEYWELL RETIREMENT SAVINGS PLAN
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS)
- ---------------------------------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
----------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 12,259 $ 1,469 $ 48 $ 192 $ 2,651 $ 4,612
CONTRIBUTIONS:
Employee pretax contributions 3,835 1,047 58 110 660 979
Rollover contributions 830 145 10 49 61 246
-------- -------- ------ ------- -------- --------
Total contributions 4,665 1,192 68 159 721 1,225
TRANSFERS FROM (TO) OTHER
FUNDS 4,506 114 227 (843) 538
TRANSFERS (TO) FROM OTHER
PLANS (52) (26) (1) (5) (6)
-------- -------- ------ ------- -------- --------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS 16,872 7,141 230 577 2,524 6,369
LOANS:
Repayments 283 9 10 111 166
Distributions (372) (9) (11) (174) (283)
DISTRIBUTIONS TO PARTICIPANTS (4,266) (2,130) (36) (11) (792) (596)
TRUSTEES' AND ADMINISTRATIVE
FEES (122) (48) (2) (3) (23) (30)
-------- -------- ------ ------- -------- --------
INCREASE (DECREASE) IN
NET ASSETS 12,484 4,874 192 562 1,646 5,626
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 62,778 23,417 342 747 10,852 11,900
-------- -------- ------ ------- -------- --------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 75,262 $ 28,291 $ 534 $ 1,309 $ 12,498 $ 17,526
-------- -------- ------ ------- -------- --------
-------- -------- ------ ------- -------- --------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
----------------------------------------------------------------------
FROZEN VANGUARD
FIXED HONEYWELL UNITED COLUMBIA WORLD
INCOME STOCK INCOME JANUS SPECIAL GROWTH
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 133 $ 1,753 $ 92 $ 237 $ 230 $ 95
CONTRIBUTIONS:
Employee pretax contributions (5) 311 52 87 109 43
Rollover contributions 69 79 34 24 26
------ ------- ----- ------- ------- ------
Total contributions (5) 380 131 121 133 69
TRANSFERS FROM (TO) OTHER
FUNDS (3,658) (214) 93 40 129 319
TRANSFERS (TO) FROM OTHER
PLANS (3) (8) (1)
------ ------- ----- ------- ------- ------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS (3,533) 1,911 315 398 492 483
LOANS:
Repayments 48 5 11 12 4
Distributions (19) (90) (15) (23) (7) (8)
DISTRIBUTIONS TO PARTICIPANTS (152) (175) (12) (77) (81) (6)
TRUSTEES' AND ADMINISTRATIVE
FEES (5) (4) (1) (1)
------ ------- ----- ------- ------- ------
INCREASE (DECREASE) IN
NET ASSETS (3,709) 1,690 293 308 416 472
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 3,709 3,028 292 778 709 113
------ ------- ----- ------- ------- ------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ - $ 4,718 $ 585 $ 1,086 $ 1,125 $ 585
------ ------- ----- ------- ------- ------
------ ------- ----- ------- ------- ------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
---------------------------------------------------------------------------------
T. ROWE T. ROWE
T. ROWE PRICE PRICE
SCUDDER PRICE SMALL CAP EQUITY
INTERNATIONAL INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 57 $ 159 $ 116 $ 348 $ 67
CONTRIBUTIONS:
Employee pretax contributions 60 161 45 118
Rollover contributions 3 2 13 69
----- ------- ----- -------
Total contributions 63 163 58 187
TRANSFERS FROM (TO) OTHER
FUNDS (176) (561) 141 237 $ (1,012) 120
TRANSFERS (TO) FROM OTHER
PLANS (1) (1)
----- ------- ----- ------- -------- -------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS (56) (240) 314 772 (1,012) 187
LOANS:
Repayments 6 31 4 11 (711)
Distributions (4) (36) (10) (9) 1,070
DISTRIBUTIONS TO PARTICIPANTS (19) (104) (33) (42)
TRUSTEES' AND ADMINISTRATIVE
FEES (1) (2) (1) (1)
----- ------- ----- ------- -------- -------
INCREASE (DECREASE) IN
NET ASSETS (74) (351) 274 731 (1,012) 546
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 509 1,925 340 831 2,217 1,069
----- ------- ----- ------- -------- -------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 435 $ 1,574 $ 614 $ 1,562 $ 1,205 $ 1,615
----- ------- ----- ------- -------- -------
----- ------- ----- ------- -------- -------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
HONEYWELL RETIREMENT SAVINGS PLAN
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1994 (AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS) IN
MASTER TRUSTS $ 1,244 $ 837 $ (1) $ (10) $ (5) $ 159
CONTRIBUTIONS:
Employee pretax contributions 4,034 1,194 73 126 823 968
Rollover contributions 145 47 6 8 6 18
-------- -------- ------ ------- -------- --------
Total contributions 4,179 1,241 79 134 829 986
TRANSFERS FROM (TO) OTHER
FUNDS 6,632 (68) (302) (1,211) (1,115)
-------- -------- ------ ------- -------- --------
TOTAL INVESTMENT INCOME (LOSS),
CONTRIBUTIONS, AND TRANSFERS 5,423 8,710 10 (178) (387) 30
LOANS:
Repayments 224 8 8 117 115
Distributions (240) (11) (2) (108) (18)
DISTRIBUTIONS TO PARTICIPANTS (4,171) (1,967) (29) (31) (631) (768)
TRUSTEES' AND ADMINISTRATIVE
FEES (139) (50) (1) (3) (26) (32)
-------- -------- ------ ------- -------- --------
INCREASE (DECREASE) IN NET ASSETS 1,113 6,677 (23) (206) (1,035) (673)
NET ASSETS AVAILABLE FOR BENEFITS
AT BEGINNING OF YEAR 61,665 16,740 365 953 11,887 12,573
-------- -------- ------ ------- -------- --------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $ 62,778 $ 23,417 $ 342 $ 747 $ 10,852 $ 11,900
-------- -------- ------ ------- -------- --------
-------- -------- ------ ------- -------- --------
<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 (LOSS) IN
MASTER TRUSTS $ 466 $ (117) $ (10) $ (9) $ 3 $ 4
CONTRIBUTIONS:
Employee pretax contributions 12 255 50 88 106 13
Rollover contributions 13 1 14 5 8
------- ------- ----- ------- ------- ------
Total contributions 12 268 51 102 111 21
TRANSFERS FROM (TO) OTHER
FUNDS (4,731) 263 89 103 164 26
------- ------- ----- ------- ------- ------
TOTAL INVESTMENT INCOME (LOSS),
CONTRIBUTIONS, AND TRANSFERS (4,253) 414 130 196 278 51
LOANS:
Repayments 32 5 6 4 2
Distributions (39) (40) (4) (4) (8) (2)
DISTRIBUTIONS TO PARTICIPANTS (458) (147) (19) (67) (9) (3)
TRUSTEES' AND ADMINISTRATIVE
FEES (16) (4) (1) (1)
------- ------- ----- ------- ------- ------
INCREASE (DECREASE) IN NET ASSETS (4,766) 255 112 130 265 47
NET ASSETS AVAILABLE FOR BENEFITS
AT BEGINNING OF YEAR 8,475 2,773 180 648 444 66
------- ------- ----- ------- ------- ------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $ 3,709 $ 3,028 $ 292 $ 778 $ 709 $ 113
------- ------- ----- ------- ------- ------
------- ------- ----- ------- ------- ------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
----------------------------------------------------------------------------------
T. ROWE T. ROWE
T. ROWE PRICE PRICE
SCUDDER PRICE SMALL CAP EQUITY
INTERNATIONAL INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS) IN
MASTER TRUSTS $ (26) $ (53) $ (8) $ 26 $ (12)
CONTRIBUTIONS:
Employee pretax contributions 63 177 30 56
Rollover contributions 1 7 9 2
----- ------- ----- -------
Total contributions 64 184 39 58
TRANSFERS FROM (TO) OTHER
FUNDS 165 1,083 181 243 $ (1,522)
----- ------- ----- ------- -------- -------
TOTAL INVESTMENT INCOME (LOSS),
CONTRIBUTIONS, AND TRANSFERS 203 1,214 212 327 (1,522) (12)
LOANS:
Repayments 7 24 1 5 (558)
Distributions (4) (28) (6) 514
DISTRIBUTIONS TO PARTICIPANTS (11) (10) (8) (13)
TRUSTEES' AND ADMINISTRATIVE
FEES (1) (3) (1)
----- ------- ----- ------- -------- -------
INCREASE (DECREASE) IN NET ASSETS 194 1,197 205 312 (1,522) (56)
NET ASSETS AVAILABLE FOR BENEFITS
AT BEGINNING OF YEAR 315 728 135 519 3,739 1,125
----- ------- ----- ------- -------- -------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $ 509 $ 1,925 $ 340 $ 831 $ 2,217 $ 1,069
----- ------- ----- ------- -------- -------
----- ------- ----- ------- -------- -------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
HONEYWELL RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1995 AND 1994
- --------------------------------------------------------------------------------
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 allows 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
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.
6
<PAGE>
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 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 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:
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 - Diversified among U.S. Treasury bills, high-
quality intermediate- and long-term (1-10 years) bonds, and
domestic stocks.
STOCKS PLUS FUND - Invests in domestic stocks that make up the
Standard & Poor's 500 Composite Stock Index, high-quality bonds,
T. Rowe Price Foreign Equity Fund, and U.S. Treasury bills.
S&P 500 FUND - Invests in stocks that make up the Standard &
Poor's 500 Composite Stock Index.
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 - Invests primarily in common stocks of large,
well-established companies that pay above-average dividends. The
fund also invests, to a lesser extent, in fixed-income securities
- both high-quality corporate bonds and U.S. Treasury
obligations.
JANUS FUND - Invests primarily in a combination of large,
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 Composite 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 - Intends to diversify its foreign
investments among several countries and not concentrate
investments in any particular industry.
7
<PAGE>
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 Security Act of 1974. In
the event of plan termination, participants shall be 100% vested in
their accounts.
3. INVESTMENT IN EXECUTIVE LIFE INSURANCE COMPANY
At December 31, 1995 and 1994, the Plan's Isolated Funds consisted
primarily of investments in Executive Life Insurance Company
(Executive Life) guaranteed investment contracts (GICs), with
approximately 1% and 3% 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, 1994, and 1995, distributions have been received from the
conservator totaling approximately 80% of the contract balance
immediately prior to the conservatorship. Furthermore, the Plan's
management currently estimates that the sum of additional
distributions from the conservator, and recoveries from various state
guaranty funds, will not differ significantly from the remaining
recorded contract values. Although the Plan is currently involved in
litigation with various state guaranty funds regarding the amount and
nature of coverage, plan management does not believe that the ultimate
shortfall will be material to the Plan's financial statements.
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-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, 1995 and 1994, the
Plan's interest in the net assets of the master trusts was
approximately 5%. 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.
8
<PAGE>
The following table presents the fair value of investments held in
master trusts:
1995 1994
Investments at fair value (in thousands):
Custom funds:
Government Income Fund $ 366,474 $ 305,890
Short-Term Bond Fund 14,601 10,256
Bonds Plus Fund 27,817 17,508
Stocks Plus Fund 278,497 232,215
S&P 500 Fund 324,162 226,632
Fixed Income Fund (a) 53,416
Honeywell Stock Fund 300,564 173,541
Mutual funds, primarily equity
securities 228,849 155,760
Participants' loans 30,623 26,288
----------- -----------
$ 1,571,587 $ 1,201,506
----------- -----------
----------- -----------
(a) at contract value
Investment income for master trust is as follows (in thousands):
1995 1994
Net appreciation (depreciation) in
fair value of investments:
Custom funds:
Short-Term Bond Fund $ 1,414 $ (52)
Bonds Plus Fund 4,399 (273)
Stocks Plus Fund 56,870 (2,286)
S&P 500 Fund 86,294 3,089
Honeywell Stock Fund 101,561 (13,531)
Mutual funds, primarily equity
securities 26,821 (9,911)
----------- -----------
277,359 (22,964)
Interest and dividends 43,784 34,701
----------- -----------
$ 321,143 $ 11,737
----------- -----------
----------- -----------
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, 1995 and 1994, the
Plan's interest in the net assets of the master trust was
approximately 6%. The contract value of the GICs for the master trust
was approximately $20.9 million and $39.0 million at December 31, 1995
and 1994, respectively.
5. PARTIES-IN-INTEREST TRANSACTIONS
There were no prohibited party-in-interest transactions during the
years ended December 31, 1995 and 1994.
9
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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, 1994 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 increase (decrease) in the
amount of net assets reported by the trustees of $907,805 and $287,579
as of December 31, 1995 and 1994, respectively. Such adjustments are
primarily recorded for the purpose of converting the trustees'
statements from the cash basis to the accrual basis of accounting and
to reflect the impact of participant loan activity.
The Government Income Fund, Stocks Plus Fund, S&P 500 Fund, and
Honeywell Stock Fund individually represent 5% or more of net assets
available for benefits as of December 31, 1995. As of December 31,
1994, the Government Income Fund, Stocks Plus Fund, Frozen Fixed
Income Fund, and S&P 500 Fund individually represent 5% or more of net
assets available for benefits.
10
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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 26, 1996 By: /s/ Jim Porter
------------------------------------
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
23.1 Consent of Deloitte & Touche LLP
<PAGE>
EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-44283 and No. 33-59357 of the Honeywell Retirement Savings Plan on Form S-8
of our report dated June 10, 1996, appearing in this Annual Report on Form 11-K
of the Honeywell Retirement Savings Plan for the year ended December 31, 1995.
/s/ Deloitte & Touche LLP
Deloitte & Touche LLP
Minneapolis, Minnesota
June 24, 1996
