<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 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 10 hereof are the Honeywell
Retirement Investment 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 INVESTMENT PLAN
FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 1995 AND 1994 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, 1995 and 1994 2-3
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 Investment Plan
We have audited the accompanying financial statements of Honeywell Retirement
Investment 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 INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1995
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS
TOTAL FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in Master Trusts $ 4,050,955 $ 1,000,732 $ 7,115 $ 4,963 $ 1,205,648
Contributions receivable 10,154 980 70 0 560
Other receivables 9,577 9,251 44 5 277
----------- ----------- --------- --------- -----------
Total assets 4,070,686 1,010,963 7,229 4,968 1,206,485
LIABILITIES:
Administration fees payable 617 197 5 2 278
Other payables 9,916 9,251 47 6 655
----------- ----------- --------- --------- -----------
Total liabilities 10,533 9,448 52 8 933
----------- ----------- --------- --------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 4,060,153 $ 1,001,515 $ 7,177 $ 4,960 $ 1,205,552
----------- ----------- --------- --------- -----------
----------- ----------- --------- --------- -----------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
-------------------------------------------------------------------------------------
HONEYWELL COLUMBIA SCUDDER
S&P 500 STOCK UNITED SPECIAL JANUS INTERNATIONAL
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in Master Trusts $ 592,621 $ 743,904 $ 6,818 $ 69,803 45,588 $ 8,062
Contributions receivable 772 7,190 10 96 105 22
Other receivables
--------- --------- --------- --------- --------- ---------
Total assets 593,393 751,094 6,828 69,899 45,693 8,084
LIABILITIES:
Administration fees payable 135
Other payables (43)
---------
Total liabilities 92
--------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 593,301 $ 751,094 $ 6,828 $ 69,899 $ 45,693 $ 8,084
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
-----------------------------------------------------------------------------------
T. ROWE T. ROWE
VANGUARD T. ROWE PRICE PRICE
WORLD PRICE SMALL CAP EQUITY
GROWTH INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in Master Trusts $ 39,836 $ 68,552 $ 8,637 $ 14,137 $ 106,235 $ 128,304
Contributions receivable
Other receivables 80 209 20 40
--------- --------- --------- --------- --------- ---------
Total assets 39,916 68,761 8,657 14,177 106,235 128,304
LIABILITIES:
Administration fees payable
Other payables
Total liabilities
--------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 39,916 $ 68,761 $ 8,657 $ 14,177 $ 106,235 $ 128,304
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
</TABLE>
See accompanying notes to financial statements.
2
<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
TOTAL FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in Master Trusts $ 3,417,002 $ 852,163 $ 21,522 $ 3,790 $ 1,014,503
Contributions receivable 14,030 2,489 334 15 1,432
Other receivables 9,075 7,319 3 220
------------ ---------- ---------- --------- ------------
Total assets 3,440,107 861,971 21,856 3,808 1,016,155
LIABILITIES:
Administration fees payable 460 155 7 1 144
Other payables 8,942 7,319 4
------------ ---------- ---------- --------- ------------
Total liabilities 9,402 7,474 7 5 144
------------ ---------- ---------- --------- ------------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 3,430,705 $ 854,497 $ 21,849 $ 3,803 $ 1,016,011
------------ ---------- ---------- --------- ------------
------------ ---------- ---------- --------- ------------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
------------------------------------------------------------------------------------
FROZEN
FIXED HONEYWELL COLUMBIA SCUDDER
S&P 500 INCOME STOCK SPECIAL JANUS INTERNATIONAL
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in Master Trusts $ 376,363 $ 206,948 $ 454,660 $ 57,770 $ 14,880 $ 17,957
Contributions receivable 1,072 7,695 204 129 115
Other receivables 1,533
---------- ---------- ---------- ---------- --------- ----------
Total assets 377,435 208,481 462,355 57,974 15,009 18,072
LIABILITIES:
Administration fees payable 89 64
Other payables 86 1,533
---------- ----------
Total liabilities 175 1,597
---------- ---------- ---------- ---------- --------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 377,260 $ 206,884 $ 462,355 $ 57,974 $ 15,009 $ 18,072
---------- ---------- ---------- ---------- --------- ----------
---------- ---------- ---------- ---------- --------- ----------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------------------
T. ROWE
T. ROWE PRICE PRICE
PRICE SMALL CAP EQUITY
INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in Master Trusts $ 78,336 $ 581 $ 5,869 $ 206,595 $ 105,065
Contributions receivable
Other receivables 475 48 22
--------- -------- --------- ---------- ----------
Total assets 78,811 629 5,891 206,595 105,065
LIABILITIES:
Administration fees payable
Other payables
Total liabilities
--------- -------- --------- ---------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 78,811 $ 629 $ 5,891 $ 206,595 $ 105,065
--------- -------- --------- ---------- ----------
--------- -------- --------- ---------- ----------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
HONEYWELL RETIREMENT INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1995
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS
TOTAL FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
IN MASTER TRUSTS $ 781,321 $ 52,428 $ 1,504 $ 883 $ 252,575
CONTRIBUTIONS:
Employee pretax contributions 144,165 39,831 2,662 451 27,160
Employer stock match 21,544
----------- ----------- ------- ------- ----------
Total contributions 165,709 39,831 2,662 451 27,160
TRANSFERS FROM (TO) OTHER
FUNDS 156,117 567 (15) 12,108
----------- ----------- ------- ------- ----------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS 947,030 248,376 4,733 1,319 291,843
LOANS:
Repayments 29,275 2,326 34 9,739
Distributions (30,319) (3,361) (183) (21,682)
DISTRIBUTIONS TO PARTICIPANTS (311,389) (98,652) (18,325) (88,138)
TRUSTEES' AND ADMINISTRATIVE
FEES (6,193) (1,662) (45) (13) (2,221)
----------- ----------- ------- ------- ----------
INCREASE (DECREASE) IN NET
ASSETS 629,448 147,018 (14,672) 1,157 189,541
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 3,430,705 854,497 21,849 3,803 1,016,011
----------- ----------- ------- ------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 4,060,153 $ 1,001,515 $ 7,177 $ 4,960 $1,205,552
----------- ----------- ------- ------- ----------
----------- ----------- ------- ------- ----------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
----------------------------------------------------------------------------------------------
FROZEN
FIXED HONEYWELL COLUMBIA SCUDDER
S&P 500 INCOME STOCK UNITED SPECIAL JANUS INTERNATIONAL
FUND FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
IN MASTER TRUSTS $ 148,087 $ 9,007 $ 265,758 $ 863 $ 15,892 $ 7,001 $ 1,352
CONTRIBUTIONS:
Employee pretax contributions 24,419 24,190 451 4,624 4,846 1,668
Employer stock match 21,544
--------- --------- --------- ------- -------- -------- ---------
Total contributions 24,419 45,734 451 4,624 4,846 1,668
TRANSFERS FROM (TO) OTHER
FUNDS 75,328 (190,344) 30,348 5,519 (8,419) 19,157 (12,651)
--------- --------- --------- ------- -------- -------- ---------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS 247,834 (181,337) 341,840 6,833 12,097 31,004 (9,631)
LOANS:
Repayments 14,080 12,992 1,069 2,140 1,776
Distributions (16,119) (4,453) (10,813) (1,172) (2,424) (2,121)
DISTRIBUTIONS TO PARTICIPANTS (28,777) (20,727) (54,611)
TRUSTEES' AND ADMINISTRATIVE
FEES (977) (367) (669) (5) (69) (36) (12)
--------- --------- --------- ------- -------- -------- ---------
INCREASE (DECREASE) IN NET
ASSETS 216,041 (206,884) 288,739 6,828 11,925 30,684 (9,988)
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 377,260 206,884 462,355 57,974 15,009 18,072
--------- --------- --------- ------- -------- -------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 593,301 $ - $ 751,094 $ 6,828 $ 69,899 $ 45,693 $ 8,084
--------- --------- --------- ------- -------- -------- ---------
--------- --------- --------- ------- -------- -------- ---------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
----------------------------------------------------------------------------------------------
T. ROWE T. ROWE
VANGUARD T. ROWE PRICE PRICE
WORLD PRICE SMALL CAP EQUITY
GROWTH INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
IN MASTER TRUSTS $ 5,116 $ 7,790 $ 1,325 $ 2,893 $ 8,847
CONTRIBUTIONS:
Employee pretax contributions 1,976 9,231 1,072 962 $ 622
Employer stock match
-------- --------- -------- -------- -------- ---------
Total contributions 1,976 9,231 1,072 962 622
TRANSFERS FROM (TO) OTHER
FUNDS 33,814 (26,945) 5,472 5,635 (100,982) (4,709)
-------- --------- -------- -------- -------- ---------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS 40,906 (9,924) 7,869 9,490 (100,360) 4,138
LOANS:
Repayments 320 3,105 1,769 312 (78,937)
Distributions (1,286) (1,758) (1,604) (1,504) 98,799
DISTRIBUTIONS TO PARTICIPANTS (1,398) (761)
TRUSTEES' AND ADMINISTRATIVE
FEES (24) (75) (6) (12)
-------- --------- -------- -------- -------- ---------
INCREASE (DECREASE) IN NET
ASSETS 39,916 (10,050) 8,028 8,286 (100,360) 23,239
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 78,811 629 5,891 206,595 105,065
-------- --------- -------- -------- -------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 39,916 $ 68,761 $ 8,657 $ 14,177 $ 106,235 $ 128,304
-------- --------- -------- -------- ---------- ---------
-------- --------- -------- -------- ---------- ---------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
HONEYWELL RETIREMENT INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1994
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
-----------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS
TOTAL FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
IN MASTER TRUSTS $ 19,063 $ 30,136 $ (29) $ (114) $ (166)
CONTRIBUTIONS:
Employee pretax contributions 165,852 48,187 5,656 689 33,523
Employer stock match 26,305
------------ ----------- --------- -------- ------------
Total contributions 192,157 48,187 5,656 689 33,523
TRANSFERS FROM (TO) OTHER FUNDS 326,107 (283) (3,579) (25,444)
------------ ----------- --------- -------- ------------
TOTAL INVESTMENT INCOME (LOSS),
CONTRIBUTIONS, AND TRANSFERS 211,220 404,430 5,344 (3,004) 7,913
LOANS:
Repayments 23,281 2,446 233 7,755
Distributions (12,281) (1,851) (1,287) (10,199)
DISTRIBUTIONS TO PARTICIPANTS (279,172) (65,780) (669) (50,520)
TRUSTEES' AND ADMINISTRATIVE FEES (6,613) (1,780) (41) (30) (1,931)
------------ ----------- --------- -------- ------------
DECEARSE [INCREASE] IN NET ASSETS (74,565) 347,870 5,898 (4,757) (46,982)
NET ASSETS AVAILABLE FOR BENEFITS
AT BEGINNING OF YEAR 3,505,270 506,627 15,951 8,560 1,062,993
------------ ----------- --------- -------- ------------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $ 3,430,705 $ 854,497 $ 21,849 $ 3,803 $ 1,016,011
------------ ----------- --------- -------- ------------
------------ ----------- --------- -------- ------------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
----------------------------------------------------------------------------------
FROZEN
FIXED HONEYWELL COLUMBIA SCUDDER
S&P 500 INCOME STOCK SPECIAL JANUS INTERNATIONAL
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
IN MASTER TRUSTS $ 5,087 $ 20,820 $ (29,161) $ 91 $ (90) $ (838)
CONTRIBUTIONS:
Employee pretax contributions 22,200 37,512 2,926 1,856 2,332
Employer stock match 26,305
---------- ---------- -------- -------- ---------
Total contributions 22,200 63,817 2,926 1,856 2,332
TRANSFERS FROM (TO) OTHER FUNDS (19,334) (129,165) (96,926) 48,826 5,814 10,910
---------- ---------- ---------- -------- -------- ---------
TOTAL INVESTMENT INCOME (LOSS),
CONTRIBUTIONS, AND TRANSFERS 7,953 (108,345) (62,270) 51,843 7,580 12,404
LOANS:
Repayments 8,226 11,348 482 256 297
Distributions (18,578) (4,673) (8,704) (1,497) (7) (7)
DISTRIBUTIONS TO PARTICIPANTS (61,033) (22,419) (72,793) (2,027)
TRUSTEES' AND ADMINISTRATIVE FEES (1,058) (717) (838) (66) (19) (19)
---------- ---------- ---------- -------- -------- ---------
DECEARSE [INCREASE] IN NET ASSETS (64,490) (136,154) (133,257) 48,735 7,810 12,675
NET ASSETS AVAILABLE FOR BENEFITS
AT BEGINNING OF YEAR 441,750 343,038 595,612 9,239 7,199 5,397
---------- ---------- ---------- -------- -------- ---------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $ 377,260 $ 206,884 $ 462,355 $ 57,974 $ 15,009 $ 18,072
---------- ---------- ---------- -------- -------- ---------
---------- ---------- ---------- -------- -------- ---------
<CAPTION>
(SUPPLEMENTAL INFORMATION BY FUND)
----------------------------------------------------------------------
T. ROWE T. ROWE
T. ROWE PRICE PRICE
PRICE SMALL CAP EQUITY
INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
IN MASTER TRUSTS $ (2,397) $ (44) $ 716 $ (4,948)
CONTRIBUTIONS:
Employee pretax contributions 9,496 380 1,095
Employer stock match
--------- ------- --------
Total contributions 9,496 380 1,095
TRANSFERS FROM (TO) OTHER FUNDS 63,571 (2,993) (8,506) $ (168,998)
--------- ------- -------- ---------- ---------
TOTAL INVESTMENT INCOME (LOSS),
CONTRIBUTIONS, AND TRANSFERS 70,670 (2,657) (6,695) (168,998) (4,948)
LOANS:
Repayments 2,942 256 261 (57,783)
Distributions (3,114) 62,198
DISTRIBUTIONS TO PARTICIPANTS (3,931)
TRUSTEES' AND ADMINISTRATIVE FEES (94) (3) (17)
--------- ------- -------- ---------- ---------
DECREASE [INCREASE] IN NET ASSETS 66,473 (2,404) (6,451) (168,998) (533)
NET ASSETS AVAILABLE FOR BENEFITS
AT BEGINNING OF YEAR 12,338 3,033 12,342 375,593 105,598
--------- ------- -------- ---------- ---------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $ 78,811 $ 629 $ 5,891 $ 206,595 $ 105,065
--------- ------- -------- ---------- ---------
--------- ------- -------- ---------- ---------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
HONEYWELL RETIREMENT INVESTMENT 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
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.
In May 1996, the Plan Sponsor sold the division to which the participants
were employed. In accordance with the sale, participants will no longer
receive contributions from the Plan Sponsor. There were no other
significant changes to the provisions of the Plan.
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.
6
<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 participants contribute to their pretax accounts. Such sponsor
contribution is limited to a maximum of 4% of the participants' pay.
The amount of the Sponsor's contribution depends upon the Sponsor's
return on investment (as defined).
LOANS TO PARTICIPANTS - The Plan allows participants to apply for and
obtain loans 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 regular full-time or regular part-time employees, 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 - Diversified 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.
7
<PAGE>
UNITED 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.
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.
JANUS FUND - Invests primarily in a combination of large, familiar
corporations and small, rapidly emerging companies.
SCUDDER INTERNATIONAL FUND - Intends to diversify its foreign
investments among several countries and not concentrate investments in
any particular industry.
VANGUARD WORLD 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.
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, 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 2% and 6%,
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 1994 and 1995, distributions
have been received from the conservator totaling approximating 79% 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.
8
<PAGE>
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.
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. 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 0.3% and 0.5%, 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.
1995 1994
Investments at fair value:
Custom funds:
Government Income Fund $ 366,474,017 $ 305,889,947
Short-Term Bonds Fund 14,601,360 10,256,109
Bonds Plus Fund 27,817,504 17,508,593
Stocks Plus Fund 278,496,571 232,214,890
S&P 500 Fund 324,162,323 226,631,967
Frozen Fixed Income Fund (a) 53,415,980
Honeywell Stock Fund 300,563,670 173,540,997
Mutual funds, primarily equity
securities 228,848,537 155,759,921
Participants' loans 30,623,059 26,287, 970
-------------- --------------
$1,571,587,041 $1,201,506,374
-------------- --------------
-------------- --------------
(a) at contract value
Investment income for master trust is as follows:
1995 1994
Net appreciation of fair value of investments:
Custom funds:
Short-term Bonds Fund $ 1,413,811 $ (51,556)
Bonds Plus Fund 4,398,633 (272,642)
Stocks Plus Fund 56,869,995 (2,285,805)
S&P 500 Fund 86,294,546 3,088,743
Honeywell Stock Fund 101,560,940 (13,531,441)
Mutual funds, primarily equity securities 26,821,187 (9,911,323)
------------ -------------
277,359,112 (22,964,024)
Interest and dividends 43,783,687 34,701,490
------------ -------------
$321,142,799 $ 11,737,466
------------ -------------
------------ -------------
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.
9
<PAGE>
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 0.5%. 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.
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, 1995 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 an increase (decrease) in the amount of net
assets reported by the trustees of $10,154 and $12,260 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. At December 31, 1994, these same funds
together with the Frozen Fixed Income Fund and Isolated Funds individually
represent 5% or more of net assets available for benefits.
10
<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 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.
33-44282 of the Honeywell Retirement Investment 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 Investment Plan for the year ended December 31, 1995.
/s/ Deloitte & Touche LLP
Deloitte & Touche LLP
Minneapolis, Minnesota
June 24, 1996
