<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
For the fiscal year ended December 31, 1996
OR
[ ] Transition report pursuant to Section 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
---------------------- -------------------
Commission File Numbers: 33-44284 and 33-59359
A. Full title of the plan and address of the plan, if different from that
of the issuer named below:
HONEYWELL INVESTMENT PLUS 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 10 hereof are the Honeywell
Investment Plus Plan Financial Statements for the Years Ended December 31,
1996 and 1995 and Supplemental Schedules for the Year Ended December 31, 1996
prepared by the firm of Deloitte & Touche LLP, Independent Auditors.
<PAGE>
INVESTMENT PLUS PLAN OF
HONEYWELL INC.
FINANCIAL STATEMENTS AS OF AND FOR THE
YEARS ENDED DECEMBER 31, 1996 AND 1995
AND INDEPENDENT AUDITORS' REPORT
<PAGE>
INVESTMENT PLUS PLAN OF HONEYWELL INC.
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
PAGE
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits,
December 31, 1996 and 1995 2-3
Statements of Changes in Net Assets Available for Benefits,
Years Ended December 31, 1996 and 1995 4-5
Notes to Financial Statements 6
<PAGE>
INDEPENDENT AUDITORS' REPORT
Investment Plus Plan of Honeywell Inc.
We have audited the accompanying financial statements of Investment Plus Plan of
Honeywell, Inc. (the Plan) as of December 31, 1996 and 1995 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, 1996
and 1995 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.
Minneapolis, Minnesota
June 20, 1997
<PAGE>
INVESTMENT PLUS PLAN OF HONEYWELL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996 (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
-------------------------------------------------------------------------
GOVERNMENT SHORT-TERM
COMBINED INCOME BOND BONDS STOCKS S&P
TOTAL FUND FUND PLUS FUND PLUS FUND 500 FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in Master Trusts $ 1,912,127 $ 351,210 $ 14,091 $ 37,137 $ 296,511 $ 403,315
Investment at First Trust 15,508
Contributions receivable 8,533 132 10 22 151 202
Other receivables 3,411 3,211 17 76 98
----------- --------- -------- -------- --------- ---------
Total assets 1,939,579 354,553 14,101 37,176 296,738 403,615
LIABILITIES:
Administration fees
payable 232 65 6 12 63 86
Other payables 3,004 2,738 26 89 5
----------- --------- -------- -------- --------- ---------
Total liabilities 3,236 2,803 6 38 152 91
----------- --------- -------- -------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT END
OF YEAR $ 1,936,343 $ 351,750 $ 14,095 $ 37,138 $ 296,586 $ 403,524
----------- --------- -------- -------- --------- ---------
----------- --------- -------- -------- --------- ---------
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
---------------------------------------------------------------------------------------
HONEYWELL UNITED COLUMBIA VANGUARD
STOCK INCOME JANUS TEMPLETON SPECIAL WORLD
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in Master Trusts $ 439,471 $ 23,146 $ 56,012 $ 7,865 $ 48,885 $ 40,842
Investment at First Trust
Contributions receivable 7,717 21 55 8 50 45
Other receivables 3 6
----------- --------- -------- -------- --------- ---------
Total assets 447,191 23,167 56,067 7,873 48,935 40,893
LIABILITIES:
Administration fees
payable
Other payables 2 12 7 18 28 1
----------- --------- -------- -------- --------- ---------
Total liabilities 2 12 7 18 28 1
----------- --------- -------- -------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT END
OF YEAR $ 447,189 $ 23,155 $ 56,060 $ 7,855 $ 48,907 $ 40,892
----------- --------- -------- -------- --------- ---------
----------- --------- -------- -------- --------- ---------
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
---------------------------------------------------------------------------------------
T. ROWE T. ROWE T. ROWE
PRICE PRICE PRICE
INTER- SMALL EQUITY
NATIONAL CAP VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in Master Trusts $ 61,503 $ 38,140 $ 58,530 $ 35,469
Investment at First Trust $ 15,508
Contributions receivable 40 34 46
Other receivables
----------- --------- -------- -------- ---------
Total assets 61,543 38,174 58,576 15,508 35,469
LIABILITIES:
Administration fees
payable
Other payables 52 12 14
----------- --------- -------- -------- ---------
Total liabilities 52 12 14
----------- --------- -------- -------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT END
OF YEAR $ 61,491 $ 38,162 $ 58,562 $ 15,508 $ 35,469
----------- --------- -------- -------- ---------
----------- --------- -------- -------- ---------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
INVESTMENT PLUS PLAN OF HONEYWELL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
--------------------------------------------------------------------------
GOVERNMENT SHORT-TERM
COMBINED INCOME BOND BONDS STOCKS S&P
TOTAL FUND FUND PLUS FUND PLUS FUND 500 FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in Master Trusts $ 1,491,883 $ 337,213 $ 14,060 $ 26,505 $ 262,816 $ 306,066
Investment at First Trust 17,558
Contributions receivable 7,753 159 12 25 166 182
Other receivables 3,310 3,115 87 32 57 19
----------- --------- -------- -------- --------- ---------
Total assets 1,520,504 340,487 14,159 26,562 263,039 306,267
LIABILITIES:
Administration fees
payable 221 67 10 13 61 70
Other payables 3,425 3,123 92 40 156
----------- --------- -------- -------- --------- ---------
Total liabilities 3,646 3,190 102 53 217 70
----------- --------- -------- -------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT END
OF YEAR $ 1,516,858 $ 337,297 $ 14,057 $ 26,509 $ 262,822 $ 306,197
----------- --------- -------- -------- --------- ---------
----------- --------- -------- -------- --------- ---------
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
---------------------------------------------------------------------------------------
SCUDDER
HONEYWELL UNITED COLUMBIA VANGUARD INTER-
STOCK INCOME JANUS SPECIAL WORLD NATIONAL
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in Master Trusts $ 295,310 $ 18,088 $ 37,057 $ 37,183 $ 19,279 $ 15,031
Investment at First Trust
Contributions receivable 6,978 19 42 38 28 13
Other receivables
----------- --------- -------- -------- --------- ---------
Total assets 302,288 18,107 37,099 37,221 19,307 15,044
LIABILITIES:
Administration fees
payable
Other payables 7 2 2 2
----------- -------- -------- ---------
Total liabilities 7 2 2 2
----------- --------- -------- -------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT END
OF YEAR $ 302,281 $ 18,107 $ 37,097 $ 37,219 $ 19,307 $ 15,042
----------- --------- -------- -------- --------- ---------
----------- --------- -------- -------- --------- ---------
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
---------------------------------------------------------------------------------------
T. ROWE T. ROWE T. ROWE
PRICE PRICE PRICE
INTER- SMALL EQUITY
NATIONAL CAP VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in Master Trusts $ 38,279 $ 21,659 $ 34,458 $ 28,879
Investment at First Trust $ 17,558
Contributions receivable 35 21 35
Other receivables
----------- --------- -------- -------- ---------
Total assets 38,314 21,680 34,493 17,558 28,879
LIABILITIES:
Administration fees
payable
Other payables 1
-----------
Total liabilities 1
----------- --------- -------- -------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT END
OF YEAR $ 38,313 $ 21,680 $ 34,493 $ 17,558 $ 28,879
----------- --------- -------- -------- ---------
----------- --------- -------- -------- ---------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
INVESTMENT PLUS PLAN OF HONEYWELL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1996 (AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
-------------------------------------------------------------------------
GOVERNMENT SHORT-TERM
COMBINED INCOME BOND BONDS STOCKS S&P
TOTAL FUND FUND PLUS FUND PLUS FUND 500 FUND
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
IN MASTER TRUSTS $ 296,701 $ 16,828 $ 605 $ 2,899 $ 38,705 $ 71,854
CONTRIBUTIONS:
Employer contributions 27,018
Rollover contributions 8,627 571 184 391 664 1,121
Employee pretax
contributions 81,100 9,240 1,138 2,691 14,546 18,680
----------- --------- -------- -------- --------- ---------
Total contributions 116,745 9,811 1,322 3,082 15,210 19,801
TRANSFERS (TO) FROM
OTHER FUNDS (13,511) (1,484) 4,362 (19,717) (1,510)
----------- --------- -------- -------- --------- ---------
TOTAL INVESTMENT
INCOME, CONTRIBUTIONS,
AND TRANSFERS 413,446 13,128 443 10,343 34,198 90,145
LOANS:
Repayments 2,927 185 376 2,813 3,766
Distributions (4,314) (192) (365) (3,504) (4,233)
DISTRIBUTIONS TO
PARTICIPANTS (77,249) (23,021) (889) (1,420) (13,193) (13,644)
TRUSTEES' AND ADMINI-
STRATIVE FEES (2,003) (478) (41) (70) (433) (545)
MERGER FROM RSP 85,291 26,211 532 1,765 13,883 21,838
----------- --------- -------- -------- --------- ---------
INCREASE (DECREASE) IN
NET ASSETS 419,485 14,453 38 10,629 33,764 97,327
NET ASSETS AVAILABLE
FOR BENEFITS AT
BEGINNING OF YEAR 1,516,858 337,297 14,057 26,509 262,822 306,197
----------- --------- -------- -------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT
END OF YEAR $ 1,936,343 $ 351,750 $ 14,095 $ 37,138 $ 296,586 $ 403,524
----------- --------- -------- -------- --------- ---------
----------- --------- -------- -------- --------- ---------
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
---------------------------------------------------------------------------------------
HONEYWELL UNITED COLUMBIA VANGUARD
STOCK INCOME JANUS TEMPLETON SPECIAL WORLD
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
IN MASTER TRUSTS $ 116,575 $ 3,719 $ 8,043 $ 725 $ 4,930 $ 6,524
CONTRIBUTIONS:
Employer contributions 27,018
Rollover contributions 960 247 933 50 589 662
Employee pretax
contributions 9,372 1,691 4,573 286 4,288 3,235
----------- --------- -------- -------- --------- ---------
Total contributions 37,350 1,938 5,506 336 4,877 3,897
TRANSFERS (TO) FROM
OTHER FUNDS (1,037) (837) 5,536 6,719 1,875 10,613
----------- --------- -------- -------- --------- ---------
TOTAL INVESTMENT
INCOME, CONTRIBUTIONS,
AND TRANSFERS 152,888 4,820 19,085 7,780 11,682 21,034
LOANS:
Repayments 1,963 320 631 46 714 558
Distributions (2,535) (218) (578) (44) (664) (432)
DISTRIBUTIONS TO
PARTICIPANTS (14,333) (615) (1,881) (109) (1,497) (760)
TRUSTEES' AND ADMINI-
STRATIVE FEES (246) (14) (32) (33) (19)
MERGER FROM RSP 7,171 755 1,738 182 1,486 1,204
----------- --------- -------- -------- --------- ---------
INCREASE (DECREASE) IN
NET ASSETS 144,908 5,048 18,963 7,855 11,688 21,585
NET ASSETS AVAILABLE
FOR BENEFITS AT
BEGINNING OF YEAR 302,281 18,107 37,097 37,219 19,307
----------- --------- -------- -------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT
END OF YEAR $ 447,189 $ 23,155 $ 56,060 $ 7,855 $ 48,907 $ 40,892
----------- --------- -------- -------- --------- ---------
----------- --------- -------- -------- --------- ---------
<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 $ 1,136 $ 7,208 $ 6,414 $ 8,534 $ 2,002
CONTRIBUTIONS:
Employer contributions
Rollover contributions 2 362 405 1,486
Employee pretax
contributions 559 4,128 2,871 3,800 2
----------- --------- -------- -------- ---------
Total contributions 561 4,490 3,276 5,286 2
TRANSFERS (TO) FROM
OTHER FUNDS (16,411) 11,863 7,070 9,472 $ 3,003
----------- --------- -------- -------- --------- ---------
TOTAL INVESTMENT
INCOME, CONTRIBUTIONS,
AND TRANSFERS (14,714) 23,561 16,760 23,292 (3,003) 2,004
LOANS:
Repayments 90 707 398 606 (16,100)
Distributions (98) (695) (359) (538) 18,769
DISTRIBUTIONS TO
PARTICIPANTS (315) (2,583) (1,244) (1,695) (50)
TRUSTEES' AND ADMINI-
STRATIVE FEES (5) (36) (20) (31)
MERGER FROM RSP 2,224 947 2,435 1,003 1,917
----------- --------- -------- -------- --------- ---------
INCREASE (DECREASE) IN
NET ASSETS (15,042) 23,178 16,482 24,069 (2,050) 6,590
NET ASSETS AVAILABLE
FOR BENEFITS AT
BEGINNING OF YEAR 15,042 38,313 21,680 34,493 17,558 28,879
----------- --------- -------- -------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT
END OF YEAR $ - $ 61,491 $ 38,162 $ 58,562 $ 15,508 $ 35,469
----------- --------- -------- -------- --------- ---------
----------- --------- -------- -------- --------- ---------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
INVESTMENT PLUS PLAN OF HONEYWELL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
--------------------------------------------------------------------------
GOVERNMENT SHORT-TERM
COMBINED INCOME BOND BONDS STOCKS S&P
TOTAL FUND FUND PLUS FUND PLUS FUND 500 FUND
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
IN MASTER TRUSTS $ 306,824 $ 17,927 $ 1,364 $ 4,332 $ 55,738 $ 81,536
CONTRIBUTIONS:
Employer contributions 23,705
Employee pretax
contributions 74,495 12,334 1,237 2,374 15,345 16,471
Rollover contributions 3,149 288 149 219 237 438
----------- --------- --------- -------- --------- ---------
Total contributions 101,349 12,622 1,386 2,593 15,582 16,909
TRANSFERS FROM (TO)
OTHER FUNDS 49,845 2,160 3,842 (17,771) 4,768
TRANSFERS FROM
OTHER PLANS 75 31 2 1 8 6
----------- --------- --------- -------- --------- ---------
TOTAL INVESTMENT
INCOME, CONTRIBU-
TIONS, AND TRANSFERS 408,248 80,425 4,912 10,768 53,557 103,219
LOANS:
Repayments 3,016 167 381 2,954 3,135
Distributions (4,487) (142) (331) (3,566) (3,818)
DISTRIBUTIONS TO
PARTICIPANTS (66,079) (23,076) (758) (1,049) (10,440) (10,493)
TRUSTEES' AND ADMINI-
STRATIVE FEES (2,232) (577) (43) (63) (485) (529)
----------- --------- --------- -------- --------- ---------
INCREASE (DECREASE) IN
NET ASSETS 339,937 55,301 4,136 9,706 42,020 91,514
NET ASSETS AVAILABLE
FOR BENEFITS AT
BEGINNING OF YEAR 1,176,921 281,996 9,921 16,803 220,802 214,683
----------- --------- --------- -------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT
END OF YEAR $ 1,516,858 $ 337,297 $ 14,057 $ 26,509 $ 262,822 $ 306,197
----------- --------- --------- -------- --------- ---------
----------- --------- --------- -------- --------- ---------
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
---------------------------------------------------------------------------------------
FROZEN HONEYWELL UNITED COLUMBIA VANGUARD
FIXED STOCK INCOME JANUS SPECIAL WORLD
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
IN MASTER TRUSTS $ 1,786 $ 105,573 $ 3,061 $ 7,529 $ 7,509 $ 3,073
CONTRIBUTIONS:
Employer contributions 23,705
Employee pretax
contributions 6 6,474 1,327 3,673 3,336 1,553
Rollover contributions 369 96 333 115 203
----------- --------- --------- -------- --------- ---------
Total contributions 6 30,548 1,423 4,006 3,451 1,756
TRANSFERS FROM (TO)
OTHER FUNDS (49,577) 822 4,539 3,140 3,189 11,126
TRANSFERS FROM
OTHER PLANS 6 10 1 1 1
----------- --------- --------- -------- --------- ---------
TOTAL INVESTMENT
INCOME, CONTRIBU-
TIONS, AND TRANSFERS (47,779) 136,953 9,024 14,675 14,150 15,956
LOANS:
Repayments 1 1,480 230 481 554 226
Distributions (242) (1,809) (242) (435) (652) (240)
DISTRIBUTIONS TO
PARTICIPANTS (1,395) (9,320) (609) (1,594) (1,439) (398)
TRUSTEES' AND ADMINI-
STRATIVE FEES (73) (262) (15) (33) (33) (13)
----------- --------- --------- -------- --------- ---------
INCREASE (DECREASE) IN
NET ASSETS (49,488) 127,042 8,388 13,094 12,580 15,531
NET ASSETS AVAILABLE
FOR BENEFITS AT
BEGINNING OF YEAR 49,488 175,239 9,719 24,003 24,639 3,776
----------- --------- --------- -------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT
END OF YEAR $ - $ 302,281 $ 18,107 $ 37,097 $ 37,219 $ 19,307
----------- --------- --------- -------- --------- ---------
----------- --------- --------- -------- --------- ---------
<CAPTION>
SUPPLEMENTAL INFORMATION BY FUND
---------------------------------------------------------------------------------------
T. ROWE T. ROWE T. ROWE
SCUDDER PRICE PRICE PRICE
INTER- INTER- SMALL EQUITY
NATIONAL NATIONAL CAP VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUND FUNDS LOANS
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
IN MASTER TRUSTS $ 1,688 $ 4,079 $ 3,813 $ 7,160 $ 656
CONTRIBUTIONS:
Employer contributions
Employee pretax
contributions 1,650 4,314 1,922 2,474 5
Rollover contributions 99 133 138 332
----------- --------- --------- -------- ---------
Total contributions 1,749 4,447 2,060 2,806 5
TRANSFERS FROM (TO)
OTHER FUNDS (3,147) (13,998) 5,612 10,354 $ (14,894) (10)
TRANSFERS FROM
OTHER PLANS 1 1 1 5
----------- --------- --------- -------- --------- ---------
TOTAL INVESTMENT
INCOME, CONTRIBU-
TIONS, AND TRANSFERS 291 (5,471) 11,486 20,320 (14,894) 656
LOANS:
Repayments 294 733 280 389 (14,321)
Distributions (277) (646) (263) (395) 17,545
DISTRIBUTIONS TO
PARTICIPANTS (1,880) (1,878) (615) (1,135)
TRUSTEES' AND ADMINI-
STRATIVE FEES (16) (43) (19) (28)
----------- --------- --------- -------- --------- ---------
INCREASE (DECREASE) IN
NET ASSETS
(1,588) (7,305) 10,869 19,151 (14,894) 3,880
NET ASSETS AVAILABLE
FOR BENEFITS AT
BEGINNING OF YEAR 16,630 45,618 10,811 15,342 32,452 24,999
----------- --------- --------- -------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT
END OF YEAR $ 15,042 $ 38,313 $ 21,680 $ 34,493 $ 17,558 $ 28,879
----------- --------- --------- -------- --------- ---------
----------- --------- --------- -------- --------- ---------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
INVESTMENT PLUS PLAN OF HONEYWELL INC.
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1996 AND 1995
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING - The financial statements of the Investment Plus Plan
of Honeywell Inc. (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 plan
designed to provide supplemental retirement benefits to Honeywell nonunion
employees.
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 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 distribution to their
accounts.
(c) The Sponsor contributes between $.50 and $1.00 in Honeywell stock to
the participants' Performance stock match fund account for each $1.00
the participants contribute to their pretax account. Such sponsor
contribution is limited to a maximum of 4% of the participants' pay.
The amount of the sponsor contribution depends upon the Sponsor's
return on investment (as defined).
LOANS TO PARTICIPANTS - The Plan 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 and pretax
6
<PAGE>
rollover account balances) from the balance of their accounts. The loans
can be repaid through payroll deductions over the period of 12 to 48 months
or up to 180 months for the purchase of a primary residence, or they can be
repaid in full at any time that is at least 6 months following the date of
the loan. Interest is charged at a rate equal to prime rate plus 1%.
Payments of principal and interest are credited to the participants'
accounts. Also, participants may have only one outstanding loan at a time.
PARTICIPATION - Each employee classified as a regular full-time or regular
part-time employee of the Sponsor, except a person employed by an excluded
business unit or a person employed under a collective bargaining agreement,
automatically becomes a participant on the date of hire by the Sponsor or
transfer into the Plan.
VESTING - Participants are 100% vested in 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' accounts become distributable to the participants
or their beneficiaries in accordance with the provisions of the Plan.
FORFEITURES - All nonvested sponsor contributions are forfeited by
participants when they terminate employment. Such forfeitures are used to
reduce the Sponsor's subsequent contributions.
INVESTMENT OPTIONS - For contributions, the Plan provides for several
investment options. Individual participants choose the fund or funds in
which to invest from the following funds:
GOVERNMENT INCOME FUND - Invests primarily in short-term U.S.
Government securities.
SHORT-TERM BOND FUND - Invests in U.S. Government, mortgage, and
high-quality corporate bonds with short- and intermediate-term (one -
five years) maturities.
BONDS PLUS FUND - Diversified among U.S. Treasury bills, high-quality
intermediate- and long-term (one - ten 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. This fund is not an option for participants in 1996.
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, established
corporations and small, rapidly emerging companies.
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TEMPLETON FUND - A global stock fund that invests primarily in common
stock of companies of any nation and not concentrated in any
particular industry.
COLUMBIA SPECIAL FUND - Invests primarily in smaller companies with
capitalization that is less than the average for the companies
included in the Standard & Poor's 500 Stock Index.
VANGUARD WORLD 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 through foreign
investments among several countries and not concentrated in any
particular industry. This fund option was replaced in 1996 by the
Templeton Fund.
T. ROWE PRICE INTERNATIONAL STOCK FUND - Invests primarily in stocks
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
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 (ERISA). In the event of
plan termination, participants shall be 100% vested in their accounts.
3. INVESTMENT IN EXECUTIVE LIFE INSURANCE COMPANY
At December 31, 1996 and 1995, the Plan's Isolated Funds primarily
consisted of investments in Executive Life Insurance Company (Executive
Life) guaranteed investment contracts (GICs), with approximately 1% of
total net assets available for benefits for both years. In 1991, the State
of California insurance commissioner seized Executive Life and placed it in
a court-supervised conservatorship. Distributions had been received from
the conservator totaling approximately 80% of the contract balance
immediately prior to the conservatorship. As of the report date, June 20,
1997, the Plan has received 93% of the contract balance. 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 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.
After the conservatorship was established, the Plan's Sponsor 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.
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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 1994 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 plan has an undivided interest in the master trusts. At
December 31, 1996 and 1995, the Plan's interest in the net assets of the
master trusts was approximately 99% and 95%, 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 (in thousands):
1996 1995
Investments at fair value:
Custom funds:
Government Income Fund $ 351,723 $ 366,474
Short-Term Bonds Fund 14,095 14,601
Bonds Plus Fund 37,144 27,817
Stocks Plus Fund 297,488 278,497
S&P 500 Fund 403,903 324,162
Honeywell Stock Fund 440,043 300,564
Mutual funds, primarily equity securities 335,143 228,849
Participants' loans 35,634 30,623
----------- -----------
$ 1,915,173 $ 1,571,587
----------- -----------
----------- -----------
Investment income for the master trust is as follows (in thousands):
Net appreciation in fair
value of investments:
Custom funds:
Short-Term Bond Fund $ 604 $ 1,414
Bonds Plus Fund 2,874 4,399
Stocks Plus Fund 38,909 56,870
S&P 500 Fund 76,126 86,294
Honeywell Stock Fund 111,749 101,561
Mutual funds, primarily equity securities 21,906 26,821
----------- -----------
252,168 277,359
Interest and dividends 57,377 43,784
----------- -----------
$ 309,545 $ 321,143
----------- -----------
----------- -----------
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, 1996 and 1995, the Plan's interest in the net
assets of the master trust was approximately 90% and 84%, respectively.
The contract value of the GICs for the master trust was approximately $17.6
million and $20.9 million at December 31, 1996 and 1995, respectively.
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5. PARTIES-IN-INTEREST TRANSACTIONS
There were no prohibited party-in-interest transactions during the periods
ended December 31, 1996 and 1995.
6. INFORMATION PROVIDED BY TRUSTEES
Plan funds are held in trust by trustees for the sole purpose of making
investments and plan payments and paying trust operating expenses.
Trustees appointed by the Honeywell Pension and Retirement Committee as of
December 31, 1996 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 increases (decreases) in the amount of net
assets reported of $8,621,802 and $10,902,074 as of December 31, 1996 and
1995, 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 at December 31, 1996 and 1995, respectively.
7. PLAN MERGER
Effective December 31, 1996, the Retirement Savings Plan (RSP), which is
also sponsored by Honeywell, was merged into the Plan. The RSP Plan was a
participant in the same master trusts as the Plan. As of January 1, 1997,
the name of the Plan was changed to the Honeywell Stock Ownership Plan.
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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 INVESTMENT PLUS PLAN
Dated: June 26, 1997 By: /s/ Jim Porter
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EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-44284 and No. 33-59359 of the Investment Plus Plan of Honeywell Inc. on Form
S-8 of our report dated June 20, 1997, appearing in this Annual Report on Form
11-K of the Investment Plus Plan of Honeywell Inc. for the year ended December
31, 1996.
Minneapolis, Minnesota
June 20, 1997
