SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[ X ] Annual report pursuant to Section 15(d) of the Securities Exchange
Act of 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1994
OR
[ ] Transition report pursuant to Section 15(d) of the Securities
Exchange Act of 1934 (NO FEE REQUIRED)
For the transition period from _____________________ to ___________________
Commission File Number 33-44283
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 2 to 13 hereof are the Honeywell
Retirement Savings Plan Financial Statements for the Years Ended December 31,
1994 and 1993 and Supplemental Schedules for the Year Ended December 31, 1994
prepared by the firm of Deloitte & Touche LLP, Independent Auditors.
HONEYWELL RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 1994 AND 1993 AND INDEPENDENT
AUDITORS' REPORT
2
HONEYWELL RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
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PAGE
INDEPENDENT AUDITORS' REPORT 4
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits,
December 31, 1994 and 1993 5-6
Statements of Changes in Net Assets Available for Benefits,
Years Ended December 31, 1994 and 1993 7-8
Notes to Financial Statements 9
3
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, 1994 and 1993 and for the years then
ended, listed in the foregoing Table of Contents. These financial statements
are the responsibility of the Plan's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. These standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the accompanying financial statements present fairly, in all
material respects, the net assets available for benefits as of December 31, 1994
and 1993 and the changes in net assets available for benefits for the years then
ended, in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information by fund is
presented for the purpose of additional analysis of the basic financial
statements rather than to present information regarding the net assets available
for benefits and changes in net assets available for benefits of the individual
funds and is not a required part of the basic financial statements. This
supplemental information by fund is the responsibility of the Plan's management.
Such supplemental information by fund has been subjected to the auditing
procedures applied in our audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects when considered in relation
to the basic financial statements taken as a whole.
DELOITTE & TOUCHE LLP
Minneapolis, Minnesota
June 9, 1995
4
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1994
- --------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
- --------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
ASSETS:
Investments in Honeywell:
Master Trusts $ 62,632,587 $ 23,370,919 $ 339,618 $ 743,115 $ 10,823,331 $ 11,869,284
Contributions receivable 156,029 49,462 2,442 4,537 28,021 36,514
Other receivables 231,048 200,715 511 2,352
------------- ------------- ---------- ---------- ------------- -------------
Total assets 63,019,664 23,621,096 342,060 748,163 10,853,704 11,905,798
LIABILITIES:
Administration fees payable 11,092 4,249 127 262 2,517 2,794
Other payables 230,980 200,990 (16) 733 (976) 2,720
------------- ------------- ---------- ---------- ------------- -------------
Total liabilities 242,072 205,239 111 995 1,541 5,514
------------- ------------- ---------- ---------- ------------- -------------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 62,777,592 $ 23,415,857 $ 341,949 $ 747,168 $ 10,852,163 $ 11,900,284
------------- ------------- ---------- ---------- ------------- -------------
------------- ------------- ---------- ---------- ------------- -------------
FROZEN
FIXED HONEYWELL UNITED COLUMBIA VANGUARD
INCOME STOCK INCOME JANUS SPECIAL WORLD U.S.
FUND FUND FUND FUND FUND GROWTH FUND
ASSETS:
Investments in Honeywell:
Master Trusts $ 3,710,034 $ 3,016,979 $ 289,687 $ 774,804 $ 705,319 $ 112,597
Contributions receivable 10,844 1,723 3,286 3,862 732
Other receivables 27,470
------------- ------------- ----------- ----------- ------------ -----------
Total assets 3,737,504 3,027,823 291,410 778,090 709,181 113,329
LIABILITIES:
Administration fees payable 1,143
Other payables 27,529
------------- ------------- ----------- ----------- ------------ -----------
Total liabilities 28,672
------------- ------------- ----------- ----------- ------------ -----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 3,708,832 $ 3,027,823 $ 291,410 $ 778,090 $ 709,181 $ 113,329
------------- ------------- ----------- ----------- ------------ -----------
------------- ------------- ----------- ----------- ------------ -----------
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
ASSETS:
Investments in Honeywell:
Master Trusts $ 507,053 $ 1,917,447 $ 338,599 $ 828,010 $ 2,216,516 $ 1,069,275
Contributions receivable 2,382 7,705 1,375 3,144
Other receivables
------------- ------------- ---------- ---------- ------------- -------------
Total assets 509,435 1,925,152 339,974 831,154 2,216,516 1,069,275
LIABILITIES:
Administration fees payable
Other payables
------------- ------------- ---------- ---------- ------------- -------------
Total liabilities
------------- ------------- ---------- ---------- ------------- -------------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 509,435 $ 1,925,152 $339,974 $ 831,154 $ 2,216,516 $ 1,069,275
------------- ------------- ---------- ---------- ------------- -------------
------------- ------------- ---------- ---------- ------------- -------------
See notes to financial statements.
5
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1993
- --------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
- --------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
ASSETS:
Investments in Honeywell -
Master Trusts $ 61,498,472 $ 16,685,897 $ 361,946 $ 949,136 $ 11,860,336 $ 12,536,561
Contributions receivable 166,978 48,190 3,559 4,861 35,825 41,246
Other receivables 107,480 46,260 3,864 3,236 16,677 17,244
Due from other plans 21,719 14,427 73 7,178
------------- ------------- ---------- ---------- ------------- -------------
Total assets 61,794,649 16,794,774 369,369 957,233 11,912,911 12,602,229
LIABILITIES:
Administration fees payable 32,474 9,214 326 966 7,557 7,731
Other payables 97,183 46,033 3,859 2,966 18,821 21,485
------------- ------------- ---------- ---------- ------------- -------------
Total liabilities 129,657 55,247 4,185 3,932 26,378 29,216
------------- ------------- ---------- ---------- ------------- -------------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 61,664,992 $ 16,739,527 $ 365,184 $ 953,301 $ 11,886,533 $ 12,573,013
------------- ------------- ---------- ---------- ------------- -------------
------------- ------------- ---------- ---------- ------------- -------------
FROZEN
FIXED HONEYWELL UNITED COLUMBIA VANGUARD
INCOME STOCK INCOME JANUS SPECIAL WORLD U.S.
FUND FUND FUND FUND FUND GROWTH FUND
ASSETS:
Investments in Honeywell -
Master Trusts $ 8,465,082 $ 2,761,767 $ 178,844 $ 638,348 $ 441,060 $ 65,599
Contributions receivable 11,684 1,101 9,908 2,639 368
Other receivables 19,113 164 457 465
Due from other plans 41
------------- ------------- ---------- ---------- ------------- -------------
Total assets 8,484,236 2,773,615 179,945 648,713 444,164 65,967
LIABILITIES:
Administration fees payable 4,670 890 64 232 176 22
Other payables 4,019
------------- ------------- ---------- ---------- ------------- -------------
Total liabilities 8,689 890 64 232 176 22
------------- ------------- ---------- ---------- ------------- -------------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 8,475,547 $ 2,772,725 $ 179,881 $ 648,481 $ 443,988 $ 65,945
------------- ------------- ---------- ---------- ------------- -------------
------------- ------------- ---------- ---------- ------------- -------------
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
ASSETS:
Investments in Honeywell -
Master Trusts $ 313,207 $ 725,074 $ 135,111 $ 516,954 $ 3,738,846 $ 1,124,704
Contributions receivable 1,785 3,461 264 2,087
Other receivables
Due from other plans
---------- ---------- ---------- ---------- ------------ ------------
Total assets 314,992 728,535 135,375 519,041 3,738,846 1,124,704
LIABILITIES:
Administration fees payable 118 282 50 176
Other payables
---------- ---------- ---------- ---------- ------------ -------------
Total liabilities 118 282 50 176
---------- ---------- ---------- ---------- ------------ -------------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 314,874 $ 728,253 $ 135,325 $ 518,865 $ 3,738,846 $ 1,124,704
---------- ---------- ---------- ---------- ------------ -------------
---------- ---------- ---------- ---------- ------------ -------------
See notes to financial statements.
6
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1994
- --------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
- --------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
NET INVESTMENT INCOME (LOSS) IN
MASTER TRUSTS $ 1,243,810 $ 836,591 $ (1,174) $ (9,681) $ (5,022) $ 158,831
CONTRIBUTIONS:
Employee pretax contributions 4,033,916 1,193,500 72,837 125,918 822,762 968,333
Rollover contributions 144,944 47,411 6,717 8,364 6,337 17,471
------------ ---------- ---------- ---------- ---------- ----------
Total contributions 4,178,860 1,240,911 79,554 134,282 829,099 985,804
TRANSFERS (TO) FROM OTHER
FUNDS 0 6,632,166 (68,239) (301,901) (1,210,994) (1,114,443)
TOTAL INVESTMENT INCOME (LOSS), ------------ ---------- ---------- ---------- ---------- ----------
CONTRIBUTIONS, AND TRANSFERS 5,422,670 8,709,668 10,141 (177,300) (386,917) 30,192
LOANS:
Repayments 224,466 7,844 7,787 117,021 115,230
Distributions (239,760) (10,645) (2,374) (108,107) (18,578)
DISTRIBUTIONS TO PARTICIPANTS (4,171,419) (1,967,941) (29,500) (31,210) (630,836) (767,658)
TRUSTEES AND ADMINISTRATIVE (138,651) (50,103) (1,075) (3,036) (25,531) (31,915)
FEES ------------ ---------- ---------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS 1,112,600 6,676,330 (23,235) (206,133) (1,034,370) (672,729)
NET ASSETS AVAILABLE FOR BENEFITS 61,664,992 16,739,527 365,184 953,301 11,886,533 12,573,013
AT BEGINNING OF YEAR ------------ ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $ 62,777,592 $ 23,415,857 $ 341,949 $ 747,168 $10,852,163 $ 11,900,284
------------ ------------ ----------- ---------- ----------- ------------
------------ ------------ ----------- ---------- ----------- ------------
FROZEN
FIXED HONEYWELL UNITED COLUMBIA VANGUARD
INCOME STOCK INCOME JANUS SPECIAL WORLD U.S.
FUND FUND FUND FUND FUND GROWTH FUN
NET INVESTMENT INCOME (LOSS) IN
MASTER TRUSTS $ 465,763 $ (117,617) $ (9,971) $ (8,925) $ 3,448 $ 3,774
CONTRIBUTIONS:
Employee pretax contributions 12,086 254,926 49,664 88,060 105,598 12,708
Rollover contributions 13,248 1,014 14,094 4,593 8,135
------------ ------------ ---------- ---------- -------- --------
Total contributions 12,086 268,174 50,678 102,154 110,191 20,843
TRANSFERS (TO) FROM OTHER
FUNDS (4,731,472) 263,337 88,844 103,009 163,979 26,004
TOTAL INVESTMENT INCOME (LOSS), ------------ ------------ ---------- ---------- -------- --------
CONTRIBUTIONS, AND TRANSFERS (4,253,623) 413,894 129,551 196,238 277,618 50,621
LOANS:
Repayments 32,114 4,538 5,510 4,297 1,844
Distributions (38,991) (39,627) (4,024) (3,513) (8,435) (2,136)
DISTRIBUTIONS TO PARTICIPANTS (458,296) (146,872) (18,095) (67,382) (8,287) (2,790)
TRUSTEES AND ADMINISTRATIVE (15,805) (4,411) (441) (1,244) (155)
FEES ------------ ------------ ---------- ---------- -------- --------
INCREASE (DECREASE) IN NET ASSETS (4,766,715) 255,098 111,529 129,609 265,193 47,384
NET ASSETS AVAILABLE FOR BENEFITS 8,475,547 2,772,725 179,881 648,481 443,988 65,945
AT BEGINNING OF YEAR ------------ ------------ ---------- ---------- -------- --------
NET ASSETS AVAILABLE FOR BENEFITS $ 3,708,832 $ 3,027,823 $ 291,410 $ 778,090 $ 709,181 $ 113,329
AT END OF YEAR ------------ ------------ ---------- ---------- -------- --------
------------ ------------ ---------- ---------- -------- --------
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
NET INVESTMENT INCOME (LOSS) IN
MASTER TRUSTS $ (25,694) $ (53,030) $ (7,606) $ 26,417 $ (12,294)
CONTRIBUTIONS:
Employee pretax contributions 62,812 177,853 30,320 56,539
Rollover contributions 442 6,549 8,337 2,232
----------- ----------- ---------- ---------
Total contributions 63,254 184,402 38,657 58,771
TRANSFERS (TO) FROM OTHER
FUNDS 165,144 1,083,150 181,008 242,738 $ (1,522,330)
TOTAL INVESTMENT INCOME (LOSS), ----------- ----------- ---------- --------- ----------- -----------
CONTRIBUTIONS, AND TRANSFERS 202,704 1,214,522 212,059 327,926 (1,522,330) (12,294)
LOANS:
Repayments 7,532 23,275 1,359 4,849 (557,666)
Distributions (4,236) (28,331) (54) (5,720) 514,531
DISTRIBUTIONS TO PARTICIPANTS (10,656) (9,959) (8,234) (13,703)
TRUSTEES AND ADMINISTRATIVE (783) (2,608) (481) (1,063)
FEES ----------- ----------- ---------- --------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS 194,561 1,196,899 204,649 312,289 (1,522,330) (55,429)
NET ASSETS AVAILABLE FOR BENEFITS 314,874 728,253 135,325 518,865 3,738,846 1,124,704
AT BEGINNING OF YEAR ----------- ----------- ---------- --------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 509,435 $ 1,925,152 $ 339,974 $ 831,154 $ 2,216,516 $ 1,069,275
AT END OF YEAR -------------------------------- --------- ----------- ------------
------------ ----------- ---------- --------- ----------- ------------
See notes to financial statements.
7
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1993
- --------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
- --------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS
COMBINED INCOME BOND PLUS PLUS S&P 500
TOTAL FUND FUND FUND FUND FUND
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 4,381,034 $ 480,646 $ 18,731 $ 46,240 $ 1,471,625 $ 1,172,230
CONTRIBUTIONS:
Employee pretax contributions 3,816,644 1,197,070 87,051 121,396 892,946 1,073,871
Rollover contributions 390,643 102,561 14,266 16,674 56,275 81,844
------------- ------------- ---------- ---------- ------------- -------------
Total contributions 4,207,287 1,299,631 101,317 138,070 949,221 1,155,715
TRANSFERS FROM (TO) OTHER
FUNDS 1,233,074 (67,648) 788,898 (118,781) (960,248)
TRANSFERS (TO) FROM OTHER
PLANS (106,504) (29,216) (6,718) (6,348) (13,504) (18,459)
------------- ------------- ---------- ---------- ------------- -------------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS, AND TRANSFERS 8,481,817 2,984,135 45,682 966,860 2,288,561 1,349,238
LOANS:
Repayments 185,568 8,276 4,137 96,792 110,888
Distributions (163,114) (12,202) (3,675) (156,047) (158,218)
DISTRIBUTIONS TO PARTICIPANTS (3,221,808) (1,236,699) (13,254) (10,888) (522,264) (513,069)
TRUSTEES AND ADMINISTRATIVE (119,887) (30,456) (1,128) (3,133) (36,455) (26,337)
FEES) ------------- ------------- ---------- ---------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS 5,140,122 1,739,434 27,374 953,301 1,670,587 762,502
NET ASSETS AVAILABLE FOR BENEFITS 56,524,870 15,000,093 337,810 10,215,946 11,810,511
AT BEGINNING OF YEAR ------------- ------------- ---------- ---------- ------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS $ 61,664,992 $ 16,739,527 $ 365,184 $ 953,301 $ 11,886,533 $ 12,573,013
AT END OF YEAR ------------- ------------- ---------- ---------- ------------- -------------
------------- ------------- ---------- ---------- ------------- -------------
FROZEN
FIXED HONEYWELL UNITED COLUMBIA VANGUARD
INCOME STOCK INCOME JANUS SPECIAL WORLD U.S.
FUND FUND FUND FUND FUND GROWTH FUND
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 756,790 $ 177,101 $ 10,468 $ 25,193 $ 26,846 $ 2,387
CONTRIBUTIONS:
Employee pretax contributions 317,185 8,883 36,072 19,175 3,345
Rollover contributions 26,640 10,161 47,423 4,412 7,242
------------ ---------- ---------- ---------- ---------
Total contributions 343,825 19,044 83,495 23,587 10,587
TRANSFERS FROM (TO) OTHER
FUNDS (2,677,882) (74,887) 153,664 549,875 395,738 55,382
TRANSFERS (TO) FROM OTHER (28,618) 2,221
PLANS ------------ ------------ ---------- ---------- ---------- ---------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS, AND TRANSFERS (1,949,710) 448,260 183,176 658,563 446,171 68,356
LOANS:
Repayments 43,068 421 2,836 1,098 386
Distributions (112,153) (58,822) (2,024) (9,331) (2,137) (2,744)
DISTRIBUTIONS TO PARTICIPANTS (797,082) (115,323) (1,561) (3,061) (845)
TRUSTEES AND ADMINISTRATIVE (17,189) (3,022) (131) (526) (299) (53)
FEES) ------------ ------------ ---------- ---------- ---------- ---------
INCREASE (DECREASE) IN NET ASSETS (2,876,134) 314,161 179,881 648,481 443,988 65,945
NET ASSETS AVAILABLE FOR BENEFITS 11,351,681 2,458,564
AT BEGINNING OF YEAR ------------ ------------ ---------- ---------- ---------- ---------
NET ASSETS AVAILABLE FOR BENEFITS $ 8,475,547 $ 2,772,725 $ 179,881 $ 648,481 $ 443,988 $ 65,945
AT END OF YEAR ------------ ------------ ---------- ---------- ---------- ---------
------------ ------------ ---------- ---------- ---------- ---------
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
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 32,993 $ 70,050 $ 6,646 $ 24,144 $ 58,944
CONTRIBUTIONS:
Employee pretax contributions 10,162 19,904 3,316 26,268
Rollover contributions 7,822 8,295 7,028
------------ ---------- ---------- ----------
Total contributions 17,984 28,199 3,316 33,296
TRANSFERS FROM (TO) OTHER
FUNDS 266,759 633,597 125,371 466,531 $ (769,443)
TRANSFERS (TO) FROM OTHER (5,862)
PLANS ------------------------------ ---------- ------------ ------------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS, AND TRANSFERS 317,736 731,846 135,333 523,971 (775,305) 58,944
LOANS:
Repayments 975 1,134 69 1,607 (457,255)
Distributions (243) (1,197) (4,994) 686,901
DISTRIBUTIONS TO PARTICIPANTS (3,373) (3,086) (1) (1,302)
TRUSTEES AND ADMINISTRATIVE (221) (444) (76) (417)
FEES ------------------------------ ---------- ------------ ------------ -----------
INCREASE (DECREASE) IN NET ASSETS 314,874 728,253 135,325 518,865 (775,305) 288,590
NET ASSETS AVAILABLE FOR BENEFITS 4,514,151 836,114
AT BEGINNING OF YEAR ------------ ---------- ---------- ---------- ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS $ 314,874 $ 728,253 $ 135,325 $ 518,865 $ 3,738,846 $ 1,124,704
AT END OF YEAR ------------ ---------- ---------- ---------- ------------ ------------
------------ ---------- ---------- ---------- ------------ ------------
See notes to financial statements.
8
HONEYWELL RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1994 AND 1993
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING - The financial statements of the Honeywell Retirement
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 was amended effective June 30, 1991 to
adopt the procedures, terms, and conditions for the granting and
administration of loans to participants. These procedures allow
participants to apply for and obtain a loan in an amount as defined in the
Plan (not less than $1,000 and not greater than $50,000 or 50% of their
pretax 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
9
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 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 and Poor's 500 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.
10
SCUDDER INTERNATIONAL FUND - Intends to diversify its foreign
investments among several countries and not concentrate investments in
any particular industry.
T. ROWE PRICE INTERNATIONAL STOCK FUND - Invests primarily in stock of
established companies outside the United States with proven
performance records.
T. ROWE PRICE SMALL CAP VALUE FUND - Invests primarily in common
stocks of small, rapidly growing companies.
T. ROWE PRICE EQUITY INCOME FUND - Invests primarily in common stocks
of large, well-established companies that pay above-average dividends.
PLAN STATUS - The Plan has received a favorable determination letter from
the Internal Revenue Service stating that the Plan was qualified under the
applicable sections of the Internal Revenue Code.
PLAN TERMINATION - Although it has not expressed any intent to do so, the
Sponsor has the right under the Plan to discontinue its contributions at any
time and to terminate the Plan, subject to the provisions of the Employee
Retirement Income 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, 1994 and 1993, the Plan's Isolated Funds consisted primarily
of investments in Executive Life Insurance Company (Executive Life)
guaranteed investment contracts (GICs), with approximately 3% and .87% of
total net assets available for benefits. In 1991, the State of California
insurance commissioner seized Executive Life and placed it in a court-
supervised conservatorship. In 1993 and 1994, distributions have been
received from the conservator totaling approximately 67% 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, 1994 and 1993, 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.
11
The following table presents the fair value of investments held in master
trusts:
1994 1993
Investments at fair value:
Custom Funds:
Government Income Fund $ 305,889,947 $ 209,624,454
Short-term Bond Fund 10,256,109 13,255,684
Bonds Plus Fund 17,508,593 19,587,985
Stocks Plus Fund 232,214,890 252,637,838
S&P 500 Fund 226,631,967 240,823,722
Fixed Income Fund (a) 53,415,980 124,019,602
Honeywell Stock Fund 173,540,997 157,920,810
Mutual funds, primarily equity securities 155,759,921 91,770,887
Participants' loans 26,287,970 24,145,987
---------------- ----------------
$ 1,201,506,374 $ 1,133,786,969
---------------- ----------------
---------------- ----------------
(a) at contract value
Investment income for master trust is as follows:
1994 1993
Net (depreciation)/appreciation in fair value of investments:
Custom Funds:
Short-term Bond Fund $ (51,556) $ 564,780
Bonds Plus Fund (272,642) 827,967
Stocks Plus Fund (2,285,805) 31,291,545
S&P 500 Fund 3,088,743 23,377,943
Honeywell Stock Fund (13,531,441) 4,481,379
Mutual funds, primarily equity securities (9,911,323) 1,305,188
------------- -------------
(22,964,024) 61,848,802
Interest and dividends 34,701,490 28,245,232
------------- -------------
$ 11,737,466 $ 90,094,034
------------- -------------
------------- -------------
In 1993, the Sponsor transferred the GICs issued by Executive Life and
Mutual Benefit Life Insurance Company to First Trust National Association.
A master trust was established for the investment of these assets of the
Plan and several other Honeywell-sponsored retirement plans. Each
participating retirement plan has an undivided interest in the master
trust. At December 31, 1994 and 1993 the Plan's interest in the net assets
of the master trust was approximately 6%. The contract value of the GICs
for the master trust was $38,954,178 and $67,277,792 at December 31, 1994
and 1993, respectively.
5. PARTIES-IN-INTEREST TRANSACTIONS
There were no prohibited party-in-interest transactions during the years
ended December 31, 1994 and 1993.
6. INFORMATION PROVIDED BY TRUSTEES
Plan funds are held in trust by trustees for the sole purpose of making
investments, plan payments, and for paying trust operating expenses.
Trustees appointed by the Honeywell Pension and Retirement
12
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 $287,579 and $(1,034,745) as of
December 31, 1994 and 1993, respectively. Such adjustments are primarily
recorded for the purpose of converting the trustees' statements from the
cash basis to the accrual basis of accounting and to reflect the impact of
participant loan activity.
The Government Income Fund, Stocks Plus Fund, Frozen Fixed Income Fund,
and S&P 500 Fund individually represent 5% or more of net assets available
for benefits.
13
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 28, 1995 By: /s/ James E. Porter
------------------------------------
James E. Porter
Its: Vice President, Human Resources
INDEX TO EXHIBITS
Exhibits Page
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23.1 Consent of Deloitte & Touche LLP