SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[ X ] Annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1995
OR
[ ] Transition report pursuant to Section 15(d) of the Securities
Exchange Act of 1934 (NO FEE REQUIRED)
For the transition period from to
---------------------- -------------------
Commission File Numbers: 33-44284 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 1 to 10 hereof are the Honeywell
Investment Plus 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.
INVESTMENT PLUS PLAN OF
HONEYWELL INC.
FINANCIAL STATEMENTS AS OF AND FOR THE
YEARS ENDED DECEMBER 31, 1995 AND 1994
AND INDEPENDENT AUDITORS' REPORT
INVESTMENT PLUS PLAN OF HONEYWELL INC.
TABLE OF CONTENTS
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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
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, 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
INVESTMENT PLUS PLAN OF HONEYWELL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS)
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SUPPLEMENTAL INFORMATION BY FUND
----------------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM HONEYWELL UNITED
COMBINED INCOME BOND BONDS STOCKS S&P STOCK INCOME
TOTAL FUND FUND PLUS FUND PLUS FUND 500 FUND FUND FUNDS
ASSETS:
Investment in Master
Trusts $ 1,509,441 $ 337,213 $ 14,060 $ 26,505 $ 262,816 $ 306,066 $ 295,310 $ 18,088
Contributions
receivable 7,753 159 12 25 166 182 6,978 19
Other receivables 3,310 3,115 87 32 57 19
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
Total assets 1,520,504 340,487 14,159 26,562 263,039 306,267 302,288 18,107
LIABILITIES:
Administration fees
payable 221 67 10 13 61 70
Other payables 3,425 3,123 92 40 156 7
----------- ----------- ---------- ---------- ---------- ---------- ----------
Total liabilities 3,646 3,190 102 53 217 70 7
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS AT END
OF YEAR $ 1,516,858 $ 337,297 $ 14,057 $ 26,509 $ 262,822 $ 306,197 $ 302,281 $ 18,107
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
SUPPLEMENTAL INFORMATION BY FUND
----------------------------------------------------------------------------------------------------------
T. ROWE T. ROWE T. ROWE
VANGUARD SCUDDER PRICE PRICE PRICE
COLUMBIA WORLD U.S. INTER- INTER- SMALL EQUITY
JANUS SPECIAL GROWTH NATIONAL NATIONAL CAP VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUND FUND FUND FUND FUNDS LOANS
ASSETS:
Investment in Master
Trusts $ 37,057 $ 37,183 $ 19,279 $ 15,031 $ 38,279 $ 21,659 $ 34,458 $ 17,558 $ 28,879
Contributions
receivable 42 38 28 13 35 21 35
Other receivables
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Total assets 37,099 37,221 19,307 15,044 38,314 21,680 34,493 17,558 28,879
LIABILITIES:
Administration fees
payable
Other payables 2 2 2 1
--------- --------- --------- ---------
Total liabilities 2 2 2 1
--------- --------- --------- --------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS AT END
OF YEAR $ 37,097 $ 37,219 $ 19,307 $ 15,042 $ 38,313 $ 21,680 $ 34,493 $ 17,558 $ 28,879
--------- --------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- --------- ---------
See accompanying notes to financial statements.
2
INVESTMENT PLUS PLAN OF HONEYWELL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1994 (AMOUNTS IN THOUSANDS)
- ---------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION BY FUND
---------------------------------------------------------------------------------------
SHORT-TERM
COMBINED GOVERNMENT BOND BONDS STOCKS S&P FROZEN HONEYWELL
TOTAL INCOME FUND FUND PLUS FUND PLUS FUND 500 FUND FIXED FUND STOCK FUND
ASSETS:
Investment in Master
Trusts $ 1,170,337 $ 281,667 $ 9,895 $ 16,762 $ 220,377 $ 214,386 $ 49,499 $ 170,189
Contributions receivable 6,728 365 30 52 408 396 5,050
Other receivables 2,867 2,419 12 68 368
----------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total assets 1,179,932 284,451 9,925 16,826 220,853 214,782 49,867 175,239
LIABILITIES:
Administration fees
payable 177 51 4 6 51 50 15
Other payables 2,834 2,404 17 49 364
----------- ---------- ---------- ---------- ---------- ---------- ----------
Total liabilities 3,011 2,455 4 23 51 99 379
----------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS AT END
OF YEAR $ 1,176,921 $ 281,996 $ 9,921 $ 16,803 $ 220,802 $ 214,683 $ 49,488 $ 175,239
----------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
----------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
SUPPLEMENTAL INFORMATION BY FUND
------------------------------------------------------------------------------------------------------------
T. ROWE T. ROWE T. ROWE
VANGUARD SCUDDER PRICE PRICE PRICE
UNITED COLUMBIA WORLD U.S. INTER- INTER- SMALL EQUITY
INCOME JANUS SPECIAL GROWTH NATIONAL NATIONAL CAP VALUE INCOME ISOLATED PARTICIPANT
FUNDS FUND FUND FUND FUND FUND FUND FUND FUNDS LOANS
ASSETS:
Investment in Master
Trusts $ 9,693 $ 23,929 $ 24,565 $ 3,761 $ 16,583 $ 45,498 $ 10,777 $ 15,305 $ 32,452 $ 24,999
Contributions
receivable 26 74 74 15 47 120 34 37
Other receivables
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total assets 9,719 24,003 24,639 3,776 16,630 45,618 10,811 15,342 32,452 24,999
LIABILITIES:
Administration fees
payable
Other payables
Total liabilities
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
NET ASSETS AVAILABLE
FOR BENEFITS AT END
OF YEAR $ 9,719 $ 24,003 $ 24,639 $ 3,776 $ 16,630 $ 45,618 $ 10,811 $ 15,342 $ 32,452 $ 24,999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
See accompanying notes to financial statements.
3
INVESTMENT PLUS PLAN OF HONEYWELL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS)
- ------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION BY FUND
------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM
COMBINED INCOME BOND BONDS STOCKS S&P
TOTAL FUND FUND PLUS FUND PLUS FUND 500 FUND
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
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
SUPPLEMENTAL INFORMATION BY FUND
-------------------------------------------------------------------------------------------------
VANGUARD
FROZEN HONEYWELL UNITED COLUMBIA WORLD U.S.
FIXED STOCK INCOME JANUS SPECIAL GROWTH
FUND FUND FUNDS FUND FUND FUND
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 contribution 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
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
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
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 contribution 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) 10,869 191,151 (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
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
See accompanying notes to financial statements.
4
INVESTMENT PLUS PLAN OF HONEYWELL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1994 (AMOUNTS IN THOUSANDS)
- ------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION BY FUND
------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM
COMBINED INCOME BOND BONDS STOCKS S&P
TOTAL FUND FUND PLUS FUND PLUS FUND 500 FUND
NET INVESTMENT INCOME
(LOSS) IN MASTER
TRUSTS $ 9,059 $ 9,986 $ (50) $ (190) $ (172) $ 2,920
CONTRIBUTIONS:
Employer contributions 19,894
Employee pretax contributions 73,756 12,539 1,414 2,338 17,043 16,599
Rollover contributions 2,751 501 94 243 190 283
---------- ---------- ---------- ---------- ---------- ----------
Total contributions 96,401 13,040 1,508 2,581 17,233 16,882
TRANSFERS FROM (TO)
OTHER FUNDS 89,673 (3,748) (3,526) (24,878) (22,101)
TRANSFERS FROM
OTHER PLANS 313 17 95 14 12 6
---------- ---------- ---------- ---------- ---------- ----------
TOTAL INVESTMENT
INCOME (LOSS), CON-
TRIBUTIONS, AND
TRANSFERS 105,773 112,716 (2,195) (1,121) (7,805) (2,293)
LOANS:
Repayments 2,848 185 330 2,957 2,940
Distributions (3,309) (156) (254) (3,274) (3,383)
DISTRIBUTIONS TO
PARTICIPANTS (60,461) (22,220) (764) (742) (10,250) (9,863)
TRUSTEES' AND ADMINI-
STRATIVE FEES (2,552) (597) (38) (61) (610) (581)
---------- ---------- ---------- ---------- ---------- ----------
INCREASE (DECREASE) IN
NET ASSETS 42,760 89,438 (2,968) (1,848) (18,982) (13,180)
NET ASSETS AVAILABLE
FOR BENEFITS AT
BEGINNING OF YEAR 1,134,161 192,558 12,889 18,651 239,784 227,863
---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS AT
END OF YEAR $1,176,921 $ 281,996 $ 9,921 $ 16,803 $ 220,802 $ 214,683
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
SUPPLEMENTAL INFORMATION BY FUND
-------------------------------------------------------------------------------------------------
VANGUARD
UNITED COLUMBIA WORLD U.S.
FROZEN FIXED HONEYWELL INCOME JANUS SPECIAL GROWTH
FUND STOCK FUND FUNDS FUND FUND FUND
NET INVESTMENT INCOME
(LOSS) IN MASTER
TRUSTS $ 6,296 $ (8,529) $ (295) $ (260) $ 322 $ 105
CONTRIBUTIONS:
Employer contributions 19,894
Employee pretax contributions 6,439 1,042 3,656 3,049 632
Rollover contributions 227 128 15 236 51
---------- ---------- ---------- ---------- ----------
Total contributions 26,560 1,170 3,671 3,285 683
TRANSFERS FROM (TO)
OTHER FUNDS (65,430) 4,247 3,912 1,348 5,381 1,490
TRANSFERS FROM
OTHER PLANS 12 20 9 37 2 18
---------- ---------- ---------- ---------- ---------- ----------
TOTAL INVESTMENT
INCOME (LOSS), CON-
TRIBUTIONS, AND
TRANSFERS (59,122) 22,298 4,796 4,796 8,990 2,296
LOANS:
Repayments 1,155 159 420 458 71
Distributions (922) (1,096) (155) (378) (505) (54)
DISTRIBUTIONS TO
PARTICIPANTS (5,618) (6,652) (218) (704) (559) (66)
TRUSTEES' AND ADMINI-
STRATIVE FEES (213) (269) (14) (37) (5) (5)
---------- ---------- ---------- ---------- ---------- ----------
INCREASE (DECREASE) IN
NET ASSETS (65,875) 15,436 4,568 4,097 8,379 2,242
NET ASSETS AVAILABLE
FOR BENEFITS AT
BEGINNING OF YEAR 115,363 159,803 5,151 19,906 16,260 1,534
---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS AT
END OF YEAR $ 49,488 $ 175,239 $ 9,719 $ 24,003 $ 24,639 $ 3,776
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
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
NET INVESTMENT INCOME
(LOSS) IN MASTER
TRUSTS $ (665) $ (893) $ (206) $ 440 $ 250
CONTRIBUTIONS:
Employer contributions
Employee pretax contributions 1,976 4,619 1,185 1,225
Rollover contributions 63 280 113 327
---------- ---------- ---------- ----------
Total contributions 2,039 4,899 1,298 1,552
TRANSFERS FROM (TO)
OTHER FUNDS 5,609 18,896 5,864 6,326 $ (23,063)
TRANSFERS FROM
OTHER PLANS 12 36 3 20
---------- ---------- ---------- ---------- ---------- ----------
TOTAL INVESTMENT
INCOME (LOSS), CON-
TRIBUTIONS, AND
TRANSFERS 6,995 22,938 6,959 8,338 (23,063) 250
LOANS:
Repayments 285 706 155 166 (12,835)
Distributions (266) (696) (37) (183) 14,668
DISTRIBUTIONS TO
PARTICIPANTS (522) (1,322) (267) (694)
TRUSTEES' AND ADMINI-
STRATIVE FEES (25) (64) (14) (19)
---------- ---------- ---------- ---------- ---------- ----------
INCREASE (DECREASE) IN
NET ASSETS 6,467 21,562 6,796 7,608 (23,063) 2,083
NET ASSETS AVAILABLE
FOR BENEFITS AT
BEGINNING OF YEAR 10,163 24,056 4,015 7,734 55,515 22,916
---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS AT
END OF YEAR $ 16,630 $ 45,618 $ 10,811 $ 15,342 $ 32,452 $ 24,999
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
See accompanying notes to financial statements.
5
INVESTMENT PLUS PLAN OF HONEYWELL INC.
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 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
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
(1 - 5 years) maturities.
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 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.
7
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 U.S. 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 concentrate in any
particular industry.
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 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, 1995 and 1994, the Plan's Isolated Funds primarily
consisted of investments in Executive Life Insurance Company
(Executive Life) guaranteed investment contracts (GICs), with
approximately 1% and 2% of total net assets available for benefits,
respectively. In 1991, the State of California insurance commissioner
seized Executive Life and placed it in a court-supervised
conservatorship. In 1993, 1994, and 1995, distributions have been
received from the conservator totaling approximately 80% of the
contract balance immediately prior to the conservatorship. 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.
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.
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 retirement plan has an undivided
interest
8
in the master trusts. At December 31, 1995 and 1994, the Plan's
interest in the net assets of the master trusts was approximately 95%.
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):
1995 1994
Investments at fair value:
Custom funds:
Government Income Fund $ 366,474 $ 305,890
Short-Term Bonds Fund 14,601 10,256
Bonds Plus Fund 27,817 17,508
Stocks Plus Fund 278,497 232,215
S&P 500 Fund 324,162 226,632
Fixed Income Fund (a) 53,416
Honeywell Stock Fund 300,564 173,541
Mutual funds, primarily equity
securities 228,849 155,760
Participants' loans 30,623 26,288
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$ 1,571,587 $ 1,201,506
----------- -----------
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(a) At contract value.
Investment income for the master trust is as follows (in thousands):
1995 1994
Net appreciation (depreciation) in fair
value of investments -
Custom funds:
Short-Term Bond Fund $ 1,414 $ (52)
Bonds Plus Fund 4,399 (273)
Stocks Plus Fund 56,870 (2,286)
S&P 500 Fund 86,294 3,089
Honeywell Stock Fund 101,561 (13,531)
Mutual funds, primarily equity
securities 26,821 (9,911)
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277,359 (22,964)
Interest and dividends 43,784 34,701
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$ 321,143 $ 11,737
----------- -----------
----------- -----------
In 1993, the Sponsor transferred the GICs issued by Executive Life and
Mutual Benefit Life Insurance company to First Trust National
Association. A master trust was established for the investment of
these assets of the Plan and several other Honeywell-sponsored
retirement plans. Each participating retirement plan has an undivided
interest in the master trust. At December 31, 1995 and 1994, the
Plan's interest in the net assets of the master trust was
approximately 84%. 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.
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5. PARTIES-IN-INTEREST TRANSACTIONS
There were no prohibited party-in-interest transactions during the
periods 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 and plan payments and paying trust operating
expenses. Trustees appointed by the Honeywell Pension and Retirement
Committee as of December 31, 1994 were T. Rowe Price Trust Company and
First Trust National Association.
The trustees provide the Plan with monthly statements which report all
transactions. The plan administrator has obtained certifications from
the trustees that the information in such statements is complete and
accurate.
The amounts in the accompanying statements of net assets available for
benefits and of changes in net assets available for benefits have been
derived from the information submitted by the trustees, except for
certain adjustments which resulted in increases (decreases) in the
amount of net assets reported of $10,902,074 and $9,627,323 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 at December 31, 1995. As of December 31, 1994,
these same funds, together with the Frozen Fixed Income Fund,
individually represent 5% or more of net assets available for
benefits.
10
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, 1996 By: /s/ Jim Porter
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EXHIBIT INDEX
Exhibit No. Description
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23.1 Consent of Deloitte & Touche LLP