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: 33-44283 and 33-59357
A. Full title of the plan and address of the plan, if different from that
of the issuer named below:
HONEYWELL RETIREMENT SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
HONEYWELL INC.
Honeywell Plaza
Minneapolis, Minnesota 55408
Included herewith and set forth on pages 2 to 10 hereof are the Honeywell
Retirement Savings 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.
HONEYWELL RETIREMENT
SAVINGS PLAN
FINANCIAL STATEMENTS AS OF AND FOR THE
YEARS ENDED DECEMBER 31, 1996 AND 1995
AND INDEPENDENT AUDITORS' REPORT
HONEYWELL RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
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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
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, 1996 and 1995 and for the years then
ended, as 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. It is not intended to present information regarding the net assets
available for benefits and changes in net assets available for benefits of the
individual funds, and 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
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996 (AMOUNTS IN THOUSANDS)
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GOVERNMENT SHORT-TERM BONDS STOCKS HONEYWELL
COMBINED INCOME BOND PLUS PLUS S&P 500 STOCK
TOTAL FUND FUND FUND FUND FUND FUND
ASSETS:
Investments in Honeywell:
Master Trusts
First Trust Isolated
Other receivables
Total assets
LIABILITIES:
Administration fees payable
Other payables
Total liabilities
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ - $ - $ - $ - $ - $ - $ -
-------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- --------
- --------------------------------------------------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
------------------------------------------------------------------------------------------
VANGUARD T. ROWE
UNITED COLUMBIA WORLD PRICE
INCOME SPECIAL TEMPLETON JANUS GROWTH INTERNATIONAL
FUND FUND FUND FUND FUND FUND
ASSETS:
Investments in Honeywell:
Master Trusts
First Trust Isolated
Other receivables
Total assets
LIABILITIES:
Administration fees payable
Other payables
Total liabilities
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ - $ - $ - $ - $ - $ -
------- -------- ------- ------- ------- --------
------- -------- ------- ------- ------- --------
- ------------------------------------------------------------------------------------------
----------------------------------------------------------
T. ROWE T. ROWE
PRICE PRICE
SMALL CAP EQUITY
VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUNDS LOANS
ASSETS:
Investments in Honeywell:
Master Trusts
First Trust Isolated
Other receivables
Total assets
LIABILITIES:
Administration fees payable
Other payables
Total liabilities
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ - $ - $ - $ -
------- ------- ------- -------
------- ------- ------- -------
See accompanying notes to financial statements.
2
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS)
- -----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS HONEYWELL
COMBINED INCOME BOND PLUS PLUS S&P 500 STOCK
TOTAL FUND FUND FUND FUND FUND FUND
ASSETS:
Investments in Honeywell -
Master Trusts $ 73,978 $ 28,261 $ 534 $ 1,308 $ 12,475 $ 17,503 $ 4,727
Investments at First Trust 1,205
Contributions receivable 79 21 1 2 25 21
Other receivables 282 263 3 2 7 5
--------- --------- -------- -------- --------- --------- ---------
Total assets 75,544 28,545 538 1,312 12,507 17,529 4,727
LIABILITIES:
Administration fees payable 14 6 1 3 4
Other payables 268 248 4 2 6 (1) 9
--------- --------- -------- -------- --------- --------- ---------
Total liabilities 282 254 4 3 9 3 9
--------- --------- -------- -------- --------- --------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 75,262 $ 28,291 $ 534 $ 1,309 $ 12,498 $ 17,526 $ 4,718
--------- --------- -------- -------- --------- --------- ---------
--------- --------- -------- -------- --------- --------- ---------
- -------------------------------------------------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
--------------------------------------------------------------------------------------
VANGUARD T. ROWE
UNITED COLUMBIA WORLD SCUDDER PRICE
INCOME JANUS SPECIAL GROWTH INTERNATIONAL INTERNATIONAL
FUND FUND FUND FUND FUND FUND
ASSETS:
Investments in Honeywell -
Master Trusts $ 584 $ 1,085 $ 1,123 $ 584 $ 434 $ 1,572
Investments at First Trust
Contributions receivable 1 1 2 1 1 2
Other receivables
------- -------- -------- ------- ------- --------
Total assets 585 1,086 1,125 585 435 1,574
LIABILITIES:
Administration fees payable
Other payables
Total liabilities
------- -------- -------- ------- ------- --------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 585 $ 1,086 $ 1,125 $ 585 $ 435 $ 1,574
------- -------- -------- ------- ------- --------
------- -------- -------- ------- ------- --------
- ------------------------------------------------------------------------------------------
-----------------------------------------------------
T. ROWE T. ROWE
PRICE PRICE
SMALL CAP EQUITY
VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUNDS LOANS
ASSETS:
Investments in Honeywell -
Master Trusts $ 613 $ 1,560 $ 1,615
Investments at First Trust $ 1,205
Contributions receivable 1
Other receivables 2
Total assets 614 1,562 1,205 1,615
------- -------- -------- ---------
LIABILITIES:
Administration fees payable
Other payables
Total liabilities
------- -------- -------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 614 $ 1,562 $ 1,205 $ 1,615
------- -------- -------- ---------
------- -------- -------- ---------
See accompanying notes to financial statements.
3
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1996 (AMOUNTS IN THOUSANDS)
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--------------------------------------------------------------------------------
GOVERNMENT SHORT-TERM BONDS STOCKS HONEYWELL
COMBINED INCOME BOND PLUS PLUS S&P 500 STOCK
TOTAL FUND FUND FUND FUND FUND FUND
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 11,255 $ 1,416 $ 22 $ 145 $ 1,875 $ 4,131 $ 1,896
CONTRIBUTIONS:
Employee pretax contributions 4,081 903 56 113 597 1,115 464
---------- -------- --------- ---------- --------- --------- ---------
Total contributions 4,081 903 56 113 597 1,115 464
TRANSFERS (TO) FROM OTHER
FUNDS (1,413) (18) 276 (349) 56 417
---------- -------- --------- ---------- --------- --------- ---------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS 15,336 906 60 534 2,123 5,302 2,777
LOANS:
Repayments 264 10 18 112 226 89
Distributions (345) (6) (24) (125) (248) (116)
DISTRIBUTIONS TO PARTICIPANTS (5,197) (2,864) (64) (68) (704) (936) (293)
TRUSTEES' AND ADMINISTRATIVE
FEES (110) (41) (2) (4) (21) (32) (4)
MERGER TO IPP (85,291) (26,211) (532) (1,765) (13,883) (21,838) (7,171)
---------- -------- --------- ---------- --------- --------- ---------
(DECREASE) INCREASE IN
NET ASSETS (75,262) (28,291) (534) (1,309) (12,498) (17,526) (4,718)
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 75,262 28,291 534 1,309 12,498 17,526 4,718
---------- -------- --------- ---------- --------- --------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ - $ - $ - $ - $ - $ - $ -
---------- -------- --------- ---------- --------- --------- ---------
---------- -------- --------- ---------- --------- --------- ---------
- -----------------------------------------------------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
---------------------------------------------------------------------------------------
VANGUARD
UNITED COLUMBIA WORLD SCUDDER
INCOME SPECIAL TEMPLETON JANUS GROWTH INTERNATIONAL
FUND FUND FUND FUND FUND FUND
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 126 $ 144 $ 19 $ 248 $ 204 $ 32
CONTRIBUTIONS:
Employee pretax contributions 65 121 11 123 115 17
-------- -------- -------- ------- -------- -------
Total contributions 65 121 11 123 115 17
TRANSFERS (TO) FROM OTHER
FUNDS 116 154 311 324 (477)
-------- -------- -------- ------- -------- -------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS 191 381 184 682 643 (428)
LOANS:
Repayments 12 13 16 11 2
Distributions (9) (18) (16) (26) (3)
DISTRIBUTIONS TO PARTICIPANTS (24) (14) (2) (29) (8) (6)
TRUSTEES' AND ADMINISTRATIVE
FEES (1) (1) (1)
MERGER TO IPP (755) (1,486) (182) (1,738) (1,204)
-------- -------- -------- ------- -------- -------
(DECREASE) INCREASE IN
NET ASSETS (585) (1,125) (1,086) (585) (435)
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 585 1,125 1,086 585 435
-------- -------- -------- ------- -------- -------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ - $ - $ - $ - $ - $ -
-------- -------- -------- ------- -------- -------
-------- -------- -------- ------- -------- -------
- ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------
T. ROWE T. ROWE
T. ROWE PRICE PRICE
PRICE SMALL CAP EQUITY
INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUNDS LOANS
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 289 $ 182 $ 388 $ 138
CONTRIBUTIONS:
Employee pretax contributions 157 78 146
--------- -------- ------- ---------
Total contributions 157 78 146
TRANSFERS (TO) FROM OTHER
FUNDS 266 131 408 $ (202)
--------- -------- ------- -------- ---------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS 712 391 942 (202) 138
LOANS:
Repayments 35 7 22 (837)
Distributions (26) (9) (30) 1,001
DISTRIBUTIONS TO PARTICIPANTS (70) (55) (60)
TRUSTEES' AND ADMINISTRATIVE
FEES (1) (1) (1)
MERGER TO IPP (2,224) (947) (2,435) (1,003) (1,917)
--------- -------- ------- -------- --------
(DECREASE) INCREASE IN
NET ASSETS (1,574) (614) (1,562) (1,205) (1,615)
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 1,574 614 1,562 1,205 1,615
--------- -------- ------- ------- --------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ - $ - $ - $ - $ -
--------- -------- ------- ------ -------
--------- -------- ------- ------ -------
See accompanying notes to financial statements.
4
HONEYWELL RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS)
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FROZEN
GOVERNMENT SHORT-TERM BONDS STOCKS FIXED
COMBINED INCOME BOND PLUS PLUS S&P 500 INCOME
TOTAL FUND FUND FUND FUND FUND FUND
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 12,259 $ 1,469 $ 48 $ 192 $ 2,651 $ 4,612 $ 133
CONTRIBUTIONS:
Employee pretax contributions 3,835 1,047 58 110 660 979 (5)
Rollover contributions 830 145 10 49 61 246
--------- -------- ------- ------- -------- -------- --------
Total contributions 4,665 1,192 68 159 721 1,225 (5)
TRANSFERS FROM (TO) OTHER
FUNDS 4,506 114 227 (843) 538 (3,658)
TRANSFERS (TO) FROM OTHER
PLANS (52) (26) (1) (5) (6) (3)
--------- -------- ------- ------- -------- -------- --------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS 16,872 7,141 230 577 2,524 6,369 (3,533)
LOANS:
Repayments 283 9 10 111 166
Distributions (372) (9) (11) (174) (283) (19)
DISTRIBUTIONS TO PARTICIPANTS (4,266) (2,130) (36) (11) (792) (596) (152)
TRUSTEES' AND ADMINISTRATIVE
FEES (122) (48) (2) (3) (23) (30) (5)
--------- -------- ------- ------- -------- -------- --------
INCREASE (DECREASE) IN
NET ASSETS 12,484 4,874 192 562 1,646 5,626 (3,709)
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 62,778 23,417 342 747 10,852 11,900 3,709
--------- -------- ------- ------- -------- -------- --------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 75,262 $ 28,291 $ 534 $ 1,309 $ 12,498 $ 17,526 $ -
--------- -------- ------- ------- -------- -------- --------
--------- -------- ------- ------- -------- -------- --------
- ---------------------------------------------------------------------------------------------------------------------------
(SUPPLEMENTAL INFORMATION BY FUND)
----------------------------------------------------------------------------------------
VANGUARD
HONEYWELL UNITED COLUMBIA WORLD SCUDDER
STOCK INCOME JANUS SPECIAL GROWTH INTERNATIONAL
FUND FUND FUND FUND FUND FUND
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 1,753 $ 92 $ 237 $ 230 $ 95 $ 57
CONTRIBUTIONS:
Employee pretax contributions 311 52 87 109 43 60
Rollover contributions 69 79 34 24 26 3
--------- ------ ------ ------- -------- ---------
Total contributions 380 131 121 133 69 63
TRANSFERS FROM (TO) OTHER
FUNDS (214) 93 40 129 319 (176)
TRANSFERS (TO) FROM OTHER
PLANS (8) (1)
--------- ------ ------ ------- -------- ---------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS 1,911 315 398 492 483 (56)
LOANS:
Repayments 48 5 11 12 4 6
Distributions (90) (15) (23) (7) (8) (4)
DISTRIBUTIONS TO PARTICIPANTS (175) (12) (77) (81) (6) (19)
TRUSTEES' AND ADMINISTRATIVE
FEES (4) (1) (1) (1)
--------- ------ ------ ------- -------- ---------
INCREASE (DECREASE) IN
NET ASSETS 1,690 293 308 416 472 (74)
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 3,028 292 778 709 113 509
--------- ------ ------ ------- -------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $4,718 $585 $1,086 $1,125 $585 $435
--------- ------ ------ ------- -------- ---------
--------- ------ ------ ------- -------- ---------
- ---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------
T. ROWE T. ROWE
T. ROWE PRICE PRICE
PRICE SMALL CAP EQUITY
INTERNATIONAL VALUE INCOME ISOLATED PARTICIPANT
FUND FUND FUND FUNDS LOANS
NET INVESTMENT INCOME IN
MASTER TRUSTS $ 159 $ 116 $ 348 $ 67
CONTRIBUTIONS:
Employee pretax contributions 161 45 118
Rollover contributions 2 13 69
--------- -------- -------
Total contributions 163 58 187
TRANSFERS FROM (TO) OTHER
FUNDS (561) 141 237 $(1,012) 120
TRANSFERS (TO) FROM OTHER
PLANS (1) (1)
--------- ------- --------- -------- ---------
TOTAL INVESTMENT INCOME,
CONTRIBUTIONS,
AND TRANSFERS (240) 314 772 (1,012) 187
LOANS:
Repayments 31 4 11 (711)
Distributions (36) (10) (9) 1,070
DISTRIBUTIONS TO PARTICIPANTS (104) (33) (42)
TRUSTEES' AND ADMINISTRATIVE
FEES (2) (1) (1)
--------- ------- --------- -------- ---------
INCREASE (DECREASE) IN
NET ASSETS (351) 274 731 (1,012) 546
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING
OF YEAR 1,925 340 831 2,217 1,069
--------- ------- --------- -------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ 1,574 $ 614 $ 1,562 $ 1,205 $ 1,615
--------- ------- --------- -------- ---------
--------- ------- --------- -------- ---------
See accompanying notes to financial statements.
5
HONEYWELL RETIREMENT SAVINGS PLAN
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 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 5 for a listing of the
appointed trustees.
CONTRIBUTIONS - The following contributions are made to the Plan:
(a) The Sponsor contributes to the Plan, on behalf of participants,
various percentages of the participants' pay, as elected by the
participants. The maximum pretax and after-tax contribution
percentages are determined by the Honeywell Pension Retirement
Committee. The participants elect their own contribution levels,
subject to this maximum percentage. Contributions are
subject to certain limitations.
(b) Participants who have received distributions from other qualified
plans under Section 401(a) of the Internal Revenue Code or from
individual retirement plans under Sections 402 and 408 of the code may
transfer (rollover) all or part of such distributions to their
accounts.
LOANS TO PARTICIPANTS - The Plan allows participants to apply for and
obtain a loan in an amount as defined in the Plan (not less than $1,000 and
not greater than $50,000 or 50% of their pretax or pretax rollover account
balances) from the balance of their accounts. The loans can be repaid
through payroll deductions over the period of 12 to 48 months or up to 180
months for the purchase of a primary residence, or they can be repaid in
full at any time that is at least 6 months following the date of the loan.
Interest is charged at a rate equal to prime rate plus 1%. Payments of
principal and interest are credited to the participants' accounts. Also,
participants may have only one outstanding loan at a time.
6
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 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 participant contribution 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.
COLUMBIA SPECIAL FUND - Invests primarily in smaller companies with
capitalizations that are less than the average for the companies
included in the Standard & Poor's 500 Composite Stock Index.
TEMPLETON FUND - A global stock fund that invests primarily in common
stock of companies of any nation and not concentrated in any particular
industry.
JANUS FUND - Invests primarily in a combination of large, established
corporations and small, rapidly emerging companies.
VANGUARD WORLD GROWTH FUND - Invests primarily in high-quality,
established growth stocks of companies with exceptional earnings
records, strong market positions, good financial strength, and low
sensitivity to changing economic conditions.
7
SCUDDER INTERNATIONAL FUND - Intends to diversify its foreign
investments among several countries and not concentrate investments in
any particular industry. This fund option was replaced in 1996 by the
Templeton Fund.
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. 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, 1996 and 1995, the Plan's interest in the net
assets of the master trusts was approximately 0% and 4.8%, 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 Bond 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
------------ ------------
------------ ------------
8
Investment income for master trust is as follows (in thousands):
1996 1995
Net appreciation (depreciation) 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 0% and 6%, respectively, and
the contract value of the GICs for the master trust was approximately $0
and $20.9 million at December 31, 1996 and 1995, respectively.
4. PARTIES-IN-INTEREST TRANSACTIONS
There were no prohibited party-in-interest transactions during the years
ended December 31, 1996 and 1995.
5. INFORMATION PROVIDED BY TRUSTEES
Plan funds are held in trust by trustees for the sole purpose of making
investments, plan payments, and for paying trust operating expenses.
Trustees appointed by the Honeywell Pension and Retirement Committee as of
December 31, 1996 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 $88,877 and $907,805 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.
9
6. PLAN MERGER
Effective December 31, 1996, the Plan was merged into the Investment Plus
Plan (IPP) which is also sponsored by Honeywell and participates in the
same master trusts.
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 RETIREMENT SAVINGS PLAN
Dated: June 26, 1997 By: /s/ Jim Porter
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