AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 24, 2002.
REGISTRATION NO. 333-
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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HONEYWELL INTERNATIONAL INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
-------------------
DELAWARE
(STATE OR OTHER JURISDICTION OF INCORPORATION OR 22-2640650
ORGANIZATION) (I.R.S. EMPLOYER IDENTIFICATION NUMBER)
101 COLUMBIA ROAD
P.O. BOX 4000
MORRISTOWN, NEW JERSEY 07962-2497
(973) 455-2000
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, OF REGISTRANT'S PRINCIPAL
EXECUTIVE OFFICES)
-------------------
VICTOR P. PATRICK, ESQ.
VICE PRESIDENT, SECRETARY, AND DEPUTY GENERAL COUNSEL
HONEYWELL INTERNATIONAL INC.
101 COLUMBIA ROAD
MORRIS TOWNSHIP, NEW JERSEY 07962-2497
(973) 455-2000
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER OF AGENT FOR SERVICE)
-------------------
WITH A COPY TO:
ROBERT M. CHILSTROM, ESQ.
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
4 TIMES SQUARE
NEW YORK, NEW YORK 10036-6522
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APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time to
time after the effective date of this registration statement.
If the only securities being registered on this form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [ ]
If any of the securities being registered on this form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. [x]
If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act Registration Statement number of the earlier
effective Registration Statement for the same offering. [ ]
If this form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
Registration Statement number of the earlier effective Registration Statement
for the same offering. [ ]
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If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [x]
CALCULATION OF REGISTRATION FEE
=========================================================================================================================
PROPOSED MAXIMUM
PROPOSED MAXIMUM AGGREGATE AMOUNT OF
TITLE OF CLASS OF SECURITIES AMOUNT TO BE OFFERING PRICE OFFERING REGISTRATION
TO BE REGISTERED REGISTERED(1)(2) PER UNIT(2) PRICE(3) FEE(4)
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Debt Securities
Preferred Stock
Common Stock.................................... $2,750,000,000 100% $2,750,000,000 $253,000
=========================================================================================================================
(1) Such indeterminate number or amount of debt securities, preferred stock or
common stock of Honeywell International Inc. as may from time to time be
issued at indeterminate prices.
(2) Such amount in U.S. dollars or the equivalent thereof in foreign currencies,
foreign currency units or composite currencies as shall result in an
aggregate initial offering price for all securities of $2,750,000,000. If
any debt securities are issued as original issue discount, such greater
amount as may result in the initial offering price for securities
aggregating $2,750,000,000.
(3) Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(o) under the Securities Act of 1933, as amended
('Securities Act').
(4) The filing fee of $253,000 relates solely to the registration of
$2,750,000,000 indeterminate number or amount of debt securities,
preferred stock or common stock of Honeywell International Inc. not
previously registered. Pursuant to Rule 429 under the Securities Act,
this registration statement contains a combined prospectus that also
relates to $250,000,000 indeterminate number or amount of debt securities,
preferred stock or common stock of Honeywell International Inc. previously
registered pursuant to its registration statement on Form S-3 (File
No. 333-45466). The filing fee associated with such securities ($66,000)
was previously paid with that registration statement. This registration
statement constitutes Post-Effective Amendment No. 1 to registration
statement on Form S-3 (File No. 333-45466) pursuant to which the total
amount of unsold debt securities, preferred stock or common stock
previously registered under registration statement on Form S-3 (File
No. 333-45466) may be offered and sold, together with the securities
registered hereunder, through the use of the combined prospectus
included in this registration statement.
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THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT SPECIFICALLY STATING THAT THIS REGISTRATION STATEMENT
SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF THE
SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a),
MAY DETERMINE.
================================================================================
THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE MAY
NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER
TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO BUY THESE
SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
SUBJECT TO COMPLETION, DATED APRIL 24, 2002.
PROSPECTUS
$3,000,000,000
[HONEYWELL LOGO]
HONEYWELL INTERNATIONAL INC.
101 COLUMBIA ROAD
MORRIS TOWNSHIP, NEW JERSEY 07962
(973) 455-2000
DEBT SECURITIES
PREFERRED STOCK
COMMON STOCK
-------------------
We will provide specific terms of these securities in supplements to this
prospectus. You should read this prospectus and the applicable supplement
carefully before you invest.
-------------------
Neither the Securities and Exchange Commission nor any other regulatory body
has approved or disapproved of these securities or passed upon the accuracy or
adequacy of this prospectus. Any representation to the contrary is a criminal
offense.
-------------------
This prospectus may not be used to consummate sales of securities unless
accompanied by a prospectus supplement.
See 'Risk Factors' beginning on page 3 to read about the risks you should
consider before buying any of our debt securities, preferred stock or common
stock.
Prospectus dated .
TABLE OF CONTENTS
About This Prospectus....................................... 3
Risk Factors................................................ 3
Honeywell................................................... 4
Ratio of Earnings to Fixed Charges.......................... 4
Use of Proceeds............................................. 4
Description of Debt Securities.............................. 5
Description of Preferred Stock.............................. 10
Description of Common Stock................................. 13
Book-Entry Issuance......................................... 14
Plan of Distribution........................................ 15
Experts..................................................... 16
Legal Opinions.............................................. 16
Where You Can Find More Information About Honeywell......... 17
Cautionary Statement Concerning Forward-Looking
Statements................................................ 17
All references to 'we,' 'us,' 'our' and 'Honeywell' in this prospectus refer
to Honeywell International Inc. and its consolidated subsidiaries, unless the
context otherwise requires.
2
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement (No. 333- ) that
Honeywell filed with the SEC utilizing a 'shelf' registration process. Under
this shelf process, we may offer from time to time up to $3,000,000,000 (or the
equivalent in foreign or composite currencies) of our debt securities, preferred
stock or common stock. This prospectus provides you with a general description
of the securities we may offer. Each time we offer securities, we will provide
you with a prospectus supplement that will describe the specific amounts, prices
and terms of the securities being offered. The prospectus supplement may also
add, update or change information contained in this prospectus.
To understand the terms of our securities, you should carefully read this
document with the related prospectus supplement. Together they give the specific
terms of the securities we are offering. You should also read the documents we
have referred you to in 'Where You Can Find More Information About Honeywell'
below for information on our company and our financial statements.
RISK FACTORS
ABOUT 40% OF OUR SALES ARE TO AEROSPACE CUSTOMERS. A DOWNTURN IN THE
AEROSPACE INDUSTRY COULD NEGATIVELY AFFECT OUR SALES AND RESULTS OF OPERATIONS.
We continually monitor the creditworthiness of our customers to which we
grant credit terms in the normal course of business. While concentrations of
credit risk associated with our trade accounts and notes receivable are
considered minimal due to our diverse customer base on a corporate-wide level,
approximately 40% of our sales are in the aerospace industry, and approximately
19% of our sales are to commercial aviation customers (aircraft manufacturers
and airlines). A downturn in the aviation industry, such as that which occurred
after the terrorist attacks on September 11, 2001, could negatively affect our
sales and results of operations.
ABOUT 40% OF OUR SALES ARE OUTSIDE THE UNITED STATES. CONDUCTING BUSINESS
ABROAD SUBJECTS US TO ACTIONS OF FOREIGN GOVERNMENTS. WHEN THE U.S. DOLLAR
STRENGTHENS IN RELATION TO THE FOREIGN CURRENCIES OF THE COUNTRIES WHERE WE SELL
OUR PRODUCTS, OUR DOLLAR-DENOMINATED SALES AND REPORTED INCOME DECREASE.
Approximately 40% of our sales in fiscal year 2001 were derived from sales
in non-U.S. markets. We expect sales from non-U.S. markets to continue to
represent a significant portion of our total sales. Our non-U.S. operations are
subject to risks inherent in conducting business abroad, including:
price and currency exchange controls;
fluctuations in the relative values of currencies;
restrictive governmental actions; and
difficulties in managing a global enterprise.
Changes in the relative values of currencies occur from time to time and may, in
some instances, have a significant effect on our results of operations. Our
financial statements reflect recalculations of items denominated in non-U.S.
currencies to U.S. dollars, our functional currency. While we monitor our
exchange rate exposure and attempt to reduce this exposure by hedging through
forward contracts, we cannot assure that these risks will not adversely affect
our liquidity and results of operations in the future.
OUR OPERATIONS DEPEND ON PRODUCTION FACILITIES THROUGHOUT THE WORLD. THOSE
PRODUCTION FACILITIES ARE SUBJECT TO PHYSICAL AND OTHER RISKS THAT COULD DISRUPT
PRODUCTION.
Our production facilities could be damaged or disrupted by a natural
disaster, labor strike, war, political unrest or terrorist activity. Although we
have obtained property damage and business
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interruption insurance, a major catastrophe such as an earthquake or other
natural disaster at any of our sites, or significant labor strikes, work
stoppages, political unrest, war, or terrorist activities in any of the areas
where we conduct operations, could result in a prolonged interruption of
business. Any disruption resulting from these events could cause significant
delays in shipments of products and the loss of sales and customers. It cannot
be assured that insurance proceeds would adequately compensate us for any of
these events.
WE ENGAGE IN A SIGNIFICANT NUMBER OF ACQUISITIONS. THESE TRANSACTIONS
REQUIRE SIGNIFICANT RESOURCES, AND THE BUSINESSES AND TECHNOLOGIES WE ACQUIRE
MAY NOT YIELD THE RESULTS WE ANTICIPATE.
We are a company that, from time to time, achieves significant growth
through the acquisition of other companies, businesses and/or technologies. In
the past several years, we have made various acquisitions and entered into joint
venture arrangements intended to complement or expand our business, and are
likely to continue to do so in the future. The success of these transactions
will depend on our ability to integrate assets and personnel from these
transactions and to cooperate with our joint venture partners. We may encounter
difficulties in integrating acquired assets with our operations, and in managing
joint ventures. Furthermore, we may not realize the benefits we anticipate when
we first enter into a transaction. Lastly, the negotiation of potential
acquisitions or joint ventures, as well as the integration of an acquired
business, product or technology, could require us to incur significant costs,
and could cause diversion of management's time and resources. Any of the
foregoing could adversely effect on our business and results of operations.
WE ARE SUBJECT TO LITIGATION THAT COULD RESULT IN SIGNIFICANT EXPENDITURES.
We are subject to a number of lawsuits arising out of the conduct of our
business, relating to environmental, commercial, shareowner, asbestos and other
matters, some of which involve substantial amounts. We cannot assure that
litigation on any such matter would not result in significant expenditures.
HONEYWELL
Honeywell is a diversified technology and manufacturing company, serving
customers worldwide with aerospace products and services, control technologies
for buildings, homes and industry, automotive products, specialty chemicals,
fibers, plastics and electronic and advanced materials. Honeywell was
incorporated in Delaware in 1985.
RATIO OF EARNINGS TO FIXED CHARGES
Our historical ratios of earnings to fixed charges are as set forth on
Exhibit 12 to the Registration Statement of which this prospectus forms a part
and the most recent Annual Report on Form 10-K filed with the Securities and
Exchange Commission,and will be set forth in a related prospectus supplement.
USE OF PROCEEDS
Unless otherwise specified in the applicable prospectus supplement, the net
proceeds we receive from the sale of the securities offered by this prospectus
and the accompanying prospectus supplement will be used for general corporate
purposes. General corporate purposes may include the repayment of outstanding
debt, repurchase of our common stock, investments in or extensions of credit to
our subsidiaries, or the financing of possible acquisitions or business
expansion. The net proceeds may be invested temporarily or applied to repay
short-term debt until they are used for their stated purpose.
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DESCRIPTION OF DEBT SECURITIES
The following description of the terms of the debt securities sets forth
some of the general terms that may apply to debt securities offered under this
prospectus. The particular terms of any debt securities will be described in the
related prospectus supplement.
GENERAL
Debt securities will be our unsecured, unsubordinated debt obligations. They
will be issued under an indenture dated as of October 1, 1985, as amended by a
first supplemental indenture dated as of February 1, 1991 and a second
supplemental indenture dated as of November 1, 1997, between us and JPMorgan
Chase Bank, as trustee.
The following summary of the provisions of the indenture is not complete.
You should refer to the indenture (including the amendments to it) which are
exhibits to our registration statement No. 333- . The indenture has been
qualified under the Trust Indenture Act. Section references below are to the
section in the indenture. The referenced sections of the indenture and the
definitions of capitalized terms in the indenture are incorporated by reference
in this prospectus.
The indenture does not limit the amount of debt that we may issue. The
indenture provides that debt securities may be issued thereunder up to the
principal amount authorized by us from time to time. We have issued
$4,359,760,000 principal amount of debt securities under our existing indenture
with JPMorgan Chase Bank as of the date of this prospectus.
The debt securities may be issued in one or more separate series. The
prospectus supplement relating to the particular series of debt securities being
offered will specify the particular amounts, prices and terms of those debt
securities. These terms may include:
the title and type of the debt securities;
any limit on the aggregate principal amount or aggregate initial offering
price of the debt securities and the amount payable upon acceleration;
the purchase price of the debt securities;
the dates on which the principal of the debt securities will be payable;
the interest rates, including any interest rates applicable to overdue
payments, of the debt securities, or the method for determining those
rates, and the interest payment dates for the debt securities;
the places where payments may be made on the debt securities;
any mandatory or optional redemption provisions applicable to the debt
securities;
any sinking fund or analogous provisions applicable to the debt securities;
the authorized denominations of the debt securities, if other than $1,000
and integral multiples of $1,000;
if other than U.S. dollars, the currency, currencies or composite
currencies, in which the purchase price or payments on the debt securities
will be payable. The currencies may be different for principal, premium and
interest payments;
any conversion or exchange provisions applicable to the debt securities;
any additional events of default applicable to the debt securities not set
forth in the indenture;
any securities exchange on which the debt securities may be listed; and
any other specific terms of the debt securities.
Some of the debt securities may be issued as original issue discount debt
securities. Original issue discount debt securities bear no interest or bear
interest at below-market rates and will be sold at a discount below their stated
principal amount. The prospectus supplement will also contain any special tax,
accounting or other information relating to original issue discount debt
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securities or relating to other kinds of debt securities that may be offered,
including debt securities linked to an index or payable in currencies other than
U.S. dollars.
The debt securities will be issued only in fully registered form without
coupons. The indenture also provides that debt securities of a series may be
issued as permanent global debt securities. See ' -- Permanent Global Debt
Securities' and ' -- Book-Entry Issuance' below. No service charge will be made
for any transfer or exchange of debt securities, but we may require payment of
any taxes or other governmental charges.
Principal of and any premium and interest on the debt securities will be
payable at the corporate trust office of the trustee in New York City. Transfers
or exchanges of debt securities may be made at the same location. Payment of
interest on any debt securities may be made at our option by check mailed to the
registered holders of the debt securities at their registered addresses. In
connection with any payment on a debt security, we may require the holder to
certify information to us. In the absence of such certification, we may rely on
any legal presumption to determine whether we must deduct or withhold taxes,
assessments or governmental charges from a payment.
We may at any time repurchase debt securities at any price on the open
market or otherwise. We may in our discretion hold, resell or surrender to the
trustee for cancellation any debt securities that we acquire.
COVENANTS
The indenture does not limit our ability to enter into highly leveraged
transactions, nor does it provide special protection to holders of debt
securities in the event of those transactions. The indenture does not provide
special protection in the event of a sudden and dramatic decline in our credit
quality, including a decline resulting from a takeover, recapitalization or
similar restructuring. In addition, the indenture does not limit the amount of
indebtedness incurred by our subsidiaries. The covenants contained in the
indenture are described below.
Limitation on Liens. In the indenture, we covenant not to issue, assume or
guarantee any indebtedness for borrowed money secured by liens on
any property located in the United States which is
-- in the opinion of our board of directors, a principal manufacturing
property, or
-- an oil, gas or mineral producing property, or
any shares of capital stock or indebtedness of any subsidiary owning such
property,
without equally and ratably securing the debt securities, subject to exceptions
specified in the indenture. These exceptions include:
existing liens on our property or liens on property of corporations at the
time those corporations become our subsidiaries or are merged with us;
liens existing on property when acquired, or incurred to finance the
purchase price of that property;
certain liens on property to secure the cost of exploration, drilling or
development of, or improvements on, that property;
certain liens in favor of or required by contracts with governmental
entities; and
indebtedness secured by liens otherwise prohibited by the covenant not
exceeding 10% of the consolidated net tangible assets of Honeywell and our
consolidated subsidiaries (Sections 101 and 1005).
Transfers of oil, gas or other minerals in place for a period of time until the
transferee receives a specified amount of money or of such minerals or any other
transfers commonly referred to as 'production payments,' are outside the scope
of this covenant and are permitted without restriction.
6
Limitation on Sale and Lease-Back Transactions. We also covenant not to
enter into any sale and lease-back transaction covering any property located in
the United States which is
in the opinion of our board of directors, a principal manufacturing
property, or
an oil, gas or mineral producing property,
unless:
we would be entitled under the provisions described under ' -- Limitation
on Liens' to incur debt equal to the value of such sale and lease-back
transaction, secured by liens on the property to be leased, without equally
securing the outstanding debt securities; or
we, during the four months following the effective date of such sale and
lease-back transaction, apply an amount equal to the value of such sale and
lease-back transaction to the voluntary retirement of long-term
indebtedness of Honeywell or our subsidiaries (Sections 101 and 1006).
CONSOLIDATION, MERGER AND SALE OF ASSETS
We may, without the consent of the holders of any debt securities,
consolidate or merge with any other person or transfer or lease all or
substantially all of our assets to another person or permit another corporation
to merge into Honeywell, provided that:
the successor is a person organized under U.S. law;
the successor person, if not Honeywell, assumes our obligations on the debt
securities and under the indenture;
after giving effect to the transaction, no event of default, and no event
which, after notice or lapse of time or both, would become an event of
default, shall have occurred and be continuing; and
certain other conditions are met (Section 801A).
DEFEASANCE PROVISIONS
The indenture contains a provision that, if made applicable to any series of
debt securities, permits us to elect:
(1) to defease and be discharged from all of our obligations (except for
certain obligations to register the transfer or exchange of debt
securities, to replace stolen, lost or mutilated debt securities, to
maintain paying agencies and to hold moneys for payment in trust) with
respect to any series of debt securities denominated and payable in U.S.
dollars then outstanding ('defeasance'); and/or
(2) to be released from our obligations under the covenants set forth in
Sections 1005 (limitation on liens) and 1006 (limitation on sale and
lease-back transactions) and from the consequences of an event of
default resulting from a breach of those covenants ('covenant
defeasance') (Sections 403 and 1008).
To elect defeasance or covenant defeasance, we must deposit in trust with
the trustee money and/or U.S. government obligations (which are direct
obligations of the United States backed by its full faith and credit) which
through the payment of principal and interest in accordance with their terms
will provide sufficient money, without reinvestment, to repay in full those debt
securities, including any sinking fund obligations (Section 101). As a condition
to defeasance or covenant defeasance, we must deliver to the trustee an opinion
of counsel that the holders of the debt securities will not recognize income,
gain or loss for Federal income tax purposes as a result of the defeasance or
covenant defeasance. In the case of defeasance under clause (1) above, that
opinion must refer to and be based upon a ruling received by us from the
Internal Revenue Service or published as a revenue ruling or upon a change in
applicable Federal income tax law, and such defeasance may not result in any
series of debt securities, if it is listed for trading on the New York Stock
Exchange, being delisted.
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Under Federal income tax law as of the date of this prospectus, defeasance
would likely be treated as a taxable exchange of debt securities for interests
in the defeasance trust. As a result, a holder would recognize gain or loss
equal to the difference between the holder's cost or other tax basis for the
debt securities and the value of the holder's proportionate interest in the
defeasance trust. That holder would thereafter be required to include in income
a proportionate share of the income, gain or loss, as the case may be, of the
defeasance trust. Under Federal income tax law as of the date of this
prospectus, covenant defeasance would ordinarily not be treated as a taxable
exchange of debt securities. Purchasers of debt securities should consult their
own advisors as to the tax consequences to them of defeasance and covenant
defeasance, including the applicability and effect of tax laws other than the
Federal income tax law.
If we exercise our covenant defeasance option with respect to a particular
series of debt securities, then even if there were a default under the related
covenant, payment of those debt securities could not be accelerated. We may
exercise our defeasance option with respect to a particular series of debt
securities even if we previously had exercised our covenant defeasance option.
If we exercise our defeasance option, payment of those debt securities may not
be accelerated because of any event of default. If we exercise our defeasance
option or covenant defeasance option and an acceleration were to occur, the
realizable value at the acceleration date of the money and U.S. government
obligations in the defeasance trust could be less than the principal and
interest then due on those debt securities. This is because the required deposit
of money and/or U.S. government obligations in the defeasance trust is based
upon scheduled cash flows rather than market value, which will vary depending
upon interest rates and other factors.
MODIFICATION
We and the trustee may make modifications and amendments to the indenture
with the consent of the holders of not less than a majority in principal amount
of each series of outstanding debt securities affected by the modification or
amendment. Without the consent of each affected holder, no modification may:
change the stated maturity of any debt securities;
reduce the principal amount of any debt securities;
reduce the rate or extend the time of payment of interest or any premium of
any debt securities;
impair the right to institute suit for the enforcement of any payment on or
after its due date; or
reduce the percentage of the principal amount of debt securities required
to approve any supplemental indenture or any waiver under the indenture
(Section 902).
We and the trustee may amend the indenture without the consent of the
holders of debt securities:
to reflect our merger with another person;
to replace the trustee;
to issue a new series of debt securities;
to effect modifications that do not adversely affect any outstanding series
of debt securities;
to add additional covenants (Section 901); and
to convey any property to the trustee.
Any modification of the indenture subordinating any series of debt
securities issued under it to any other indebtedness of Honeywell will not be
effective without each holder's consent.
EVENTS OF DEFAULT; WAIVER
An event of default with respect to any series of debt securities will occur
under the indenture if:
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we fail to pay principal of or any premium on the series, except for
principal due upon sinking fund redemptions;
we fail to pay any installment of interest on the series for a period of 30
days;
we fail to pay any sinking fund redemption on the series for a period of 30
days;
we fail to perform any other covenant in the indenture for 90 days after
notice;
we or a court take certain actions relating to the bankruptcy, insolvency
or reorganization of Honeywell for the benefit of our creditors; or
any other event of default specified with respect to debt securities of
that series as described in the applicable prospectus supplement occurs
(Section 501).
No event of default with respect to a particular series of debt securities
issued under the indenture necessarily constitutes an event of default with
respect to any other series of debt securities (Section 501).
On the occurrence of an event of default with respect to a series of debt
securities, the trustee or the holders of at least 25% in principal amount at
maturity of that series of debt securities then outstanding may declare the
principal, or in the case of debt securities sold at an original issue discount,
the amount specified in the terms of the debt securities, to be due and payable
immediately (Section 501).
Subject to conditions, the declaration described in the preceding paragraph
may be annulled and past defaults, except uncured payment defaults and other
specified defaults, may be waived by the holders of not less than a majority in
aggregate principal amount at maturity of outstanding debt securities of the
series affected by any event of default (Sections 501, 502 and 507).
Upon payment of the principal amount in respect of an event of default on
any series of debt securities, together with any premium or interest due
thereon, all of our obligations in respect to payment of indebtedness on such
debt securities will terminate (Section 401).
The indenture requires the trustee to, within 90 days after the occurrence
of a default with respect to any outstanding series of debt securities, give the
holders of that series notice of the default if uncured. The trustee may
withhold this notice of default, except for default in the payment of principal
of or any premium or interest on, or of any sinking fund payment with respect
to, such series of debt securities, if it considers such withholding to be in
the interest of holders of debt securities (Section 508).
We are required annually to file with the trustee a certificate stating that
no default exists under the indenture, or specifying the nature and status of
any default (Section 1004).
Subject to provisions relating to its duties in case of default, the trustee
is under no obligation to exercise any of its rights or powers under the
indenture at the request, order or direction of any holders of debt securities
unless those holders of debt securities shall have offered to the trustee
reasonable security or indemnity (Section 603). Subject to that provision for
security or indemnification, the holders of a majority in principal amount of
the debt securities of any series then outstanding will have the right to direct
the time, method and place of conducting any proceeding for any remedy available
to, or exercising any trust or power conferred on, the trustee with respect to
the debt securities of that series (Section 504).
INFORMATION CONCERNING THE TRUSTEE UNDER THE INDENTURE
We and some of our subsidiaries and affiliates maintain deposits with, and
conduct other banking transactions with, JPMorgan Chase Bank in the ordinary
course of business. These include:
JPMorgan Chase Bank is the trustee under the indenture under which our
Serial Zero Coupon Bonds Due through 2009 are outstanding and under the
indenture under which indebtedness of Honeywell Inc., our wholly owned
subsidiary, is outstanding.
JPMorgan Chase Bank is fiscal agent for our 8% Bonds Due May 15, 2006.
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JPMorgan Chase Bank is a lender under our revolving credit agreements with
other banks.
PERMANENT GLOBAL DEBT SECURITIES
The debt securities of a series may be issued in whole or in part in the
form of one or more global securities that will be deposited with a depositary
or its nominee identified in the related prospectus supplement (Section 203).
For most debt securities, the depositary will be DTC. A global security may not
be transferred except as a whole to the depositary, a nominee of the depositary
or their successors unless it is exchanged in whole or in part for debt
securities in individually certificated form. For a description of the
depositary arrangements, see 'Book-Entry Issuance'. Any additional terms of the
depositary arrangement with respect to any series of debt securities and the
rights of and limitations on owners of beneficial interests in a global security
representing a series of debt securities may be described in the related
prospectus supplement.
DESCRIPTION OF PREFERRED STOCK
GENERAL
Honeywell's restated certificate of incorporation, or charter, authorizes
the board of directors or a committee of the board of directors to cause
preferred stock to be issued in one or more series, without stockholder action.
They are authorized to issue up to 40,000,000 shares of preferred stock, without
par value, and can determine the number of shares of each series, and the
rights, preferences and limitations of each series. We may amend the charter to
increase the number of authorized shares of preferred stock in a manner
permitted by the charter and Delaware law. As of the date of this prospectus,
there is no preferred stock outstanding.
The particular terms of any series of preferred stock offered by us will be
described in the prospectus supplement relating to that series of preferred
stock. Those terms relating to the series of preferred stock offered may
include:
the number of shares of the preferred stock being offered;
the title and liquidation preference per share of the preferred stock;
the purchase price of the preferred stock;
the dividend rate or method for determining the dividend rate;
the dates on which dividends will be paid;
whether dividends on the preferred stock will be cumulative or
noncumulative and, if cumulative, the dates from which dividends shall
commence to accumulate;
any redemption or sinking fund provisions applicable to the preferred
stock;
any securities exchange on which the preferred stock may be listed; and
any additional dividend, liquidation, redemption, sinking fund and other
rights and restrictions applicable to the preferred stock.
The following summary is not complete. You should refer to the certificate
of designations relating to any series of preferred stock for the complete terms
of that preferred stock. The certificate of designations will be filed with the
Securities and Exchange Commission at the time of the offering of the preferred
stock.
Each share of preferred stock will, when issued, be fully paid and
nonassessable. Unless otherwise specified in the prospectus supplement, if we
liquidate, dissolve or wind-up our business, each series of preferred stock will
have the same rank as to dividends and distributions as each other series of
preferred stock we may issue in the future. Preferred stock will have no
preemptive rights.
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DIVIDEND RIGHTS
Holders of preferred stock will be entitled to receive, when, as and if
declared by the board of directors, cash dividends at the rates and on the dates
set forth in the related prospectus supplement. Dividend rates may be fixed or
variable or both. Different series of preferred stock may be entitled to
dividends at different dividend rates or based upon different methods of
determination. Each dividend will be payable to the holders of record as they
appear on our stock books on record dates determined by the board of directors.
Dividends on preferred stock may be cumulative or noncumulative, as specified in
the related prospectus supplement. If the board of directors fails to declare a
dividend on any preferred stock for which dividends are noncumulative, then the
right to receive that dividend will be lost, and we will have no obligation to
pay the dividend for that dividend period, whether or not dividends are declared
for any future dividend period.
No full dividends will be declared or paid on any preferred stock unless
full dividends for the dividend period commencing after the immediately
preceding dividend payment date and any cumulative dividends still owing have
been or contemporaneously are declared and paid on all other series of preferred
stock which have the same rank as, or rank senior to, that series of preferred
stock. When those dividends are not paid in full, dividends will be declared pro
rata, so that the amount of dividends declared per share on that series of
preferred stock and on each other series of preferred stock having the same rank
as that series of preferred stock will bear the same ratio to each other that
accrued dividends per share on that series of preferred stock and the other
series of preferred stock bear to each other. In addition, generally, unless
full dividends including any cumulative dividends still owing on all outstanding
shares of any series of preferred stock have been paid, no dividends will be
declared or paid on the common stock and generally we may not redeem or purchase
any common stock. No interest will be paid in connection with any dividend
payment or payments which may be in arrears.
Unless otherwise set forth in the related prospectus supplement, the
dividends payable for each dividend period will be computed by annualizing the
applicable dividend rate and dividing by the number of dividend periods in a
year, except that the amount of dividends payable for the initial dividend
period or any period shorter than a full dividend period will be computed on the
basis of a 360-day year consisting of twelve 30-day months and, for any period
less than a full month, the actual number of days elapsed in the period.
RIGHTS UPON LIQUIDATION
If we liquidate, dissolve or wind-up our affairs, either voluntarily or
involuntarily, the holders of each series of preferred stock will be entitled to
receive liquidating distributions in the amount set forth in the prospectus
supplement relating to the series of preferred stock, plus an amount equal to
any accrued and unpaid dividends before any distribution of assets is made to
the holders of common stock. If the amounts payable with respect to preferred
stock of any series and any stock having the same rank as that series of
preferred stock are not paid in full, the holders of the preferred stock will
share ratably in any such distribution of assets in proportion to the full
respective preferential amounts to which they are entitled. After the holders of
each series of preferred stock having the same rank are paid in full, they will
have no right or claim to any of our remaining assets. Neither the sale of all
or substantially all of our property or business nor a merger or consolidation
by us with any other corporation will be considered a dissolution, liquidation
or winding up by us of our business or affairs.
REDEMPTION
Any series of preferred stock may be redeemable in whole or in part at our
option. In addition, any series of preferred stock may be subject to mandatory
redemption pursuant to a sinking fund. The redemption provisions that may apply
to a series of preferred stock, including the redemption dates and the
redemption prices for that series, will be set forth in the related prospectus
supplement.
11
If a series of preferred stock is subject to mandatory redemption, the
related prospectus supplement will specify the year we can begin to redeem
shares of the preferred stock, the number of shares of the preferred stock we
can redeem each year, and the redemption price per share. We may pay the
redemption price in cash, stock or other securities of Honeywell or of third
parties, as specified in the related prospectus supplement. If the redemption
price is to be paid only from the proceeds of the sale of our capital stock, the
terms of the series of preferred stock may also provide that if no capital stock
is sold or if the amount of cash received is insufficient to pay in full the
redemption price then due, the series of preferred stock will automatically be
converted into shares of the applicable capital stock pursuant to conversion
provisions specified in the related prospectus supplement.
If fewer than all the outstanding shares of any series of preferred stock
are to be redeemed, whether by mandatory or optional redemption, the board of
directors will determine the method for selecting the shares to be redeemed,
which may be by lot or pro rata by any other method determined to be equitable.
From and after the redemption date, dividends will cease to accrue on the shares
of preferred stock called for redemption and all rights of the holders of those
shares other than the right to receive the redemption price will cease.
CONVERSION RIGHTS
The related prospectus supplement will state any conversion rights under
which shares of preferred stock are convertible into shares of common stock or
another series of preferred stock or other property. As described under
' -- Redemption' above, under some circumstances preferred stock may be
mandatorily converted into common stock or another series of preferred stock.
VOTING RIGHTS
For most series of preferred stock, the holders of preferred stock will not
be entitled to vote. Except as indicated in the related prospectus supplement,
if we issue full shares of any series of preferred stock, each share will be
entitled to one vote on matters on which holders of that series of preferred
stock are entitled to vote. Because each full share of any series of preferred
stock will be entitled to one vote, the voting power of that series will depend
on the number of shares in that series, and not on the aggregate liquidation
preference or initial offering price of the shares of that series of preferred
stock.
TRANSFER AGENT AND REGISTRAR
We will appoint a transfer agent, registrar and dividend disbursement agent
for the preferred stock. The registrar for the preferred stock will send notices
to the holders of the preferred stock of any meeting at which those holders will
have the right to elect directors or to vote on any other matter.
PERMANENT GLOBAL PREFERRED SECURITIES
A series of preferred stock may be issued in whole or in part in the form of
one or more global securities that will be deposited with a depositary or its
nominee identified in the related prospectus supplement. For most series of
preferred stock, the depositary will be DTC. A global security may not be
transferred except as a whole to the depositary, a nominee of the depositary or
their successors unless it is exchanged in whole or in part for preferred stock
in individually certificated form. For a description of the depositary
arrangements, see 'Book-Entry Issuance'. Any additional terms of the depositary
arrangement with respect to any series of preferred stock and the rights of and
limitations on owners of beneficial interests in a global security representing
a series of preferred stock may be described in the related prospectus
supplement.
12
DESCRIPTION OF COMMON STOCK
GENERAL
As of the date of this prospectus, we are authorized to issue up to
2,000,000,000 shares of common stock. As of December 31, 2001, we had
approximately 957.6 million shares of common stock issued (including
approximately 142.6 million shares held in treasury) and had reserved
approximately 87.3 million shares of common stock for issuance under various
employee or director incentive compensation and option plans.
The Bank of New York is the transfer agent and registrar for our common
stock. Shares of common stock are listed on the New York, Chicago and Pacific
stock exchanges, under the symbol 'HON'. In addition, shares of common stock are
listed on the London stock exchange.
The following summary is not complete. You should refer to the applicable
provision of Honeywell's charter and by-laws and to Delaware corporate law for a
complete statement of the terms and rights of our common stock.
DIVIDENDS
Holders of common stock are entitled to receive dividends when, as and if
declared by the board of directors, out of funds legally available for their
payment, subject to the rights of holders of any preferred stock outstanding.
VOTING RIGHTS
Each holder of common stock is entitled to one vote per share. Subject to
any rights of the holders of any series of preferred stock pursuant to
applicable law or the provision of the certificate of designations creating that
series, all voting rights are vested in the holders of shares of common stock.
Holders of shares of common stock have noncumulative voting rights, which means
that the holders of more than 50% of the shares voting for the election of
directors can elect 100% of the directors, and the holders of the remaining
shares voting for the election of directors will not be able to elect any
directors.
RIGHTS UPON LIQUIDATION
In the event of Honeywell's voluntary or involuntary liquidation,
dissolution or winding up, the holders of common stock will be entitled to share
equally in any of our assets available for distribution after the payment in
full of all debts and distributions and after the holders of any series of
outstanding preferred stock have received their liquidation preferences in full.
OTHER RIGHTS
The issued and outstanding shares of common stock are fully paid and
nonassessable. Holders of shares of common stock are not entitled to preemptive
rights. Shares of common stock are not convertible into shares of any other
class of capital stock. If we merge or consolidate with or into another company
and as a result our common stock is converted into or exchangeable for shares of
stock, other securities or property (including cash), all holders of common
stock will be entitled to receive the same kind and amount of consideration per
share of common stock.
POSSIBLE ANTI-TAKEOVER PROVISIONS
Honeywell's charter and by-laws provide:
for a classified board of directors that is divided into three classes as
nearly equal in number as is possible, with the term of one class expiring
at the annual meeting in each year;
that the board of directors may establish the number of seats on the board,
subject to the right of preferred stockholders to elect directors in
certain circumstances and shareowners' rights to set the number of seats
upon the vote of holders of 80% of the outstanding shares of common stock;
13
that vacancies on the board of directors other than at the annual meeting
are filled by a vote of the remaining directors;
that special meetings of shareowners generally may be called only by the
chief executive officer or by a majority of the authorized number of
directors;
that action may be taken by shareowners only at annual or special meetings
and not by written consent;
that advance notice must be given to Honeywell for a shareowner to nominate
directors for election at a shareowner meeting;
that the following actions require approval by holders of 80% of the
outstanding shares entitled to vote:
the removal for cause of directors at other than the expiration of
their terms; and
the amendment or repeal of Honeywell's charter and/or by-law provisions
relating to the classified board of directors, the number of seats on
the board of directors, the filling of board vacancies, removal of
directors for cause, calling of special meetings of shareowners,
prohibition of shareowner action by written consent and amendment or
repeal of provisions requiring an 80% vote of shareowners.
Any of these provisions could delay, deter or prevent a tender offer for or
attempted takeover of Honeywell.
Our charter permits us to issue up to 40,000,000 shares of preferred stock
with terms which may be set by our board of directors or a committee of the
board. That preferred stock could have terms that could delay, deter or prevent
a tender offer or takeover attempt of Honeywell.
Under Delaware law, an acquirer of 15% or more of our shares of stock must
wait three years before a business combination with us unless one of the
following exceptions is available:
approval by our board of directors prior to the time the acquirer became a
15% shareowner of Honeywell;
acquisition of at least 85% of our voting stock in the transaction in which
the acquirer became a 15% shareowner of Honeywell; or
approval of the business combination by our board of directors and
two-thirds of our disinterested shareowners.
BOOK-ENTRY ISSUANCE
Most series of debt securities and preferred stock will be book-entry
securities. Upon issuance, all book-entry securities of the same issue will be
represented by one or more fully registered global securities. Each global
security will be deposited with, or on behalf of, The Depository Trust Company
or 'DTC', a securities depository, and will be registered in the name of DTC or
a nominee of DTC. DTC will thus be the only registered holder of these
securities and will be considered the sole owner of the securities.
Purchasers may only hold interests in the global securities through DTC if
they are a participant in the DTC system. Purchasers may also hold interests
through a securities intermediary -- a bank, brokerage house or other
institution that maintains securities accounts for customers -- that has an
account with DTC or its nominee. DTC will maintain accounts showing the
securities holdings of its participants, and these participants will in turn
maintain accounts showing the securities holdings of their customers. Some of
these customers may themselves be securities intermediaries holding securities
for their customers. Thus, each beneficial owner of a book-entry security will
hold that security indirectly through a hierarchy of intermediaries, with DTC at
the 'top' and the beneficial owner's own securities intermediary at the
'bottom.'
The securities of each beneficial owner of a book-entry security will be
evidenced solely by entries on the books of the beneficial owner's securities
intermediary. The actual purchaser of the securities will generally not be
entitled to have the securities represented by the global securities
14
registered in its name and will not be considered the owner. In most cases, a
beneficial owner will also not be able to obtain a paper certificate evidencing
the holder's ownership of securities. The book-entry system for holding
securities eliminates the need for physical movement of certificates. The laws
of some jurisdictions require some purchasers of securities to take physical
delivery of their securities in definitive form. These laws may impair the
ability to transfer book-entry securities.
Unless otherwise specified in the prospectus supplement with respect to a
series of debt securities or preferred stock, a beneficial owner of book-entry
securities represented by a global security may exchange the securities for
definitive or paper securities only if:
DTC is unwilling or unable to continue as depositary for such global
security and Honeywell is unable to find a qualified replacement for DTC
within 90 days;
at any time DTC ceases to be a 'clearing agency' registered under the
Securities Exchange Act of 1934; or
Honeywell in its sole discretion decides to allow some or all book-entry
securities to be exchangeable for definitive securities in registered form.
Any global security that is exchangeable will be exchangeable in whole for
definitive securities in registered form with the same terms, and in the case of
debt securities, in an equal aggregate principal amount in denominations of
$1,000 and whole multiples of $1,000. Definitive securities will be registered
in the name or names of the person or persons specified by DTC in a written
instruction to the registrar of the securities. DTC may base its written
instruction upon directions it receives from its participants.
In this prospectus and the accompanying prospectus supplement, for
book-entry securities, references to actions taken by security holders will mean
actions taken by DTC upon instructions from its participants, and references to
payments and notices of redemption to security holders will mean payments and
notices of redemption to DTC as the registered holder of the securities for
distribution to participants in accordance with DTC's procedures.
DTC is a limited purpose trust company organized under the laws of the State
of New York, a member of the Federal Reserve System, a 'clearing corporation'
within the meaning of the New York Uniform Commercial Code and a 'clearing
agency' registered under section 17A of the Securities Exchange Act. The rules
applicable to DTC and its participants are on file with the SEC.
Honeywell will not have any responsibility or liability for any aspect of
the records relating to, or payments made on account of, beneficial ownership
interests in the book-entry securities or for maintaining, supervising or
reviewing any records relating to the beneficial ownership interests.
PLAN OF DISTRIBUTION
We may sell the securities:
through underwriters;
through agents; or
directly to institutional purchasers.
The related prospectus supplement will set forth the terms of the offering
of the securities, including the following:
the name or names of any underwriters;
the purchase price and the proceeds we will receive from the sale;
any underwriting discounts and other items constituting underwriters'
compensation; and
any initial public offering price and any discounts or concessions allowed
or reallowed or paid to dealers.
If underwriters are used in the sale, the securities will be acquired by the
underwriters for their own account and may be resold from time to time in one or
more transactions, including
15
negotiated transactions, at a fixed public offering price or at varying prices
determined at the time of sale. The securities may be either offered to the
public through underwriting syndicates represented by managing underwriters or
by underwriters without a syndicate. The obligations of the underwriters to
purchase securities will be subject to conditions precedent and the underwriters
will be obligated to purchase all the securities of a series if any are
purchased. Any initial public offering price and any discounts or concessions
allowed or reallowed or paid to dealers may be changed from time to time.
Securities may be sold directly by us or through agents designated by us
from time to time. Any agent involved in the offer or sale of the securities in
respect of which this prospectus is delivered will be named, and any commissions
payable by us to that agent will be set forth, in the related prospectus
supplement. Unless otherwise indicated in the related prospectus supplement, any
agent will be acting on a best efforts basis for the period of its appointment.
We may authorize agents or underwriters to solicit offers by certain types
of institutions to purchase securities from us at the public offering price set
forth in the related prospectus supplement pursuant to delayed delivery
contracts. These contracts will provide for payment and delivery on a specified
date in the future. The conditions to these contracts and the commissions
payable for solicitation of such contracts will be set forth in the applicable
prospectus supplement.
Agents and underwriters may be entitled to indemnification by us against
civil liabilities arising out of this prospectus, including liabilities under
the Securities Act of 1933, or to contribution with respect to payments which
the agents or underwriters may be required to make relating to those
liabilities.
Each series of debt securities or preferred stock will be a new issue of
securities with no established trading market. Any underwriter may make a market
in the debt securities, but will not be obligated to do so and may discontinue
any market making at any time without notice. No assurance can be given as to
the liquidity of the trading market for any debt securities or preferred stock.
Shares of common stock offered under this prospectus will be listed on the
New York, Chicago, Pacific and London stock exchanges.
Agents and underwriters may be engaged in transactions with, or perform
commercial or investment banking or other services for, us or our subsidiaries
or affiliates, in the ordinary course of business.
We will estimate our expenses associated with any offerings of debt
securities, preferred stock or common stock in the prospectus supplement
relating to such offering.
EXPERTS
The financial statements incorporated in this prospectus by reference to the
Annual Report on Form 10-K for the year ended December 31, 2001 have been so
incorporated in reliance on the report of PricewaterhouseCoopers LLP,
independent accountants, given on the authority of said firm as experts in
auditing and accounting.
LEGAL OPINIONS
Certain legal matters will be passed upon for Honeywell by Gail E. Lehman,
Esq., Assistant General Counsel, Corporate and Finance, of Honeywell, and for
any underwriters by Skadden, Arps, Slate, Meagher & Flom LLP, New York, New
York. Ms. Lehman beneficially owns shares of Honeywell common stock and has
options to acquire additional shares of Honeywell common stock granted under
option plans of Honeywell. Skadden, Arps, Slate, Meagher & Flom LLP has from
time to time provided any may continue to provide legal advice and services
to Honeywell.
In the opinions described above, certain assumptions will be made regarding
future action required to be taken by Honeywell and others in connection with
the issuance and sale of any particular offered securities, the specific terms
of those offered securities and other matters which
16
may affect the validity of those offered securities but which cannot be
ascertained on the date of the relevant opinion.
WHERE YOU CAN FIND MORE INFORMATION ABOUT HONEYWELL
We file annual, quarterly and current reports, proxy statements and other
information with the SEC. You may read and copy any document we file at the
SEC's public reference room located at 450 Fifth Street, N.W., Room 1024,
Washington, DC 20549
Please call the SEC at 1-800-SEC-0330 for further information on the public
reference room. Our SEC filings are also available to the public at the SEC's
web site at http://www.sec.gov.
You may also inspect reports, proxy statements and other information about
Honeywell at the offices of the New York Stock Exchange Inc., 20 Broad Street,
New York, NY 10005; the Chicago Stock Exchange, One Financial Place, 440 South
LaSalle Street, Chicago, IL 60605; and the Pacific Exchange, 115 Sansome Street,
San Francisco, CA 94104.
The SEC allows us to 'incorporate by reference' into this prospectus the
information we file with it, which means that we can disclose important
information to you by referring you to those documents. The information
incorporated by reference is considered to be a part of this prospectus, and
information filed with the SEC after the date of this prospectus will update and
supersede information on file with the SEC as of the date of this prospectus. We
incorporate by reference:
HONEYWELL'S SEC FILINGS (FILE NO. 1-8974) DESCRIPTION, PERIOD OR DATE
----------------------------------------- ---------------------------
Annual Report on Form 10-K Year ended December 31, 2001
Registration Statement on Form 8-B Filed on August 16, 1985, containing a description
of our common stock
Current Reports on Form 8-K Filed on February 19 and March 4, 2002
We incorporate by reference additional documents that we may file with the
SEC after the date of this prospectus. These documents include periodic reports,
which may include Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K, as well as proxy statements.
You can obtain any of the documents incorporated by reference in this
prospectus through us, or from the SEC through the SEC's web site at the address
provided above. Documents incorporated by reference are available from us
without charge, excluding any exhibits to those documents unless the exhibit is
specifically incorporated by reference as an exhibit in this prospectus. You can
obtain documents incorporated by reference in this prospectus free of charge by
requesting them in writing or by telephone from us at the following address and
telephone number:
Honeywell International Inc.
101 Columbia Road
P.O. Box 2245
Morris Township, NJ 07962-2245
Attention: Corporate Publications
Telephone No.: (973) 455-5402
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
We have made forward-looking statements in this document and in documents
that are incorporated by reference in this document that are subject to risks
and uncertainties. Forward-looking statements include information concerning
possible or assumed future actions, events or
17
results of operations of Honeywell. Forward-looking statements include the
information in this document, specifically, regarding:
efficiencies growth
cost savings business diversification
sales enhancements future economic performance
income and margins future acquisitions
earnings per share management's plans
free cash flow business portfolios
With respect to all forward-looking statements, we claim the protection of
the safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995.
18
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
Securities and Exchange Commission Registration Fee......... $253,000
Printing.................................................... 60,000*
Legal Fees and Expenses..................................... 100,000*
Accountants' Fees and Expenses.............................. 30,000*
Trustees' Fees and Expenses................................. 50,000*
Rating Agency Fees.......................................... 275,000*
Miscellaneous Expenses...................................... 10,000*
--------
Total................................................... $778,000*
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--------
---------
* Estimated.
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 145 of the Delaware General Corporation Law (DGCL) provides that a
corporation may indemnify directors and officers as well as other employees and
individuals against expenses (including attorneys' fees), judgments, fines, and
amounts paid in settlement in connection with specified actions, suits,
proceedings whether civil, criminal, administrative, or investigative (other
than action by or in the right of the corporation -- a 'derivative action'), if
they acted in good faith and in a manner they reasonably believed to be in or
not opposed to the best interests of the corporation and, with respect to any
criminal action or proceeding, had no reasonable cause to believe their conduct
was unlawful. A similar standard is applicable in the case of derivative
actions, except that indemnification only extends to expenses (including
attorneys' fees) incurred in connection with the defense or settlement of such
action, and the statute requires court approval before there can be any
indemnification where the person seeking indemnification has been found liable
to the corporation. The statute provides that it is not exclusive of other
indemnification that may be granted by a corporation's charter, by-laws,
disinterested director vote, shareowner vote, agreement, or otherwise.
Section 102(b)(7) of the DGCL permits a corporation to provide in its
certificate of incorporation that a director of the corporation shall not be
personally liable to the corporation or its shareowners for monetary damages for
breach of fiduciary duty as a director, except for liability for (i) any breach
of the director's duly of loyalty to the corporation or its shareowners, (ii)
acts or omissions not in good faith or which involve intentional misconduct or a
knowing violation of law, (iii) payment of unlawful dividends or unlawful stock
purchases or redemptions, or (iv) any transaction from which the director
derived an improper personal benefit.
Under Article ELEVENTH of Honeywell's Restated Certificate of Incorporation,
each person who is or was a director or officer of Honeywell, and each director
or officer of Honeywell who serves or served any other enterprise or
organization at the request of Honeywell, shall be indemnified by Honeywell to
the full extent permitted by the DGCL.
Under the DGCL, to the extent that such a person is successful on the merits
or otherwise in defense of a suit or proceeding brought against such person by
reason of the fact that such person is or was a director or officer of
Honeywell, or serves or served any other enterprise or organization at the
request of Honeywell, such person shall be indemnified against expenses
(including attorneys' fees) actually and reasonably incurred in connection with
such action.
If unsuccessful in defense of a third-party civil suit or a criminal suit,
or if such a suit is settled, such a person shall be indemnified under such law
against both (1) expenses (including attorneys' fees) and (2) judgments, fines
and amounts paid in settlement if such person acted in good faith and in a
manner such person reasonably believed to be in, or not opposed to, the best
interests of Honeywell, and with respect to any criminal action, had no
reasonable cause to believe such person's conduct was unlawful.
II-1
If unsuccessful in defense of a suit brought by or in the right of
Honeywell, or if such suit is settled, such a person shall be indemnified under
such law only against expenses (including attorneys' fees) actually and
reasonably incurred in the defense or settlement of such suit if such person
acted in good faith and in a manner such person reasonably believed to be in, or
not opposed to, the best interests of Honeywell except that if such a person is
adjudged to be liable in such suit to Honeywell, such person cannot be made
whole even for expenses unless the court determines that such person is fairly
and reasonably entitled to indemnity for such expenses.
In addition, Honeywell maintains directors' and officers' reimbursement and
liability insurance pursuant to standard form policies. The risks covered by
such policies include certain liabilities under the securities laws.
ITEM 16. EXHIBITS.
EXHIBIT NO.
-----------
1.1 -- Form of Underwriting Agreement for issuances of debt
securities (filed herewith).
1.2 -- Underwriting Agreement for issuances of preferred stock
or common stock (to be filed with a Current Report on
Form 8-K at the time of offer).
3.1 -- Honeywell's Restated Certificate of Incorporation
(incorporated by reference to Exhibit 3(i) to our Form 8-K
filed December 3, 1999).
3.2 -- Honeywell's By-laws, as amended (incorporated by
reference to Exhibit 3(ii) to our Form 10-Q for the
quarter ended September 30, 2001).
4.1 -- Indenture dated as of October 1, 1985 relating to debt
securities between Honeywell and JPMorgan Chase Bank, as
Trustee (incorporated by reference to Exhibit 4.1 to
Registration Statement No. 333-86157).
4.2 -- First Supplemental Indenture dated as of February 1, 1991
relating to debt securities between Honeywell and JPMorgan
Chase Bank, as Trustee (incorporated by reference to
Exhibit 4.2 to Registration Statement No. 333-86157).
4.3 -- Second Supplemental Indenture dated as of November 1,
1997 relating to debt securities between Honeywell and
JPMorgan Chase Bank, as Trustee (incorporated by reference
to Exhibit 4.5 to Amendment No. 2 to Registration
Statement No. 33-04551).
5.1 -- Opinion of Gail E. Lehman, Esq., with respect to the
legality of the debt securities being registered hereby
(filed herewith).
12 -- Statement of Computation of Honeywell's ratio of earnings
to fixed charges (filed herewith).
15 -- Independent Accountants' Acknowledgment Letter as to the
incorporation of their reports relating to unaudited
interim financial information (filed herewith).
23.1 -- Consent of PricewaterhouseCoopers LLP (filed herewith).
23.2 -- Consent of Gail E. Lehman, Esq. (contained in the opinion
filed as Exhibit 5.1 to this registration statement).
24 -- Powers of Attorney (filed herewith).
25.1 -- Form T-1 Statement of Eligibility and Qualification of
JPMorgan Chase Bank with respect to the Indenture (filed
herewith).
ITEM 17. UNDERTAKINGS.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made,
a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in
the registration statement. Notwithstanding the foregoing, any increase
or decrease in volume of securities offered (if the total dollar volume
of securities offered would not exceed that
II-2
which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in volume and price represent no more than a 20
percent change in the maximum aggregate offering price set forth in the
'Calculation of Registration Fee' table in the effective registration
statement; and
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement;
provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if
the information required to be included in a post-effective amendment by
those paragraphs is contained in periodic reports filed by the registrant
pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of
1934 that are incorporated by reference in the registration statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
(4) For purposes of determining any liability under the Securities Act
of 1933, the information omitted from the form of prospectus filed as part
of this registration statement in reliance upon Rule 430A and contained in a
form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4)
or 497(b) under the Act shall be deemed to be part of this registration
statement as of the time it was declared effective.
(5) That, for the purpose of determining any liability under the
Securities Act of 1933, each post-effective amendment that contains a form
of prospectus shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof.
(6) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing provisions,
or otherwise, the registrant has been advised that in the opinion of the
Commission such indemnification is against public policy as expressed in the
Securities Act of 1933 and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Securities Act of 1933 and will be
governed by the final adjudication of such issue.
(7) To file an application for the purpose of determining the
eligibility of the trustee to act under subsection (a) of Section 310 of the
Trust Indenture Act of 1939, as amended ('Trust Indenture Act') in
accordance with the rules and regulations prescribed by the Commission under
Section 305(b)(2) of the Trust Indenture Act.
(b) The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
II-3
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the Township of Morris, State of New Jersey, on the 24th Day of
April, 2002.
HONEYWELL INTERNATIONAL INC.
By: /s/ RICHARD F. WALLMAN
.................................
RICHARD F. WALLMAN
SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons in the
capacities and on the dates indicated.
NAME TITLE DATE
---- ----- ----
*
......................................... Chairman of the Board
LAWRENCE A. BOSSIDY
*
......................................... Director, President, and Chief
DAVID M. COTE Executive Officer
*
......................................... Director
HANS W. BECHERER
*
......................................... Director
GORDON M. BETHUNE
*
......................................... Director
MARSHALL N. CARTER
*
......................................... Director
JAIME CHICO PARDO
*
......................................... Director
ANN M. FUDGE
*
......................................... Director
JAMES J. HOWARD
*
......................................... Director
BRUCE KARATZ
*
......................................... Director
ROBERT P. LUCIANO
*
......................................... Director
RUSSELL E. PALMER
II-4
NAME TITLE DATE
---- ----- ----
*
......................................... Director
IVAN G. SEIDENBERG
*
......................................... Director
JOHN R. STAFFORD
*
......................................... Director
MICHAEL W. WRIGHT
/s/ RICHARD F. WALLMAN Senior Vice President and Chief April 24, 2002
......................................... Financial Officer
RICHARD F. WALLMAN (Principal Financial Officer)
/s/ JOHN J. TUS Vice President and Controller April 24, 2002
......................................... (Chief Accounting Officer)
JOHN J. TUS
* By: /s/ VICTOR P. PATRICK April 24, 2002
....................................
VICTOR P. PATRICK,
ATTORNEY-IN-FACT
II-5
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
----------- -----------
1.1 -- Form of Underwriting Agreement for issuances of debt
securities (filed herewith).
1.2 -- Underwriting Agreement for issuances of preferred stock
or common stock (to be filed with a Current Report on
Form 8-K at the time of offer).
3.1 -- Honeywell's Restated Certificate of Incorporation
(incorporated by reference to Exhibit 3(i) to our Form 8-K
filed December 3, 1999).
3.2 -- Honeywell's By-laws, as amended (incorporated by
reference to Exhibit 3(ii) to our Form 10-Q for the
quarter ended September 30, 2001).
4.1 -- Indenture dated as of October 1, 1985 relating to debt
securities between Honeywell and JPMorgan Chase Bank, as
Trustee (incorporated by reference to Exhibit 4.1 to
Registration Statement No. 333-86157).
4.2 -- First Supplemental Indenture dated as of February 1, 1991
relating to debt securities between Honeywell and JPMorgan
Chase Bank, as Trustee (incorporated by reference to
Exhibit 4.2 to Registration Statement No. 333-86157).
4.3 -- Second Supplemental Indenture dated as of November 1,
1997 relating to debt securities between Honeywell and
JPMorgan Chase Bank, as Trustee (incorporated by reference
to Exhibit 4.5 to Amendment No. 2 to Registration
Statement No. 33-04551).
5.1 -- Opinion of Gail E. Lehman, Esq., with respect to the
legality of the debt securities being registered hereby
(filed herewith).
12 -- Statement of Computation of Honeywell's ratio of earnings
to fixed charges (filed herewith).
15 -- Independent Accountants Acknowledgment Letter as to the
incorporation of their reports relating to unaudited
interim financial information (filed herewith).
23.1 -- Consent of PricewaterhouseCoopers LLP (filed herewith).
23.2 -- Consent of Gail E. Lehman, Esq. (contained in the opinion
filed as Exhibit 5.1 to this registration statement).
24 -- Powers of Attorney (filed herewith).
25.1 -- Form T-1 Statement of Eligibility and Qualification of
JPMorgan Chase Bank with respect to the Indenture (filed
herewith).