Exhibit 12
United
Parcel Service, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
|
|
|
Nine Months Ended |
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||||
|
(in millions) |
|
2004 |
|
2003 |
|
||
|
Earnings: |
|
|
|
|
|
||
|
Earnings before income taxes and accounting changes |
|
$ |
3,730 |
|
$ |
3,073 |
|
|
Add: Interest expense |
|
112 |
|
94 |
|
||
|
Add: One-third of rental expense (a) |
|
171 |
|
169 |
|
||
|
Total earnings |
|
$ |
4,013 |
|
$ |
3,336 |
|
|
|
|
|
|
|
|
||
|
Fixed Charges: |
|
|
|
|
|
||
|
Interest expense |
|
$ |
112 |
|
$ |
94 |
|
|
Interest capitalized |
|
18 |
|
21 |
|
||
|
One-third of rental expense (a) |
|
171 |
|
169 |
|
||
|
Total fixed charges |
|
$ |
301 |
|
$ |
284 |
|
|
|
|
|
|
|
|
||
|
Ratio of Earnings to Fixed Charges |
|
13.3 |
|
11.7 |
|
||
(a) Considered to be representative of interest factor in rental expense.