Exhibit 12
United Parcel Service, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
| Three Months Ended March 31, | ||||||
| (in millions) | 2005 |
2004 | ||||
| Earnings: |
||||||
| Earnings before income taxes and accounting changes |
$ | 1,378 | $ | 1,195 | ||
| Add: Interest expense |
37 | 39 | ||||
| Add: One-third of rental expense (a) |
62 | 59 | ||||
| Total earnings |
$ | 1,477 | $ | 1,293 | ||
| Fixed Charges: |
||||||
| Interest expense |
$ | 37 | $ | 39 | ||
| Interest capitalized |
7 | 6 | ||||
| One-third of rental expense (a) |
62 | 59 | ||||
| Total fixed charges |
$ | 106 | $ | 104 | ||
| Ratio of Earnings to Fixed Charges |
13.9 | 12.4 | ||||
| (a) | Considered to be representative of interest factor in rental expense. |