Exhibit 12
United Parcel Service, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
| (in millions) | Six Months Ended June 30, | |||||
| 2005 |
2004 | |||||
| Earnings: |
||||||
| Earnings before income taxes and accounting changes |
$ | 2,919 | $ | 2,484 | ||
| Add: Interest expense |
83 | 74 | ||||
| Add: One-third of rental expense (a) |
123 | 115 | ||||
| Total earnings |
$ | 3,125 | $ | 2,673 | ||
| Fixed Charges: |
||||||
| Interest expense |
$ | 83 | $ | 74 | ||
| Interest capitalized |
15 | 12 | ||||
| One-third of rental expense (a) |
123 | 115 | ||||
| Total fixed charges |
$ | 221 | $ | 201 | ||
| Ratio of Earnings to Fixed Charges |
14.1 | 13.3 | ||||
| (a) | Considered to be representative of interest factor in rental expense. |