Exhibit 12
United Parcel Service, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
| (in millions) | Nine Months Ended September 30, | |||||
| 2005 |
2004 | |||||
| Earnings: |
||||||
| Earnings before income taxes and accounting changes |
$ | 4,408 | $ | 3,730 | ||
| Add: Interest expense |
120 | 112 | ||||
| Add: One-third of rental expense (a) |
185 | 171 | ||||
| Total earnings |
$ | 4,713 | $ | 4,013 | ||
| Fixed Charges: |
||||||
| Interest expense |
$ | 120 | $ | 112 | ||
| Interest capitalized |
25 | 18 | ||||
| One-third of rental expense (a) |
185 | 171 | ||||
| Total fixed charges |
$ | 330 | $ | 301 | ||
| Ratio of Earnings to Fixed Charges |
14.3 | 13.3 | ||||
| (a) | Considered to be representative of interest factor in rental expense. |