Exhibit 12
United Parcel Service, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
| (in millions) |
Year Ended December 31, | ||||||||||||||
| 2005 |
2004 |
2003 |
2002 |
2001 | |||||||||||
| Earnings: |
|||||||||||||||
| Earnings before income taxes and accounting changes |
$ | 6,075 | $ | 4,922 | $ | 4,370 | $ | 5,009 | $ | 3,937 | |||||
| Add: Interest expense |
172 | 149 | 121 | 173 | 184 | ||||||||||
| Add: One-third of rental expense (a) |
248 | 231 | 226 | 228 | 249 | ||||||||||
| Total earnings |
$ | 6,495 | $ | 5,302 | $ | 4,717 | $ | 5,410 | $ | 4,370 | |||||
| Fixed Charges: |
|||||||||||||||
| Interest expense |
$ | 172 | $ | 149 | $ | 121 | $ | 173 | $ | 184 | |||||
| Interest capitalized |
32 | 25 | 25 | 25 | 47 | ||||||||||
| One-third of rental expense (a) |
248 | 231 | 226 | 228 | 249 | ||||||||||
| Total fixed charges |
$ | 452 | $ | 405 | $ | 372 | $ | 426 | $ | 480 | |||||
| Ratio of Earnings to Fixed Charges |
14.4 | 13.1 | 12.7 | 12.7 | 9.1 | ||||||||||
| (a) | Considered to be representative of interest factor in rental expense. |