Exhibit 12
United Parcel Service, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
| Three 2006 |
Year Ended December 31, | |||||||||||||||||
| 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||
| Earnings: |
||||||||||||||||||
| Earnings before income taxes and accounting changes |
$ | 1,530 | $ | 6,075 | $ | 4,922 | $ | 4,370 | $ | 5,009 | $ | 3,937 | ||||||
| Add: Interest expense |
48 | 172 | 149 | 121 | 173 | 184 | ||||||||||||
| Add: Interest factor in rental expense |
63 | 248 | 231 | 226 | 228 | 249 | ||||||||||||
| Total earnings |
$ | 1,641 | $ | 6,495 | $ | 5,302 | $ | 4,717 | $ | 5,410 | $ | 4,370 | ||||||
| Fixed charges: |
||||||||||||||||||
| Interest expense |
$ | 48 | $ | 172 | $ | 149 | $ | 121 | $ | 173 | $ | 184 | ||||||
| Interest capitalized |
8 | 32 | 25 | 25 | 25 | 47 | ||||||||||||
| Interest factor in rental expense |
63 | 248 | 231 | 226 | 228 | 249 | ||||||||||||
| Total fixed charges |
$ | 119 | $ | 452 | $ | 405 | $ | 372 | $ | 426 | $ | 480 | ||||||
| Ratio of earnings to fixed charges |
13.8 | 14.4 | 13.1 | 12.7 | 12.7 | 9.1 | ||||||||||||