Exhibit 12
United Parcel Service, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
| Year Ended December 31, | |||||||||||||||
| 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||
| Earnings: |
|||||||||||||||
| Earnings before income taxes and accounting changes |
$ | 6,510 | $ | 6,075 | $ | 4,922 | $ | 4,370 | $ | 5,009 | |||||
| Add: Interest expense |
211 | 172 | 149 | 121 | 173 | ||||||||||
| Add: Interest factor in rental expense |
304 | 281 | 253 | 244 | 257 | ||||||||||
| Total earnings |
$ | 7,025 | $ | 6,528 | $ | 5,324 | $ | 4,735 | $ | 5,439 | |||||
| Fixed charges: |
|||||||||||||||
| Interest expense |
$ | 211 | $ | 172 | $ | 149 | $ | 121 | $ | 173 | |||||
| Interest capitalized |
48 | 32 | 25 | 25 | 25 | ||||||||||
| Interest factor in rental expense |
304 | 281 | 253 | 244 | 257 | ||||||||||
| Total fixed charges |
$ | 563 | $ | 485 | $ | 427 | $ | 390 | $ | 455 | |||||
| Ratio of earnings to fixed charges |
12.5 | 13.5 | 12.5 | 12.1 | 12.0 | ||||||||||