Exhibit 12
United Parcel Service, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
| Year Ended December 31, | |||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||
| Earnings: |
|||||||||||||||
| Earnings before income taxes and accounting changes |
$ | 431 | $ | 6,510 | $ | 6,075 | $ | 4,922 | $ | 4,370 | |||||
| Add: Interest expense |
246 | 211 | 172 | 149 | 121 | ||||||||||
| Add: Interest factor in rental expense |
296 | 304 | 281 | 253 | 244 | ||||||||||
| Total earnings |
$ | 973 | $ | 7,025 | $ | 6,528 | $ | 5,324 | $ | 4,735 | |||||
| Fixed charges: |
|||||||||||||||
| Interest expense |
$ | 246 | $ | 211 | $ | 172 | $ | 149 | $ | 121 | |||||
| Interest capitalized |
67 | 48 | 32 | 25 | 25 | ||||||||||
| Interest factor in rental expense |
296 | 304 | 281 | 253 | 244 | ||||||||||
| Total fixed charges |
$ | 609 | $ | 563 | $ | 485 | $ | 427 | $ | 390 | |||||
| Ratio of earnings to fixed charges |
1.6 | 12.5 | 13.5 | 12.5 | 12.1 | ||||||||||