Exhibit 12
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
Ratio of Earnings to Fixed Charges
| Year Ended December 31, | |||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||
| Earnings: |
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| Earnings before income taxes and accounting changes |
$ | 5,015 | $ | 431 | $ | 6,510 | $ | 6,075 | $ | 4,922 | |||||
| Add: Interest expense |
442 | 246 | 211 | 172 | 149 | ||||||||||
| Add: Interest factor in rental expense |
278 | 296 | 304 | 281 | 253 | ||||||||||
| Total earnings |
$ | 5,735 | $ | 973 | $ | 7,025 | $ | 6,528 | $ | 5,324 | |||||
| Fixed charges: |
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| Interest expense |
$ | 442 | $ | 246 | $ | 211 | $ | 172 | $ | 149 | |||||
| Interest capitalized |
48 | 67 | 48 | 32 | 25 | ||||||||||
| Interest factor in rental expense |
278 | 296 | 304 | 281 | 253 | ||||||||||
| Total fixed charges |
$ | 768 | $ | 609 | $ | 563 | $ | 485 | $ | 427 | |||||
| Ratio of earnings to fixed charges |
7.5 | 1.6 | 12.5 | 13.5 | 12.5 | ||||||||||