Exhibit 12
United Parcel Service, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
| Six months Ended June 30, |
Year Ended December 31, | |||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||
| Earnings: |
||||||||||||||||||
| Income before income taxes |
$ | 2,253 | $ | 3,366 | $ | 5,015 | $ | 431 | $ | 6,510 | $ | 6,075 | ||||||
| Add: Interest expense |
169 | 445 | 442 | 246 | 211 | 172 | ||||||||||||
| Add: Interest factor in rental expense |
98 | 207 | 278 | 296 | 304 | 281 | ||||||||||||
| Total earnings |
$ | 2,520 | $ | 4,018 | $ | 5,735 | $ | 973 | $ | 7,025 | $ | 6,528 | ||||||
| Fixed charges: |
||||||||||||||||||
| Interest expense |
$ | 169 | $ | 445 | $ | 442 | $ | 246 | $ | 211 | $ | 172 | ||||||
| Interest capitalized |
11 | 37 | 48 | 67 | 48 | 32 | ||||||||||||
| Interest factor in rental expense |
98 | 207 | 278 | 296 | 304 | 281 | ||||||||||||
| Total fixed charges |
$ | 278 | $ | 689 | $ | 768 | $ | 609 | $ | 563 | $ | 485 | ||||||
| Ratio of earnings to fixed charges |
9.1 | 5.8 | 7.5 | 1.6 | 12.5 | 13.5 | ||||||||||||