This excerpt taken from the DEI 10-K filed Apr 2, 2007.
We account for stock-based compensation, including stock options and long-term incentive units granted in connection with our IPO, using the fair value method of accounting under FAS No. 123R (revised 2004), Share-Based Payment. The estimated fair value of the stock options and the long-term incentive units is being amortized over their respective vesting periods.
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements(continued)
(in thousands, except shares and per share data)