Note 12 - Earnings Per Share

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

12. Earnings Per Share

Basic earnings per share is calculated by dividing net income

attributable to the common shareholders of the Company by the weighted average number of common shares outstanding during the period, exclusive of restricted shares. Except where the result would be anti-dilutive, diluted earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options, as well as their related income tax benefits. The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share:

	Year Ended December 31,
	2016			2015		2014
Numerator
Net income attributable to Generac Holdings Inc.	$	98,788		$	77,747	$	174,613
Redeemable noncontrolling interest redemption value adjustment		(909	)		-		-
Net income attributable to common shareholders	$	97,879		$	77,747	$	174,613
Denominator
Weighted average shares, basic		64,905,793			68,096,051		68,538,248
Dilutive effect of stock compensation awards (1)		476,981			1,104,246		1,632,796
Diluted shares		65,382,774			69,200,297		70,171,044
Net income attributable to common shareholders per share
Basic	$	1.51		$	1.14	$	2.55
Diluted	$	1.50		$	1.12	$	2.49

(1)

Excludes

approximately

15,800,

161,400

and

81,600

stock options for the years ended

December

31,

2016,

2015

and

2014,

respectively, as the impact of such awards was anti-dilutive. Excludes approximately

1,000

shares of restricted stock for the year ended

December

31,

2015,

as the impact of such awards was anti-dilutive.