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Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Net sales $ 2,023,464 $ 1,679,373 $ 1,447,743
Costs of goods sold 1,298,424 1,094,587 935,322
Gross profit 725,040 584,786 512,421
Operating expenses:      
Selling and service 191,887 174,841 164,860
Research and development 50,019 42,869 37,163
General and administrative 103,841 87,581 74,693
Amortization of intangibles 22,112 28,861 32,953
Total operating expenses 367,859 334,152 309,669
Income from operations 357,181 250,634 202,752
Other (expense) income:      
Interest expense (40,956) (42,667) (44,568)
Investment income 1,893 298 44
Loss on extinguishment of debt [1] (1,332) (574)
Loss on change in contractual interest rate [2] (2,957)
Other, net (5,710) (4,566) (1,000)
Total other expense, net (46,105) (46,935) (49,055)
Income before provision for income taxes 311,076 203,699 153,697
Provision for income taxes 69,856 44,142 56,519
Net income 241,220 159,557 97,178
Net income attributable to noncontrolling interests 2,963 1,749 24
Net income attributable to Generac Holdings Inc. $ 238,257 $ 157,808 $ 97,154
Net income attributable to common shareholders per common share - basic: (in dollars per share) $ 3.57 $ 2.56 $ 1.48
Weighted average common shares outstanding - basic: (in shares) 61,662,031 62,040,704 64,905,793
Net income attributable to common shareholders per common share - diluted: (in dollars per share) $ 3.54 $ 2.53 $ 1.47
Weighted average common shares outstanding - diluted: (in shares) 62,233,225 62,642,872 65,382,774
Other comprehensive income (loss):      
Foreign currency translation adjustment $ (5,976) $ 15,191 $ (18,545)
Net unrealized gain on derivatives 2,924 3,712 535
Pension liability adjustment 437 62 322
Other comprehensive income (loss) (2,615) 18,965 (17,688)
Total comprehensive income 238,605 178,522 79,490
Comprehensive income (loss) attributable to noncontrolling interests 1,647 5,549 (973)
Comprehensive income attributable to Generac Holdings Inc. $ 236,958 $ 172,973 $ 80,463
[1] Represents the write-off of original issue discount and capitalized debt issuance costs due to voluntary debt prepayments.
[2] For the year ended December 31, 2016, represents a non-cash loss relating to the continued 25 basis point increase in borrowing costs as a result of the credit agreement leverage ratio remaining above 3.0 times based on projections at that time. Following the May 2017 Term Loan amendment, which removed the pricing grid based on leverage ratio achieved, gains or losses on changes in contractual interest rate will no longer be recorded in the statements of comprehensive income. Refer to Note 10, "Credit Agreements," to the consolidated financial statements for further information on the gains and losses on changes in the contractual interest rate.