Note 14 - Earnings Per Share

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

14. 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. Refer to Note 4, “Redeemable Noncontrolling Interest,” to the consolidated financial statements for further information regarding the accounting for redeemable noncontrolling interests.

The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share:

	Year Ended December 31,
	2019		2018			2017
Numerator
Net income attributable to Generac Holdings Inc.	$	252,007	$	238,257		$	157,808
Redeemable noncontrolling interest redemption value adjustment		1,253		(17,970	)		909
Net income attributable to common shareholders	$	253,260	$	220,287		$	158,717
Denominator
Weighted average shares, basic		61,926,986		61,662,031			62,040,704
Dilutive effect of stock compensation awards (1)		938,460		571,194			602,168
Diluted shares		62,865,446		62,233,225			62,642,872
Net income attributable to common shareholders per share
Basic	$	4.09	$	3.57		$	2.56
Diluted	$	4.03	$	3.54		$	2.53

(1) Excludes approximately 26,100 and 147,400 stock options for the years ended December 31, 2018 and 2017, respectively, as the impact of such awards was anti-dilutive. There were no awards with an anti-dilutive impact for the year ended December 31, 2019.