Note 10 - Earnings Per Share

3 Months Ended

Mar. 31, 2016

. Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to 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:

	Three Months Ended March 31,
	2016		2015

Net income attributable to Generac Holdings Inc. (numerator)	$	10,208	$	19,685
Weighted average shares (denominator)
Basic		66,099,755		68,806,337
Dilutive effect of stock compensation awards (1)		500,285		1,282,598
Diluted		66,600,040		70,088,935
Net income attributable to Generac Holdings Inc. per share
Basic	$	0.15	$	0.29
Diluted	$	0.15	$	0.28

(1) Excludes approximately 256,600 stock options and 3,400 shares of restricted stock for the three month period ended March 31, 2016, and 89,100 stock options and 200 shares of restricted stock for the three month period ended March 31, 2015, as the impact of such awards was anti-dilutive.