Note 11 - Earnings Per Share

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2016		2015		2016		2015

Net income attributable to Generac Holdings Inc. (numerator)	$	20,888	$	14,844	$	31,096	$	34,529
Weighted average shares (denominator)
Basic		65,870,714		68,961,877		65,955,455		68,886,672
Dilutive effect of stock compensation awards (1)		517,867		1,101,186		510,315		1,213,268
Diluted		66,388,581		70,063,063		66,465,770		70,099,940
Net income attributable to Generac Holdings Inc. per share
Basic	$	0.32	$	0.22	$	0.47	$	0.50
Diluted	$	0.31	$	0.21	$	0.47	$	0.49

(1) Excludes approximately 189,500 stock options and 3,000 shares of restricted stock for the three month period ended June 30, 2016, and 215,800 stock options and 3,400 shares of restricted stock for the six month period ended June 30, 2016, as the impact of such awards was anti-dilutive. Excludes approximately 142,900 stock options and 2,300 shares of restricted stock for the three month period ended June 30, 2015 and 104,400 stock options for the six month period ended June 30, 2015, as the impact of such awards was anti-dilutive.