Note 11 - Earnings Per Share

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015

Net income attributable to Generac Holdings Inc. (numerator)	$	26,183	$	34,036	$	57,279	$	68,565
Weighted average shares (denominator)
Basic		64,615,935		68,175,466		65,506,469		68,642,479
Dilutive effect of stock compensation awards (1)		510,182		1,006,999		485,658		1,138,821
Diluted		65,126,117		69,182,465		65,992,127		69,781,300
Net income attributable to Generac Holdings Inc. per share
Basic	$	0.41	$	0.50	$	0.87	$	1.00
Diluted	$	0.40	$	0.49	$	0.87	$	0.98

(1) Excludes

approximately 208,400 stock options for the three month period ended September 30, 2016 and 172,900 stock options for the nine month period ended September 30, 2016, as the impact of such awards was anti-dilutive. Excludes approximately 250,900 stock options and 11,000 shares of restricted stock for the three month period ended September 30, 2015 and 138,900 stock options and 800 shares of restricted stock for the nine month period ended September 30, 2015, as the impact of such awards was anti-dilutive.