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

	Three Months Ended March 31,
	2017		2016
Numerator
Net income attributable to Generac Holdings Inc.	$	12,842	$	10,208
Redeemable noncontrolling interest redemption value adjustment		614		-
Net income attributable to common shareholders	$	13,456	$	10,208

Denominator
Weighted average shares, basic		62,366,263		66,099,755
Dilutive effect of stock compensation awards (1)		569,863		500,285
Diluted shares		62,936,126		66,600,040

Net income attributable to common shareholders per share
Basic	$	0.22	$	0.15
Diluted	$	0.21	$	0.15

(1)

Excludes

approximately

154,900

stock options for the

three

month period ended

March

31,

2017,

and

256,600

stock options and

3,400

shares of restricted stock for the

three

month period ended

March

31,

2016,

as the impact of such awards was anti-dilutive.