. 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 June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Numerator
Net income attributable to Generac Holdings Inc.	$	25,660	$	20,888	$	38,502	$	31,096
Redeemable noncontrolling interest redemption value adjustment		295		-		909		-
Net income attributable to common shareholders	$	25,955	$	20,888	$	39,411	$	31,096

Denominator
Weighted average shares, basic		62,146,393		65,870,714		62,260,170		65,955,455
Dilutive effect of stock compensation awards (1)		489,044		517,867		589,707		510,315
Diluted shares		62,635,437		66,388,581		62,849,877		66,465,770

Net income attributable to common shareholders per share
Basic	$	0.42	$	0.32	$	0.63	$	0.47
Diluted	$	0.41	$	0.31	$	0.63	$	0.47

(

) Excludes

approximately

279,200

stock options and

7,000

shares of restricted stock for the

three

month period ended

June 30, 2017,

and

193,200

stock options for the

six

month period ended

June 30, 2017,

as the impact of such awards was anti-dilutive. 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.