. 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 September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Numerator
Net income attributable to Generac Holdings Inc.	$	39,709	$	26,183	$	78,211	$	57,279
Redeemable noncontrolling interest redemption value adjustment		-		-		909		-
Net income attributable to common shareholders	$	39,709	$	26,183	$	79,120	$	57,279

Denominator
Weighted average shares, basic		61,758,190		64,615,935		62,094,807		65,506,469
Dilutive effect of stock compensation awards (1)		558,598		510,182		608,462		485,658
Diluted shares		62,316,788		65,126,117		62,703,269		65,992,127

Net income attributable to common shareholders per share
Basic	$	0.64	$	0.41	$	1.27	$	0.87
Diluted	$	0.64	$	0.40	$	1.26	$	0.87

(

) Excludes

approximately

146,000

stock options for the

three

-month period ended

September 30, 2017,

and

188,800

stock options for the

nine

-month period ended

September 30, 2017,

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