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Note 14 - Earnings Per Share

9 Months Ended

Sep. 30, 2019

14. Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the common stockholders 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. Refer to Note 3, “Redeemable Noncontrolling Interest” for further information regarding the accounting for redeemable noncontrolling interests.

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,
	2019			2018			2019		2018
Numerator
Net income attributable to Generac Holdings Inc.	$	75,574		$	75,776		$	182,393	$	162,682
Redeemable noncontrolling interest redemption value adjustment		(1,485	)		(6,912	)		191		(16,882	)
Net income attributable to common shareholders	$	74,089		$	68,864		$	182,584	$	145,800

Denominator
Weighted average shares, basic		61,973,447			61,579,564			61,878,500		61,659,817
Dilutive effect of stock compensation awards (1)		797,145			640,734			640,705		606,323
Diluted shares		62,770,592			62,220,298			62,519,205		62,266,140

Net income attributable to common shareholders per share
Basic	$	1.20		$	1.12		$	2.95	$	2.36
Diluted	$	1.18		$	1.11		$	2.92	$	2.34

(1) Excludes approximately 38,900 and 48,200 stock options for the three and nine months ended September 30, 2018, respectively, as the impact of such awards was anti-dilutive. There were no awards with an anti-dilutive impact for the three and nine months ended September 30, 2019.