Generac (GNRC) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Entity Registrant Name	GENERAC HOLDINGS INC.
Entity Central Index Key	1,474,735
Trading Symbol	gnrc
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding (in shares)		66,542,357
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 69,370	$ 115,857
Accounts receivable, less allowance for doubtful accounts	230,338	182,185
Inventories	374,709	325,375
Prepaid expenses and other assets	11,839	8,600
Total current assets	686,256	632,017
Property and equipment, net	197,623	184,213
Customer lists, net	59,928	39,313
Patents, net	57,002	53,772
Other intangible assets, net	3,733	2,768
Tradenames, net	164,340	161,057
Goodwill	723,443	669,719
Deferred income taxes	36,713	34,812
Other assets	4,459	964
Total assets	1,933,497	1,778,635
Current liabilities:
Short-term borrowings	34,055	8,594
Accounts payable	148,357	108,332
Accrued wages and employee benefits	21,367	13,101
Other accrued liabilities	87,716	82,540
Current portion of long-term borrowings and capital lease obligations	10,975	657
Total current liabilities	302,470	213,224
Long-term borrowings and capital lease obligations	1,047,146	1,037,132
Deferred income taxes	13,241	4,950
Other long-term liabilities	61,134	57,458
Total liabilities	1,423,991	$ 1,312,764
Redeemable noncontrolling interest	35,047
Stockholders’ equity:
Common stock, par value $0.01, 500,000,000 shares authorized, 70,131,132 and 69,582,669 shares issued at March 31, 2016 and December 31, 2015, respectively	701	$ 696
Additional paid-in capital	440,886	443,109
Treasury stock, at cost	(112,197)	(111,516)
Excess purchase price over predecessor basis	(202,116)	(202,116)
Retained earnings	368,381	358,173
Accumulated other comprehensive loss	(21,229)	(22,475)
Stockholders’ equity attributable to Generac Holdings Inc.	474,426	$ 465,871
Noncontrolling interests	33
Total stockholders’ equity	474,459	$ 465,871
Total liabilities and stockholders’ equity	$ 1,933,497	$ 1,778,635

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	70,131,132	69,582,669

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net sales	$ 286,535	$ 311,818
Costs of goods sold	188,475	209,215
Gross profit	98,060	102,603
Operating expenses:
Selling and service	37,269	30,128
Research and development	8,197	8,163
General and administrative	17,833	14,206
Amortization of intangibles	7,797	5,195
Total operating expenses	71,096	57,692
Income from operations	26,964	44,911
Other (expense) income:
Interest expense	(11,035)	(11,268)
Investment income	$ 32	37
Loss on extinguishment of debt		$ (1,368)
Costs related to acquisitions	$ (417)
Other, net	387	$ (1,609)
Total other expense, net	(11,033)	(14,208)
Income before provision for income taxes	15,931	30,703
Provision for income taxes	5,719	11,018
Net income	10,212	$ 19,685
Net income attributable to noncontrolling interests	4
Net income attributable to Generac Holdings Inc.	$ 10,208	$ 19,685
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share)	$ 0.15	$ 0.29
Weighted average common shares outstanding - basic: (in shares)	66,099,755	68,806,337
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share)	$ 0.15	$ 0.28
Weighted average common shares outstanding - diluted: (in shares)	66,600,040	70,088,935
Comprehensive income	$ 11,454	$ 12,867

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net income	$ 10,212	$ 19,685
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation	4,996	3,839
Amortization of intangible assets	7,797	5,195
Amortization of original issue discount and deferred financing costs	$ 1,056	1,705
Loss on extinguishment of debt		1,368
Deferred income taxes	$ 5,069	3,182
Share-based compensation expense	2,485	2,508
Other	81	9
Net changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	8,237	31,930
Inventories	(10,752)	(37,472)
Other assets	(3,882)	255
Accounts payable	(6,348)	2,619
Accrued wages and employee benefits	7,301	(2,304)
Other accrued liabilities	2,628	(456)
Excess tax benefits from equity awards	(6,729)	(6,806)
Net cash provided by operating activities	22,151	25,257
Investing activities
Proceeds from sale of property and equipment	7	29
Expenditures for property and equipment	(7,093)	(6,528)
Acquisitions of businesses, net of cash acquired	(61,280)	374
Net cash used in investing activities	(68,366)	(6,125)
Financing activities
Proceeds from short-term borrowings	8,508	4,000
Repayments of short-term borrowings	(4,151)	(6,256)
Repayments of long-term borrowings and capital lease obligations	(46)	(50,375)
Cash dividends paid	(76)	(1,427)
Taxes paid related to the net share settlement of equity awards	(12,070)	(9,304)
Excess tax benefits from equity awards	6,729	6,806
Net cash used in financing activities	(1,106)	(56,556)
Effect of exchange rate changes on cash and cash equivalents	834	(2,252)
Net decrease in cash and cash equivalents	(46,487)	(39,676)
Cash and cash equivalents at beginning of period	115,857	189,761
Cash and cash equivalents at end of period	$ 69,370	$ 150,085

Note 1 - Description of Busines

Note 1 - Description of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	1. Description of Business and Basis of Presentation Generac Holdings Inc. (the Company) is a leading designer and manufacturer of a wide range of power generation equipment and other engine powered products serving the residential, light-commercial, industrial, oil & gas, and construction markets. Generac’s power products are available globally through a broad network of independent dealers, distributors, retailers, wholesalers and equipment rental companies, as well as sold direct to certain end user customers. The Company has executed a number of acquisitions that support our strategic plan (as discussed in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2015). A summary of these acquisitions include the following: ● On October 3, 2011, the Company acquired substantially all of the assets of Magnum Products (Magnum), a supplier of generator powered light towers and mobile generators for a variety of industrial applications. The Magnum business is a strategic fit for the Company as it provides diversification through the introduction of new engine powered products, distribution channels and end markets. ● On December 8, 2012, the Company acquired the equity of Ottomotores UK and its affiliates (Ottomotores), with operations in Mexico City, Mexico and Curitiba, Brazil. Ottomotores is a leading manufacturer in the Mexican market for industrial diesel gensets and is a market participant throughout all of Latin America. ● On August 1, 2013, the Company acquired the equity of Tower Light SRL and its wholly-owned subsidiaries (Tower Light). Headquartered outside Milan, Italy, Tower Light is a leading developer and supplier of mobile light towers throughout Europe, the Middle East, Africa and Asia Pacific. ● On November 1, 2013, the Company purchased the assets of Baldor Electric Company’s generator division (Baldor Generators). Baldor Generators offers a complete line of power generation equipment throughout North America with power output up to 2.5MW, which expands the Company’s commercial and industrial product lines. ● On September 2, 2014, the Company acquired the equity of Pramac America LLC (Powermate), resulting in the ownership of the Powermate trade name and the right to license the DeWalt brand name for certain residential engine powered tools. This acquisition expands Generac’s residential product portfolio in the portable generator category. ● On October 1, 2014, the Company acquired MAC, Inc. (MAC). MAC is a leading manufacturer of premium-grade commercial and industrial mobile heaters for the United States and Canadian markets. The acquisition expands the Company’s portfolio of mobile power products and provides increased access to the oil & gas market. ● On August 1, 2015, the Company acquired Country Home Products and its subsidiaries (CHP). CHP is a leading manufacturer of high-quality, innovative, professional-grade engine powered equipment used in a wide variety of property maintenance applications, which are primarily sold in North America under the DR® Power Equipment brand. The acquisition provides an expanded product lineup and additional scale to the Company’s residential engine powered products. ● On March 1, 2016, the Company acquired a majority ownership interest in PR Industrial S.r.l and its subsidiaries (Pramac). Headquartered in Siena, Italy, Pramac is a leading global manufacturer of stationary, mobile and portable generators primarily sold under the Pramac® brand. Pramac products are sold in over 150 countries through a broad distribution network. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in conformity with U.S. generally accepted accounting principles (U.S. GAAP). All intercompany amounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of March 31, 2016, the condensed consolidated statements of comprehensive income for the three months ended March 31, 2016 and 2015, and the condensed consolidated statements of cash flows for the three months ended March 31, 2016 and 2015 have been prepared by the Company and have not been audited. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for the fair presentation of the financial position, results of operation and cash flows, have been made. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosure normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. New Accounting Standards In May 2014, the Financial Accounting Standards Board ( FASB) issued Accounting Standards Update ( ASU) 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs In November 2015, the FASB issued ASU 2015-17, I ncome Taxes: Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting There are several other new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe any of these other accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.

Note 2 - Acquisitions

Note 2 - Acquisitions	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Business Combination Disclosure [Text Block]	2. Acquisitions Acquisition of Pramac On March 1, 2016, a subsidiary of the Company acquired a 65% ownership interest in Pramac for a purchase price, net of cash acquired, of $61,280. Headquartered in Siena, Italy, Pramac is a leading global manufacturer of stationary, mobile and portable generators primarily sold under the Pramac® brand. Pramac products are sold in over 150 countries through a broad distribution network. The acquisition purchase price was funded solely through cash on hand. The 35% noncontrolling interest in Pramac had an acquisition date fair value of $34,253, and was recorded as a redeemable noncontrolling interest in the March 31, 2016 condensed consolidated balance sheet, as the noncontrolling interest party has within its control the right to require the Company to redeem its interest in Pramac. The Company recorded a preliminary purchase price allocation during the first quarter of 2016 based upon its estimates of the fair value of the acquired assets and assumed liabilities. The preliminary purchase price allocation was as follows: March 1, 2016 Accounts receivable, net $ 56,756 Inventories 38,902 Property and equipment, net 11,425 Intangible assets 35,884 Goodwill 53,724 Other assets 4,829 Total assets acquired 201,520 Short-term borrowings 21,104 Accounts payable 46,392 Long-term debt and capital lease obligations (including current portion) 19,244 Other liabilities 19,194 Redeemable noncontrolling interest 34,253 Noncontrolling interest 53 Net assets acquired $ 61,280 The goodwill ascribed to this acquisition is not deductible for tax purposes. The accompanying condensed consolidated financial statements include the results of Pramac from the date of acquisition through March 31, 2016. Acquisition of CHP On August 1, 2015, a subsidiary of the Company acquired CHP for a purchase price, net of cash acquired, of $74,570. Headquartered in Vergennes, Vermont, CHP is a leading manufacturer of high-quality, innovative, professional-grade engine powered equipment used in a wide variety of property maintenance applications, with sales primarily in North America. The acquisition purchase price was funded solely through cash on hand. The Company recorded a preliminary purchase price allocation during the third quarter of 2015 based upon its estimates of the fair value of the acquired assets and assumed liabilities. As a result, the Company recorded approximately $81,726 of intangible assets, including approximately $30,076 of goodwill, as of the acquisition date. The purchase price allocation was finalized in the fourth quarter of 2015, resulting in a $6,552 decrease to total intangible assets, including an increase of $6,208 in goodwill. The goodwill ascribed to this acquisition is not deductible for tax purposes. In addition, the Company assumed $12,000 of CHP’s debt in conjunction with this acquisition. The accompanying condensed consolidated financial statements include the results of CHP from the date of acquisition through March 31, 2016. The following unaudited pro forma information of the Company gives effect to these acquisitions as though the transactions had occurred on January 1, 2015. Consolidated net sales on a pro forma basis for the three month periods ended March 31, 2016 and 2015 were $315,882 and $374,511, respectively. The pro forma impact of these acquisitions on net income and earnings per share is not significant due to amortization related to acquired intangible assets and the fair value step-up of inventory in purchase accounting. This unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actuallywould have been achieved had the acquisitions been consummated on January 1, 2015.

Note 3 - Derivative Instruments

Note 3 - Derivative Instruments and Hedging Activities	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	3 . Derivative Instruments and Hedging Activities The Company records all derivatives in accordance with Accounting Standards Codification (ASC) 815, Derivatives and Hedging Commodities The Company is exposed to significant price fluctuations in commodities it uses as raw materials, and periodically utilizes commodity derivatives to mitigate the impact of these potential price fluctuations on its financial results and its economic well-being. These derivatives typically have maturities of less than eighteen months. At March 31, 2016, December 31, 2015 and March 31, 2015, the Company had zero, one and three commodity contracts outstanding, respectively, covering the purchases of copper. Because these contracts do not qualify for hedge accounting, the related gains and losses are recorded in cost of goods sold in the Company’s condensed consolidated statements of comprehensive income. Net losses recognized for the three months ended March 31, 2016 and 2015 were $6 and $726, respectively. Foreign Currencies The Company is exposed to foreign currency exchange risk as a result of transactions denominated in other currencies. The Company periodically utilizes foreign currency forward purchase and sales contracts to manage the volatility associated with certain foreign currency purchases in the normal course of business. Contracts typically have maturities of twelve months or less. As of March 31, 2016, December 31, 2015 and March 31, 2015, the Company had nine, six and four foreign currency contracts outstanding, respectively. Because these contracts do not qualify for hedge accounting, the related gains and losses are recorded in cost of goods sold in the Company’s condensed consolidated statements of comprehensive income. Net losses recognized for the three months ended March 31, 2016 and 2015 were $179 and $321, respectively. Interest Rate Swaps On October 23, 2013, the Company entered into two interest rate swap agreements, and on May 19, 2014, the Company entered into an additional interest rate swap agreement. The Company formally documented all relationships between interest rate hedging instruments and the related hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. These interest rate swap agreements qualify as cash flow hedges, and accordingly, the effective portions of the gains or losses are reported as a component of accumulated other comprehensive loss (AOCL). The cash flows of the swaps are recognized as adjustments to interest expense each period. The ineffective portions of the derivatives’ changes in fair value, if any, are immediately recognized in earnings. Fair Value The following table presents the fair value of all of the Company’s derivatives: March 31 , 6 December 31, 5 Commodity contracts $ 5 $ (400 ) Foreign currency contracts (177 ) (171 ) Interest rate swaps (4,514 ) (2,618 ) The fair value of the commodity and foreign currency contracts are included in other accrued liabilities, and the fair value of the interest rate swaps is included in other long-term liabilities in the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015. Excluding the impact of credit risk, the fair value of the derivative contracts as of March 31, 2016 and December 31, 2015 is a liability of $4,788 and $3,248, respectively, which represents the amount the Company would need to pay to exit the agreements on those dates. The amount of losses recognized in AOCL in the condensed consolidated balance sheets on the effective portion of interest rate swaps designated as hedging instruments for the three months ended March 31, 2016 and 2015 were $1,154 and $1,272, respectively. The amount of losses recognized in cost of goods sold in the condensed consolidated statements of comprehensive income for commodity and foreign currency contracts not designated as hedging instruments for the three months ended March 31, 2016 and 2015 were $185 and $1,047, respectively.

Note 4 - Fair Value Measurement

Note 4 - Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Fair Value Disclosures [Text Block]	4 . Fair Value Measurements ASC 820-10, Fair Value Measurement The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and ABL facility borrowings), excluding Term Loan borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of Term Loan borrowings, which have an aggregate carrying value of $925,369, was approximately $920,742 (Level 2) at March 31, 2016, as calculated based on independent valuations whose inputs and significant value drivers are observable. For the fair value of the assets and liabilities measured on a recurring basis, see the fair value table in Note 3, “Derivative Instruments and Hedging Activities,” to the condensed consolidated financial statements. The fair value of all derivative contracts is classified as Level 2. The valuation techniques used to measure the fair value of derivative contracts, all of which have counterparties with high credit ratings, were based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. The fair value of derivative contracts above considers the Company’s credit risk in accordance with ASC 820-10.

Note 5 - Accumulated Other Comp

Note 5 - Accumulated Other Comprehensive Loss	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	5 . Accumulated Other Comprehensive Loss The following presents a tabular disclosure of changes in AOCL during the three months ended March 31, 2016 and 2015, net of tax: Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Loss on Cash Flow Hedges Total Beginning Balance – January 1, 2016 $ (9,502 ) $ (11,362 ) $ (1,611 ) $ (22,475 ) Other comprehensive income (loss) before reclassifications 2,400 - (1,154 ) (1) 1,246 Amounts reclassified from AOCL - - - - Net current-period other comprehensive income (loss) 2,400 - (1,154 ) 1,246 Ending Balance – March 31, 2016 $ (7,102 ) $ (11,362 ) $ (2,765 ) $ (21,229 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Loss on Cash Flow Hedges Total Beginning Balance – January 1, 2015 $ (1,878 ) $ (13,243 ) $ (646 ) $ (15,767 ) Other comprehensive loss before reclassifications (5,546 ) - (1,272 ) (2) (6,818 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive loss (5,546 ) - (1,272 ) (6,818 ) Ending Balance – March 31, 2015 $ (7,424 ) $ (13,243 ) $ (1,918 ) $ (22,585 ) (1) Represents unrealized losses of $(1,896), net of tax benefit of $742 for the three months ended March 31, 2016. (2) Represents unrealized losses of $(2,074), net of tax benefit of $802 for the three months ended March 31, 2015.

Note 6 - Segment Reporting

Note 6 - Segment Reporting	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	6 . Segment Reporting The Company has multiple operating segments, which it aggregates into a single reportable segment, based on materially similar economic characteristics, products, production processes, classes of customers and distribution methods. The single reportable segment is the design and manufacture of a wide range of engine powered products. The Company’s sales in the United States represented approximately 83% and 86% of total sales for the three months ended March 31, 2016 and 2015, respectively. Approximately 85% and 93% of the Company’s identifiable long-lived assets are located in the United States at March 31, 2016 and December 31, 2015, respectively. The Company's product offerings consist primarily of power products with a range of power output geared for varying end customer uses. Residential products and commercial & industrial products are each a similar class of products based on similar power output and end customer usage. The breakout of net sales between residential, commercial & industrial, and other products is as follows: Three Months Ended March 31, 2016 2015 Residential products $ 158,980 $ 156,835 Commercial & industrial products 102,991 133,763 Other 24,564 21,220 Total $ 286,535 $ 311,818

Note 7 - Balance Sheet Details

Note 7 - Balance Sheet Details	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	7 . Balance Sheet Details Inventories consist of the following: March 31, 2016 December 31, 2015 Raw material $ 223,346 $ 188,354 Work-in-process 5,836 2,856 Finished goods 159,112 144,747 Reserves for excess and obsolete (13,585 ) (10,582 ) Total $ 374,709 $ 325,375 Property and equipment consists of the following: March 31, 2016 December 31, 2015 Land and improvements $ 10,812 $ 8,553 Buildings and improvements 110,390 104,774 Machinery and equipment 76,431 72,280 Dies and tools 20,603 20,066 Vehicles 1,448 1,244 Office equipment and systems 57,118 29,395 Leasehold improvements 4,005 3,338 Construction in progress 7,322 30,482 Gross property and equipment 288,129 270,132 Accumulated depreciation (90,506 ) (85,919 ) Total $ 197,623 $ 184,213

Note 8 - Product Warranty Oblig

Note 8 - Product Warranty Obligations	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	8 . Product Warranty Obligations The Company records a liability for product warranty obligations at the time of sale to a customer based upon historical warranty experience. The Company also records a liability for specific warranty matters when they become known and are reasonably estimable. Additionally, the Company sells extended warranty coverage for certain products. The sales of extended warranties are recorded as deferred revenue, which is recognized over the life of the contract. The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to extended warranty coverage: Three Months E nded March 31 , 201 6 201 5 Balance at beginning of period $ 30,197 $ 30,909 Product warranty reserve assumed in acquisition 840 - Payments (3,652 ) (5,433 ) Provision for warranties issued 3,482 4,549 Changes in estimates for pre-existing warranties 1,037 (748 ) Balance at end of period $ 31,904 $ 29,277 The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage: Three Months E nded March 31 , 201 6 201 5 Balance at beginning of period $ 28,961 $ 27,193 Deferred revenue on extended warranty contracts sold 1,144 1,380 Amortization of deferred revenue on extended warranty contracts (1,275 ) (1,042 ) Balance at end of period $ 28,830 $ 27,531 Product warranty obligations and extended warranty related deferred revenues are included in the condensed consolidated balance sheets as follows: March 31 , December 31, 201 6 201 5 Product warranty liability Current portion - other accrued liabilities $ 23,433 $ 21,726 Long-term portion - other long-term liabilities 8,471 8,471 Total $ 31,904 $ 30,197 Deferred revenue related to extended warranty Current portion - other accrued liabilities $ 5,189 $ 6,026 Long-term portion - other long-term liabilities 23,641 22,935 Total $ 28,830 $ 28,961

Note 9 - Credit Agreements

Note 9 - Credit Agreements	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	9 . Credit Agreements Short-term borrowings are included in the condensed consolidated balance sheets as follows: March 31 , December 31, 201 6 201 5 ABL facility $ - $ - Other lines of credit 34,055 8,594 Total $ 34,055 $ 8,594 Long-term borrowings are included in the condensed consolidated balance sheets as follows: March 31 , December 31, 201 6 201 5 Term loan $ 954,000 $ 954,000 Original issue discount and deferred financing costs (28,848 ) (29,905 ) ABL facility 100,000 100,000 Capital lease obligations 5,402 1,694 Other 27,567 12,000 Total 1,058,121 1,037,789 Less: current portion of debt 10,405 500 Less: current portion of capital lease obligation 570 157 Total $ 1,047,146 $ 1,037,132 The Company’s credit agreements provide for a $1,200,000 term loan B credit facility (Term Loan) and include a $300,000 uncommitted incremental term loan facility. The Term Loan matures on May 31, 2020. The Term Loan is guaranteed by all of the Company’s wholly-owned domestic restricted subsidiaries, and is secured by associated collateral agreements which pledge a first priority lien on virtually all of the Company’s assets, including fixed assets and intangibles, other than all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, which are secured by a second priority lien. The Term Loan initially bore interest at rates based upon either a base rate plus an applicable margin of 1.75% or adjusted LIBOR rate plus an applicable margin of 2.75%, subject to a LIBOR floor of 0.75%. Beginning in the second quarter of 2014, and measured each quarterly period thereafter, the applicable margin related to base rate loans is reduced to 1.50% and the applicable margin related to LIBOR rate loans is reduced to 2.50%, in each case, if the Borrower’s net debt leverage ratio, as defined in the Term Loan, falls below 3.00 to 1.00 for that measurement period. The Company’s net debt leverage ratio as of March 31, 2016 was above 3.00 to 1.00. As of March 31, 2016, the Company is in compliance with all covenants of the Term Loan. There are no financial maintenance covenants on the Term Loan. The Company’s credit agreements also provided for a $150,000 senior secured ABL revolving credit facility (ABL Facility). The maturity date of the ABL Facility was May 31, 2018. Borrowings under the ABL Facility are guaranteed by all of the Company’s wholly-owned domestic restricted subsidiaries, and are secured by associated collateral agreements which pledge a first priority lien on all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, and a second priority lien on all other assets, including fixed assets and intangibles of the Company and certain domestic subsidiaries. ABL Facility borrowings initially bore interest at rates based upon either a base rate plus an applicable margin of 1.00% or adjusted LIBOR rate plus an applicable margin of 2.00%, in each case, subject to adjustments based upon average availability under the ABL Facility. On May 29, 2015, the Company amended its ABL Facility. The amendment (i) increased the ABL Facility from $150,000 to $250,000 (Amended ABL Facility), (ii) extended the maturity date from May 31, 2018 to May 29, 2020, (iii) increased the uncommitted incremental facility from $50,000 to $100,000, (iv) reduced the interest rate spread by 50 basis points and (v) reduced the unused line fee by 12.5 basis points across all tiers. Additionally, the amendment relaxed certain restrictions on the Company’s ability to, among other things, (i) make additional investments and acquisitions (including foreign acquisitions), (ii) make restricted payments and (iii) incur additional secured and unsecured debt (including foreign subsidiary debt). On May 29, 2015, the Company borrowed $100,000 under the Amended ABL Facility, the proceeds of which were used as a voluntary prepayment towards the Term Loan. As of March 31, 2016, there was $100,000 outstanding under the Amended ABL Facility, leaving $148,500 of availability, net of outstanding letters of credit. On March 30, 2015, the Company made a voluntary prepayment of the Term Loan of $50,000, which was applied to the Excess Cash Flow payment requirement in the Term Loan. As a result of the prepayment, the Company wrote off $1,368 of original issue discount and capitalized debt issuance costs in the first quarter of 2015 as a loss on extinguishment of debt in the condensed consolidated statement of comprehensive income. As of March 31, 2016 and December 31, 2015, short-term borrowings consisted of borrowings by our foreign subsidiaries on local lines of credit, which totaled $34,055 and $8,594, respectively.

Note 10 - Earnings Per Share

Note 10 - Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	10 . 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 March 31, 2016 2015 Net income attributable to Generac Holdings Inc. (numerator) $ 10,208 $ 19,685 Weighted average shares (denominator) Basic 66,099,755 68,806,337 Dilutive effect of stock compensation awards (1) 500,285 1,282,598 Diluted 66,600,040 70,088,935 Net income attributable to Generac Holdings Inc. per share Basic $ 0.15 $ 0.29 Diluted $ 0.15 $ 0.28 (1) Excludes approximately 256,600 stock options and 3,400 shares of restricted stock for the three month period ended March 31, 2016, and 89,100 stock options and 200 shares of restricted stock for the three month period ended March 31, 2015, as the impact of such awards was anti-dilutive.

Note 11 - Income Taxes

Note 11 - Income Taxes	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	11 . Income Taxes The effective income tax rates for the three months ended March 31, 2016 and 2015 were 35.9%.

Note 12 - Commitments and Conti

Note 12 - Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	1 2 . Commitments and Contingencies The Company has an arrangement with a finance company to provide floor plan financing for selected dealers. The Company receives payment from the finance company after shipment of product to the dealer. The Company participates in the cost of dealer financing up to certain limits and has agreed to repurchase products repossessed by the finance company, but does not indemnify the finance company for any credit losses they incur. The amount financed by dealers which remained outstanding under this arrangement at March 31, 2016 and December 31, 2015 was approximately $30,900 and $32,400, respectively. In the normal course of business, the Company is named as a defendant in various lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may result from such lawsuits are not expected to have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Standards In May 2014, the Financial Accounting Standards Board ( FASB) issued Accounting Standards Update ( ASU) 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs In November 2015, the FASB issued ASU 2015-17, I ncome Taxes: Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting There are several other new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe any of these other accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.

Note 2 - Acquisitions (Tables)

Note 2 - Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	March 1, 2016 Accounts receivable, net $ 56,756 Inventories 38,902 Property and equipment, net 11,425 Intangible assets 35,884 Goodwill 53,724 Other assets 4,829 Total assets acquired 201,520 Short-term borrowings 21,104 Accounts payable 46,392 Long-term debt and capital lease obligations (including current portion) 19,244 Other liabilities 19,194 Redeemable noncontrolling interest 34,253 Noncontrolling interest 53 Net assets acquired $ 61,280

Note 3 - Derivative Instrumen20

Note 3 - Derivative Instruments and Hedging Activities (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule Of Derivative Assets (Liabilities) at Fair Value [Table Text Block]	March 31 , 6 December 31, 5 Commodity contracts $ 5 $ (400 ) Foreign currency contracts (177 ) (171 ) Interest rate swaps (4,514 ) (2,618 )

Note 5 - Accumulated Other Co21

Note 5 - Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Loss on Cash Flow Hedges Total Beginning Balance – January 1, 2016 $ (9,502 ) $ (11,362 ) $ (1,611 ) $ (22,475 ) Other comprehensive income (loss) before reclassifications 2,400 - (1,154 ) (1) 1,246 Amounts reclassified from AOCL - - - - Net current-period other comprehensive income (loss) 2,400 - (1,154 ) 1,246 Ending Balance – March 31, 2016 $ (7,102 ) $ (11,362 ) $ (2,765 ) $ (21,229 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Loss on Cash Flow Hedges Total Beginning Balance – January 1, 2015 $ (1,878 ) $ (13,243 ) $ (646 ) $ (15,767 ) Other comprehensive loss before reclassifications (5,546 ) - (1,272 ) (2) (6,818 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive loss (5,546 ) - (1,272 ) (6,818 ) Ending Balance – March 31, 2015 $ (7,424 ) $ (13,243 ) $ (1,918 ) $ (22,585 )

Note 6 - Segment Reporting (Tab

Note 6 - Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Revenue from External Customers by Products and Services [Table Text Block]	Three Months Ended March 31, 2016 2015 Residential products $ 158,980 $ 156,835 Commercial & industrial products 102,991 133,763 Other 24,564 21,220 Total $ 286,535 $ 311,818

Note 7 - Balance Sheet Details

Note 7 - Balance Sheet Details (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 31, 2016 December 31, 2015 Raw material $ 223,346 $ 188,354 Work-in-process 5,836 2,856 Finished goods 159,112 144,747 Reserves for excess and obsolete (13,585 ) (10,582 ) Total $ 374,709 $ 325,375
Property, Plant and Equipment [Table Text Block]	March 31, 2016 December 31, 2015 Land and improvements $ 10,812 $ 8,553 Buildings and improvements 110,390 104,774 Machinery and equipment 76,431 72,280 Dies and tools 20,603 20,066 Vehicles 1,448 1,244 Office equipment and systems 57,118 29,395 Leasehold improvements 4,005 3,338 Construction in progress 7,322 30,482 Gross property and equipment 288,129 270,132 Accumulated depreciation (90,506 ) (85,919 ) Total $ 197,623 $ 184,213

Note 8 - Product Warranty Obl24

Note 8 - Product Warranty Obligations (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Three Months E nded March 31 , 201 6 201 5 Balance at beginning of period $ 30,197 $ 30,909 Product warranty reserve assumed in acquisition 840 - Payments (3,652 ) (5,433 ) Provision for warranties issued 3,482 4,549 Changes in estimates for pre-existing warranties 1,037 (748 ) Balance at end of period $ 31,904 $ 29,277 Three Months E nded March 31 , 201 6 201 5 Balance at beginning of period $ 28,961 $ 27,193 Deferred revenue on extended warranty contracts sold 1,144 1,380 Amortization of deferred revenue on extended warranty contracts (1,275 ) (1,042 ) Balance at end of period $ 28,830 $ 27,531
Product Warranty Obligations Included In Consolidated Balance Sheet [Table Text Block]	March 31 , December 31, 201 6 201 5 Product warranty liability Current portion - other accrued liabilities $ 23,433 $ 21,726 Long-term portion - other long-term liabilities 8,471 8,471 Total $ 31,904 $ 30,197 Deferred revenue related to extended warranty Current portion - other accrued liabilities $ 5,189 $ 6,026 Long-term portion - other long-term liabilities 23,641 22,935 Total $ 28,830 $ 28,961

Note 9 - Credit Agreements (Tab

Note 9 - Credit Agreements (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Short-term Debt [Table Text Block]	March 31 , December 31, 201 6 201 5 ABL facility $ - $ - Other lines of credit 34,055 8,594 Total $ 34,055 $ 8,594
Schedule of Long-term Debt Instruments [Table Text Block]	March 31 , December 31, 201 6 201 5 Term loan $ 954,000 $ 954,000 Original issue discount and deferred financing costs (28,848 ) (29,905 ) ABL facility 100,000 100,000 Capital lease obligations 5,402 1,694 Other 27,567 12,000 Total 1,058,121 1,037,789 Less: current portion of debt 10,405 500 Less: current portion of capital lease obligation 570 157 Total $ 1,047,146 $ 1,037,132

Note 10 - Earnings Per Share (T

Note 10 - Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31, 2016 2015 Net income attributable to Generac Holdings Inc. (numerator) $ 10,208 $ 19,685 Weighted average shares (denominator) Basic 66,099,755 68,806,337 Dilutive effect of stock compensation awards (1) 500,285 1,282,598 Diluted 66,600,040 70,088,935 Net income attributable to Generac Holdings Inc. per share Basic $ 0.15 $ 0.29 Diluted $ 0.15 $ 0.28

Note 1 - Description of Busin27

Note 1 - Description of Business and Basis of Presentation (Details Textual) $ in Thousands	Mar. 01, 2016	Mar. 31, 2016USD ($)
Decrease in Long-term Borrowings [Member] | December 31, 2015 [Member]
Prior Period Reclassification Adjustment		$ 12,965
Decrease in Deferred Financing Costs [Member] | December 31, 2015 [Member]
Prior Period Reclassification Adjustment		12,965
Decrease in Deferred Income Taxes Within Current Assets [Member] | December 31, 2015 [Member]
Prior Period Reclassification Adjustment		29,355
Increase in Deferred Income Taxes within Noncurrent Assets [Member] | December 31, 2015 [Member]
Prior Period Reclassification Adjustment		28,139
Decrease in Deferred Income Taxes within Noncurrent Liabilities [Member] | December 31, 2015 [Member]
Prior Period Reclassification Adjustment		$ (1,216)
Number of Countries Where Product is Sold by Subsidiary	150

Note 2 - Acquisitions (Details

Note 2 - Acquisitions (Details Textual) $ in Thousands	Mar. 01, 2016USD ($)	Aug. 01, 2015USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Mar. 31, 2015USD ($)
Pramac [Member]
Business Acquisition, Percentage of Voting Interests Acquired	65.00%
Payments to Acquire Businesses, Net of Cash Acquired	$ 61,280
Number of Countries Where Product is Sold by Subsidiary	150
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	35.00%
Redeemable Noncontrolling Interest, Equity, Fair Value	$ 34,253
Goodwill	$ 53,724
CHP [Member]
Payments to Acquire Businesses, Net of Cash Acquired		$ 74,570
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill		81,726
Goodwill		$ 30,076
Increase (Decrease) in Intangible Assets, Non-current				$ (6,552)
Goodwill, Period Increase (Decrease)				6,208
Noncash or Part Noncash Acquisition, Debt Assumed				12,000
Payments to Acquire Businesses, Net of Cash Acquired			$ 61,280		$ (374)
Number of Countries Where Product is Sold by Subsidiary	150
Goodwill			723,443	$ 669,719
Business Acquisition, Pro Forma Revenue			$ 315,882		$ 374,511

Note 2 - Preliminary Price Allo

Note 2 - Preliminary Price Allocation (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 01, 2016	Dec. 31, 2015
Pramac [Member]
Accounts receivable, net		$ 56,756
Inventories		38,902
Property and equipment, net		11,425
Intangible assets		35,884
Goodwill		53,724
Other assets		4,829
Total assets acquired		201,520
Short-term borrowings		21,104
Accounts payable		46,392
Long-term debt and capital lease obligations (including current portion)		19,244
Other liabilities		19,194
Redeemable noncontrolling interest		34,253
Noncontrolling interest		53
Net assets acquired		$ 61,280
Goodwill	$ 723,443		$ 669,719

Note 3 - Derivative Instrumen30

Note 3 - Derivative Instruments and Hedging Activities (Details Textual) $ in Thousands	Oct. 23, 2013	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Commodity Contract [Member] | Maximum [Member]
Derivative, Remaining Maturity		1 year 180 days
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of Sales [Member]
Derivative, Gain (Loss) on Derivative, Net		$ (6)	$ (726)
Commodity Contract [Member]
Derivative, Number of Instruments Held		0	3	1
Foreign Exchange Contract [Member] | Maximum [Member]
Derivative, Remaining Maturity		1 year
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of Sales [Member]
Derivative, Gain (Loss) on Derivative, Net		$ (179)	$ (321)
Foreign Exchange Contract [Member]
Derivative, Number of Instruments Held		9	4	6
Interest Rate Swap [Member]
Number of New Contracts Entered	2
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		$ (1,154)	$ (1,272)
Commodity and Foreign Currency Contracts [Member]
Derivative Assets (Liabilities), Net Fair Value of Derivative Contracts, Excluding Impact of Credit Risk		(4,788)		$ (3,248)
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net		$ (185)	$ (1,047)

Note 3 - Fair Value of Derivati

Note 3 - Fair Value of Derivatives (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commodity Contract [Member]
Fair Value of Derivates	$ 5	$ (400)
Foreign Exchange Contract [Member]
Fair Value of Derivates	(177)	(171)
Interest Rate Swap [Member]
Fair Value of Derivates	$ (4,514)	$ (2,618)

Note 4 - Fair Value Measureme32

Note 4 - Fair Value Measurements (Details Textual) - Fair Value, Inputs, Level 2 [Member] $ in Thousands	Mar. 31, 2016USD ($)
Long-term Debt	$ 925,369
Long-term Debt, Fair Value	$ 920,742

Note 5 - Accumulated Other Co33

Note 5 - Accumulated Other Comprehensive Loss (Details Textual) - Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
OCI, before Reclassifications, before Tax, Attributable to Parent	$ (1,896)	$ (2,074)
Other Comprehensive Income (Loss) before Reclassifications, Tax	$ (742)	$ (802)

Note 5 - Disclosure of Changes

Note 5 - Disclosure of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016		Mar. 31, 2015
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Beginning Balance	$ (9,502)		$ (1,878)
Other comprehensive income (loss) before reclassifications	2,400		(5,546)
Net current-period other comprehensive income (loss)	2,400		(5,546)
Ending Balance	(7,102)		(7,424)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Beginning Balance	(11,362)		(13,243)
Ending Balance	(11,362)		(13,243)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Beginning Balance	(1,611)		(646)
Other comprehensive income (loss) before reclassifications	(1,154)	[1]	(1,272)	[2]
Net current-period other comprehensive income (loss)	(1,154)		(1,272)
Ending Balance	(2,765)		(1,918)
Beginning Balance	(22,475)		(15,767)
Other comprehensive income (loss) before reclassifications	1,246		(6,818)
Net current-period other comprehensive income (loss)	1,246		(6,818)
Ending Balance	$ (21,229)		$ (22,585)
[1]	Represents unrealized losses of $(1,896), net of tax benefit of $742 for the three months ended March 31, 2016.
[2]	Represents unrealized losses of $(2,074), net of tax benefit of $802 for the three months ended March 31, 2015.

Note 6 - Segment Reporting (Det

Note 6 - Segment Reporting (Details Textual) - Geographic Concentration Risk [Member] - UNITED STATES	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Sales Revenue, Net [Member]
Concentration Risk, Percentage	83.00%	86.00%
Net Assets, Geographic Area [Member]
Concentration Risk, Percentage	85.00%	93.00%

Note 6 - Net Sales by Segment (

Note 6 - Net Sales by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Residential Power Products [Member]
Net sales	$ 158,980	$ 156,835
Commercial and Industrial Power Products [Member]
Net sales	102,991	133,763
Other Products and Services [Member]
Net sales	24,564	21,220
Net sales	$ 286,535	$ 311,818

Note 7 - Inventories (Details)

Note 7 - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Raw material	$ 223,346	$ 188,354
Work-in-process	5,836	2,856
Finished goods	159,112	144,747
Reserves for excess and obsolete	(13,585)	(10,582)
Total	$ 374,709	$ 325,375

Note 7 - Property and Equipment

Note 7 - Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Land and Land Improvements [Member]
Property and equipment, gross	$ 10,812	$ 8,553
Building and Building Improvements [Member]
Property and equipment, gross	110,390	104,774
Machinery and Equipment [Member]
Property and equipment, gross	76,431	72,280
Dies and Tools [Member]
Property and equipment, gross	20,603	20,066
Vehicles [Member]
Property and equipment, gross	1,448	1,244
Office Equipment [Member]
Property and equipment, gross	57,118	29,395
Leasehold Improvements [Member]
Property and equipment, gross	4,005	3,338
Construction in Progress [Member]
Property and equipment, gross	7,322	30,482
Property and equipment, gross	288,129	270,132
Accumulated depreciation	(90,506)	(85,919)
Total	$ 197,623	$ 184,213

Note 8 - Reconciliation of Prod

Note 8 - Reconciliation of Product Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Balance at beginning of period	$ 30,197	$ 30,909
Product warranty reserve assumed in acquisition	840
Payments	(3,652)	$ (5,433)
Provision for warranties issued	3,482	4,549
Changes in estimates for pre-existing warranties	1,037	(748)
Balance at end of period	31,904	29,277
Balance at beginning of period	28,961	27,193
Deferred revenue on extended warranty contracts sold	1,144	1,380
Amortization of deferred revenue on extended warranty contracts	(1,275)	(1,042)
Balance at end of period	$ 28,830	$ 27,531

Note 8 - Deferred Product Oblig

Note 8 - Deferred Product Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Current portion - other accrued liabilities	$ 23,433	$ 21,726
Long-term portion - other long-term liabilities	8,471	8,471
Total	31,904	30,197	$ 29,277	$ 30,909
Current portion - other accrued liabilities	5,189	6,026
Long-term portion - other long-term liabilities	23,641	22,935
Total	$ 28,830	$ 28,961	$ 27,531	$ 27,193

Note 9 - Credit Agreements (Det

Note 9 - Credit Agreements (Details Textual) $ in Thousands	May. 29, 2015USD ($)	Mar. 30, 2015USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	May. 31, 2013USD ($)
Term Loan [Member] | Base Rate [Member] | Net Debt Leverage Ratio Threshold [Member]
Debt Instrument, Basis Spread on Variable Rate			1.50%
Term Loan [Member] | Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate			1.75%
Term Loan [Member] | Adjusted LIBOR Rate [Member] | Net Debt Leverage Ratio Threshold [Member]
Debt Instrument, Basis Spread on Variable Rate			2.50%
Term Loan [Member] | Adjusted LIBOR Rate [Member]
Debt Instrument, Basis Spread on Variable Rate			2.75%
Term Loan [Member] | LIBOR Floor Rate [Member]
Debt Instrument, Basis Spread on Variable Rate			0.75%
Term Loan [Member]
Line of Credit Facility, Maximum Borrowing Capacity					$ 1,200,000
Uncommitted Incremental Term Loan Facility					300,000
Net Debt Leverage Ratio Threshold			3
Net Debt Leverage Ratio Achieved			3
Repayments of Long-term Debt		$ 50,000
Write off of Deferred Debt Issuance Cost		$ 1,368
Base Rate [Member] | ABL Revolving Credit Facility [Member]
Debt Instrument, Basis Spread on Variable Rate			1.00%
Adjusted LIBOR Rate [Member] | ABL Revolving Credit Facility [Member]
Debt Instrument, Basis Spread on Variable Rate			2.00%
ABL Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 150,000				$ 150,000
Uncommitted Incremental Term Loan Facility	50,000
Amended ABL Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	250,000
Uncommitted Incremental Term Loan Facility	$ 100,000
Debt Instrument, Basis Spread on Variable Rate	0.50%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.125%
Proceeds from Lines of Credit	$ 100,000
Long-term Line of Credit			$ 100,000
Line of Credit Facility, Remaining Borrowing Capacity			148,500
Short-term Debt			$ 34,055	$ 8,594

Note 9 - Short-term Borrowings

Note 9 - Short-term Borrowings (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
ABL Revolving Credit Facility [Member]
Short-term Debt	$ 0	$ 0
Other Lines of Credit [Member]
Short-term Debt	34,055,000	8,594,000
Short-term Debt	$ 34,055,000	$ 8,594,000

Note 9 - Long-term Borrowings (

Note 9 - Long-term Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Term loan	$ 954,000	$ 954,000
Original issue discount and deferred financing costs	(28,848)	(29,905)
ABL facility	100,000	100,000
Capital lease obligations	5,402	1,694
Other	27,567	12,000
Total	1,058,121	1,037,789
Less: current portion of debt	10,405	500
Less: current portion of capital lease obligation	570	157
Total	$ 1,047,146	$ 1,037,132

Note 10 - Earnings Per Share (D

Note 10 - Earnings Per Share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	256,600	89,100
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,400	200

Note 10 - Reconciliation of Bas

Note 10 - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Net income attributable to Generac Holdings Inc. (numerator)		$ 10,208	$ 19,685
Weighted average common shares outstanding - basic: (in shares)		66,099,755	68,806,337
Dilutive effect of stock compensation awards (in shares)	[1]	500,285	1,282,598
Weighted average common shares outstanding - diluted: (in shares)		66,600,040	70,088,935
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share)		$ 0.15	$ 0.29
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share)		$ 0.15	$ 0.28
[1]	Excludes approximately 256,600 stock options and 3,400 shares of restricted stock for the three month period ended March 31, 2016, and 89,100 stock options and 200 shares of restricted stock for the three month period ended March 31, 2015, as the impact of such awards was anti-dilutive.

Note 11 - Income Taxes (Details

Note 11 - Income Taxes (Details Textual)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Effective Income Tax Rate Reconciliation, Percent	35.90%	35.90%

Note 12 - Commitments and Con47

Note 12 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Amount Financed by Dealers	$ 30.9	$ 32.4