Business Description and Basis of Presentation [Text Block]

1.	Description of Business

Founded in

1959,

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 and industrial 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.

Over the years, the Company

has executed a number of acquisitions that support our strategic plan (refer to Item

in this Annual Report on Form

-K for discussion of our Powering Ahead strategic plan). A summary of these acquisitions include the following:

●

October

2011,

the Company acquired substantially all 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.

●

December

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.

●

August

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 and Africa.

●

November

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.

●

September

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.

●

October

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.

●

August

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.

●

March

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.

●

January

2017,

the Company acquired Motortech GmbH & affiliates (Motortech), headquartered in Celle, Germany. Motortech is a leading manufacturer

of gaseous-engine control systems and accessories, which are sold primarily to European gas-engine manufacturers and to aftermarket customers.

Note 2 - Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Significant Accounting Policies [Text Block]

2.	Significant Accounting Policies

Principles of Consolidation

The 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.

Cash

and Cash

Equivalents

The Company considers all highly liquid investments purchased with an original maturity of

three

months or less to be cash equivalents.

Concentration of Credit Risk

The Company maintains the majority of its

domestic cash in

one

commercial bank in multiple operating and investment accounts. Balances on deposit are insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits. Balances in excess of FDIC limits are uninsured.

One

customer accounted for

approximately

and

11%

of accounts receivable at

December

31,

2016

and

2015,

respectively.

one

customer accounted for greater than

7%,

and

8%,

of net sales during the years ended

December

31,

2016,

2015,

2014,

respectively.

Accounts Receivable

Receivables are recorded at their face value amount less an allowance for doubtful accounts. The Company estimates and records an allowance for doubtful accounts based on specific identification and historical experience. The Company writes off uncollectible accounts against the allowance for doubtful accounts after all collection efforts have been exhausted. Sales are generally made on an unsecured basis.

Inventories

Inventories are stated at the lower of cost or

market, with cost determined generally using the

first

-in,

first

-out method.

Property and Equipment

Property and equipment are recorded at cost and are being depreciated using the straight-line method over the estimated useful lives of the assets, which are summarized below (in years). Costs of leasehold improvements are amortized over the lesser of the term of the lease (including renewal option periods) or the estimated useful lives of the improvements.

Land improvements	15	–	20
Buildings and improvements	10	–	40
Machinery and equipment	3	–	10
Dies and tools	3	–	10
Vehicles	3	–	6
Office equipment and systems	3	–	15
Leasehold improvements	2	–	20

Total depreciation expense was

$21,465,

$16,742,

and

$13,706

for the years ended

December

31,

2016,

2015,

and

2014,

respectively.

Goodwill and Other Indefinite-Lived Intangible Assets

Goodwill represents the excess of the purchase price over fair value of identifiable net assets acquired from business acquisitions. Goodwill is not amortized, but is reviewed for impairment on an annual basis and between annual tests

if indicators of impairment are present. The Company evaluates goodwill for impairment annually as of

October

or more frequently when an event occurs or circumstances change that indicates the carrying value

may

not be recoverable. The Company has the option to assess goodwill for impairment by

first

performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then further goodwill impairment testing is not required to be performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is required to perform a

two

-step goodwill impairment test. In the

first

step, the fair value of the reporting unit is compared to its book value including goodwill. If the fair value of the reporting unit is in excess of its book value, the related goodwill is not impaired and no further analysis is necessary. If the fair value of the reporting unit is less than its book value, there is an indication of potential impairment and a

second

step is performed. When required, the

second

step of testing involves calculating the implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in the same manner as goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit determined in step

one

over the fair value of its net assets and identifiable intangible assets as if the reporting unit had been acquired. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For reporting units with a negative book value (i.e., excess of liabilities over assets), qualitative factors are evaluated to determine whether it is necessary to perform the

second

step of the goodwill impairment test.

The Company performed the required annual impairment tests for goodwill and other indefinite-lived intangible assets for the fiscal years

2016,

2015

and

2014,

and found

impairment following the

2016

and

2014

tests.

There were no reporting units with a carrying value at-risk of exceeding fair value as of the

October

31,

2016

impairment test date.

After performing the impairment tests for fiscal year

2015,

he Company determined that the fair value of the Ottomotores reporting unit was less than its carrying value, resulting in a non-cash goodwill impairment charge in the

fourth

quarter of

2015

$4,611

to write-down the balance of the Ottomotores goodwill. The decrease in fair value of the Ottomotores reporting unit was due to several factors in the

second

half of

2015:

the continued challenges of the Latin American economies, devaluation of the Peso against the U.S. Dollar, the slow development of Mexican energy reform as a result of decreasing oil prices; combining to cause

2015

results to fall short of prior expectations and future forecasts to decrease. The fair value was determined using a discounted cash flow analysis, which utilized key financial assumptions including the sales growth factors discussed above, a

terminal growth rate and a

15.7%

discount rate.

Other indefinite-lived intangible assets consist of

certain tradenames. The Company tests the carrying value of these tradenames by comparing the assets’ fair value to its carrying value. Fair value is measured using a relief-from-royalty approach, which assumes the fair value of the tradename is the discounted cash flows of the amount that would be paid had the Company not owned the tradename and instead licensed the tradename from another company. The Company conducts its annual impairment test for indefinite-lived intangible assets as of

October

of each year.

In the

fourth

quarter of

2015,

the Company

’s Board of Directors approved a plan to strategically transition and consolidate certain of the Company’s brands acquired in acquisitions over the past several years to the Generac® tradename. This brand strategy change resulted in a reclassification to a

two

year remaining useful life for the impacted tradenames, causing the fair value to be less than the carrying value using the relief-from-royalty approach in a discounted cash flow analysis. As such, a

$36,076

non-cash impairment charge was recorded to write-down the impacted tradenames to net realizable value.

Other than the impairment charges discussed above, the Company found no other impairment when performing the required annual

impairment tests for goodwill and other indefinite-lived intangible assets for fiscal year

2015.

There can be no assurance that future impairment tests will not result in a charge to earnings.

Impairment of

Long-Lived Assets

The Company periodically evaluates the carrying value of long-lived asset

s (excluding goodwill and indefinite-lived tradenames). Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount

may

not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of an asset, a loss is recognized for the difference between the fair value and carrying value of the asset.

Debt Issuance Costs

Debt discounts and d

irect and incremental costs incurred in connection with the issuance of long-term debt are deferred and recorded as a reduction of outstanding debt and amortized to interest expense using the effective interest method over the terms of the related credit agreements. Approximately

$3,939,

$5,429,

and

$6,615

of deferred financing costs and original issue discount were amortized to interest expense during fiscal years

2016,

2015

and

2014,

respectively. Excluding the impact of any future long-term debt issuances or prepayments, estimated amortization expense for the next

five

years is as follows:

2017

$2,516;

2018

$4,314;

2019

$4,466;

2020

$4,420;

2021

$4,419.

Income Taxes

The Company is

a C Corporation and therefore accounts for income taxes pursuant to the liability method. Accordingly, the current or deferred tax consequences of a transaction are measured by applying the provision of enacted tax laws to determine the amount of taxes payable currently or in future years. Deferred income taxes are provided for temporary differences between the income tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the years in which those temporary differences become deductible. The Company considers taxable income in prior carryback years, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies, as appropriate, in making this assessment.

Revenue Recognition

Sales, net of estimated returns and allowances, are recognized upon shipment of product to the customer, which is generally when title passes, the Company has no further obligations, and the customer is required to pay subject to agreed upon payment terms. The Company, at the request of certain customers, will warehouse inventory billed to the customer but not delivered. Unless all revenue recognition criteria have been met, the Company does not recognize revenue on these transactions until the customers take possession of the product. In these cases, the funds collected on product warehoused for these customers are recorded as a customer advance until the customer takes possession of the product and the Company’s obligation to deliver the goods is completed. Customer advances are included in accrued liabilities in the consolidated balance sheets.

The Company provides for certain estimated sales

programs, discounts and incentive expenses which are recognized as a reduction of sales.

Shipping and Handling Costs

Shipping and handling costs billed to customers are included in net sales, and the related costs are included in cost of goods sold in the consolidated statements of comprehensive income.

Advertising and Co-Op Advertising

Expenditures for advertising, included in selling and service expenses in the consolidated statements of comprehensive income, are expensed as incurred. Total

expenditures for advertising were

$45,488,

$39,258,

and

$32,352

for the years ended

December

31,

2016,

2015,

and

2014,

respectively.

Research and Development

The Company expenses research and development costs as incurred. Total expenditures incurred for research and development

were

$37,229,

$32,922,

and

$31,494

for the years ended

December

31,

2016,

2015

and

2014,

respectively.

Foreign Currency Translation and Transactions

Balance sheet amounts for non-U.S. Dollar functional currency businesses

are translated into U.S. Dollars at the rates of exchange in effect at fiscal year-end. Income and expenses incurred in a foreign currency are translated at the average rates of exchange in effect during the year. The related translation adjustments are made directly to accumulated other comprehensive loss, a component of stockholders’ equity, in the consolidated balance sheets. Gains and losses from foreign currency transactions are recognized as incurred in the consolidated statements of comprehensive income.

Fair Value of Financial Instruments

The Financial Accounting Standards Board (FASB) Accounting Standards Update (

ASC)

820

10,

Fair Value Measurement

defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure for each major asset and liability category measured at fair value on either a recurring basis or nonrecurring basis. ASC

820

clarifies that fair value is an exit price, representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the pronouncement establishes a

three

-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level

observable inputs such as quoted prices in active markets; (Level

inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level

unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

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

$903,673,

was approximately

$904,780

(Level

December

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

“Derivative Instruments and Hedging Activities,” to the consolidated financial statements. The fair value of all derivative contracts is classified as Level

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 considers the Company’s credit risk in accordance with ASC

820

10.

Use of Estimates

The preparation of the 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Derivative Instruments and Hedging Activities

The Company records

all derivatives in accordance with ASC

815,

Derivatives and Hedging

, which requires derivative instruments be reported on the consolidated balance sheets at fair value and establishes criteria for designation and effectiveness of hedging relationships. The Company is exposed to market risk such as changes in commodity prices, foreign currencies and interest rates. The Company does not hold or issue derivative financial instruments for trading purposes.

Stock-Based Compensation

Stock-based compensation expense, including stock options and restricted stock awards, is generally recognized on a straight-line basis over the vesting period based on the fair value of awards which are expected to vest. The fair value of all share-based awards is estimated on the date of grant.

New Accounting Pronouncements

May

2014,

the FASB issued ASU

2014

09,

Revenue from Contracts with Customers

. This guidance is the culmination of the FASB’s joint project with the International Accounting Standards Board to clarify the principles for recognizing revenue. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a

five

-step process that entities should follow in order to achieve that core principal. ASU

2014

09,

as amended by ASU

2015

14,

Revenue from Contracts with Customers (Topic

606):

eferral of the Effective Date

, ASU

2016

08,

Revenue from Contracts with Customers (Topic

606):

Principal versus Agent Considerations

, ASU

2016

10,

Revenue from Contracts with Customers (Topic

606):

Identifying Performance Obligations and Licensing

ASU

2016

12,

Revenue from Contracts with Customers (Topic

606):

Narrow-Scope Improvements and Practical Expedients

, and ASU

2016

20,

Technical

Corrections and Improvements to Topic

606,

Revenue from Contracts with Customers

, becomes effective for the Company in

2018.

The guidance can be applied either on a full retrospective basis or on a modified retrospective basis in which the cumulative effect of initially applying the standard is recognized at the date of initial application. While the Company is continuing to assess all potential impacts the standard

may

have on its financial statements, it believes that the adoption will not have a significant impact on its revenue related to equipment and parts sales, which represent substantially all of the revenue for the Company. The Company has not yet determined its method of adoption.

February

2016,

the FASB issued ASU

2016

02,

Leases

. This guidance is being issued to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the statement of financial position and by disclosing key information about leasing arrangements. The guidance should be applied using a modified retrospective approach and is effective for the Company in

2019,

with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on its results of operations and financial position.

March

2016,

the FASB issued ASU

2016

09,

Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting

. This guidance is a part of the FASB’s initiative to reduce complexity in accounting standards, and includes simplification involving several aspects of the accounting for share-based payment transactions, including excess tax benefits. The guidance should be applied on a modified retrospective basis and is effective for the Company in

2017,

with early adoption permitted. While the Company is still currently assessing all impacts of the guidance, the primary impact of adoption will be the recognition of excess tax benefits within the provision for income taxes on the statement of comprehensive income rather than within additional paid-in capital on the balance sheet. Additionally, this change will result in excess tax benefits from stock compensation to be reflected in net cash from operating activities on the statement of cash flows.

August

2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments

. This guidance is being issued to decrease diversity in practice for how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance should be applied on a retrospective basis and is effective for the Company in

2018,

with early adoption permitted. The Company does not believe that this guidance will have a significant impact on its presentation of the statement of cash flows.

January

2017,

the FASB issued ASU

2017

04,

Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment

. This guidance is being issued to simplify the subsequent measurement of goodwill by eliminating Step

of the goodwill impairment test. Under the new guidance, the recognition of a goodwill impairment charge is calculated based on the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This guidance should be applied on a prospective basis and is effective for the Company in

2020.

Early adoption is permitted for goodwill impairment tests performed after

January

2017.

The Company is currently assessing the impact the adoption will have on its results of operations and financial position.

In the

first

quarter of

2016,

the Company adopted ASU

2015

03,

Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs

. As a result, the Company adjusted the impacted line items in the

December

31,

2015

consolidated balance sheet to conform to the current period’s presentation; decreasing both the Deferred financing costs, net and Long-term borrowings and capital lease obligations line items by

$12,965.

Also in the

first

quarter of

2016,

the Company adopted ASU

2015

17,

Income Taxes: Balance Sheet Classification of Deferred Taxes

. As a result, the Company adjusted the impacted line items in the

December

31,

2015

consolidated balance sheet to conform to the current period’s presentation; decreasing the Deferred income taxes line item within current assets by

$29,355,

increasing the Deferred income taxes line item within noncurrent assets by

$28,139,

and decreasing the Deferred income taxes line within noncurrent liabilities by

$1,216.

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 accounting pronouncements has had or will have a material impact on the Company

’s consolidated financial statements.

Note 3 - Acquisitions

12 Months Ended

Dec. 31, 2016

Business Combination Disclosure [Text Block]

3.	Acquisitions

Acquisition of Pramac

March

2016,

the Company acquired a

65%

ownership interest in Pramac for a purchase price, net of cash acquired, of

$60,886.

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 consolidated balance sheet, as t

he noncontrolling interest holder has within its control the right to require the Company to redeem its interest in Pramac. The noncontrolling interest holder has a put option to sell their interests to the Company any time within

five

years from the date of acquisition. The put option price is either (i) a fixed amount if voluntarily exercised within the

first

two

years after the acquisition, or (ii) based on a multiple of earnings, subject to the terms of the acquisition. Additionally, the Company holds a call option that it

may

redeem commencing

five

years from the date of acquisition, or earlier upon the occurrence of certain circumstances. The call option price is based on a multiple of earnings that is subject to the terms of the acquisition. Both the put and call option only provide for the complete transfer of the noncontrolling interest, with no partial transfers of interest permitted.

The redeemable noncontrolling interest is recorded at the greater of the initial fair value, increased or decreased for the noncontrolling interests

’ share of comprehensive net income (loss), or the estimated redemption value, with any adjustment to the redemption value impacting retained earnings, but not net income. However, the redemption value adjustments are reflected in the earnings per share calculation, as detailed in Note

12,

"Earnings Per Share," to the consolidated financial statements. The following table presents the changes in the redeemable noncontrolling interest:

	Year Ended
	December 31, 2016
Beginning Balance - January 1	$	-
Noncontrolling interest of Pramac		34,253
Net income		100
Foreign currency translation		(2,124	)
Redemption value adjustment		909
Ending Balance - December 31	$	33,138

The Company recorded a preliminary purchase price allocation during the

first

quarter of

2016,

which

was updated in the

fourth

quarter of

2016,

based upon its estimates of the fair value of the acquired assets and assumed liabilities. The preliminary purchase price allocation as of the balance sheet date was as follows:

	March 1, 2016
Accounts receivable	$	51,289
Inventories		39,889
Property and equipment		19,138
Intangible assets		34,471
Goodwill		46,202
Other assets		7,698
Total assets acquired		198,687

Short-term borrowings		21,105
Accounts payable		40,270
Long-term debt and capital lease obligations (including current portion)		18,599
Other liabilities		23,521
Redeemable noncontrolling interest		34,253
Noncontrolling interest		53
Net assets acquired	$	60,886

The goodwill ascribed to this acquisition is not deductible for tax purposes. The accompanying consolidated financial statements include the results of Pramac from the date of acquisition through

December

31,

2016.

Acquisition of CHP

August

2015,

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 pric

e 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 debt along with this acquisition. The accompanying consolidated financial statements include the results of CHP from the date of acquisition through

December

31,

2016.

Acquisition of MAC

October

2014,

the Company acquired MAC for a purchase price, net of cash

acquired, of

$53,747.

MAC is a leading manufacturer of premium-grade commercial and industrial mobile heaters within the United States and Canada. The acquisition was funded solely through cash on hand.

The Company recorded a preliminary purchase price allocation during the

fourth

quarter of

2014

based upon its estimates of the fair value of the acquired assets and assumed liabilities. As a result, the Company recorded approximately

$49,378

of intangible assets, including

approximately

$25,898

of goodwill, as of the acquisition date. The purchase price allocation was finalized during the

third

quarter of

2015,

resulting in a

$4,229

decrease to total intangible assets, including an increase of

$2,481

to goodwill. The goodwill ascribed to this acquisition is not deductible for tax purposes. The accompanying consolidated financial statements include the results of MAC from the date of acquisition through

December

31,

2016.

Pro Forma Information

The following unaudited pro forma information of the Company gives effect to these acquisitions as though the transactions had occurred on

January

2014:

	Year Ended December 31,
	2016		2015		2014
Net Sales:
As reported	$	1,444,453	$	1,317,299	$	1,460,919
Pro forma		1,473,799		1,556,459		1,776,843

Net income attributable to Generac Holdings Inc.:
As reported	$	98,788	$	77,747	$	174,613
Pro forma		100,907		78,618		174,926

Net income attributable to Generac Holdings Inc. per common share - diluted
As reported	$	1.50	$	1.12	$	2.49
Pro forma		1.53		1.14		2.49

This unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisitions bee

n consummated on

January

2014.

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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Note 4 - Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Text Block]

4.	Derivative Instruments and Hedging Activities

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 both

December

31,

2016

and

2015,

the Company had

one

commodity contract outstanding, 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 consolidated statements of comprehensive income. Net gains (losses) recognized were

$739,

$(1,909)

and

$(629)

for the years ended

December

31,

2016,

2015,

and

2014,

respectively.

Foreign Currencies

The Company is exposed to foreign currency exchange risk as a result of transactions

denominated in currencies other than the U.S. Dollar. The Company periodically utilizes foreign currency forward purchase and sales contracts to manage the volatility associated with certain foreign currency purchases and sales in the normal course of business. Contracts typically have maturities of

twelve

months or less. As of

December

31,

2016

and

2015,

the Company had

thirty

eight

and

six

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 consolidated statements of comprehensive income. Net losses recognized for the years ended

December

31,

2016,

2015

and

2014

were

$385,

$624

and

$149,

respectively.

Interest Rate Swaps

October

2013,

the Company entered into

two

interest rate swap agreements, and in

May

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 the Company

’s derivatives:

	December 31 , 201 6			December 31, 201 5
Commodity contracts	$	623		$	(400	)
Foreign currency contracts		(150	)		(171	)
Interest rate swaps		(1,739	)		(2,618	)

The fair value of the commodity

contract is included in other assets, the fair value of the foreign currency contracts are included in other accrued liabilities, and the fair value of the interest rate swaps are included in other long-term liabilities in the consolidated balance sheet as of

December

31,

2016.

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 are included in other long-term liabilities in the consolidated balance sheet as of

December

31,

2015.

Excluding the impact of credit risk, the fair value of the derivative contracts as of

December

31,

2016

and

2015

is a liability of

$1,295

and

$3,248,

respectively, which represents the amount the Company would need to pay to exit the agreements on those dates.

The amount of

gains (losses) recognized in AOCL in the consolidated balance sheets on the effective portion of interest rate swaps designated as hedging instruments for the years ended

December

31,

2016,

2015

and

2014

were

$535,

$(965)

and

$(1,420),

respectively. The amount of gains (losses) recognized in cost of goods sold in the consolidated statements of comprehensive income for commodity and foreign currency contracts not designated as hedging instruments for the years ended

December

31,

2016,

2015

and

2014

were

$354,

$(2,533)

and

$(778),

respectively.

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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-Name Accounting Standards Codification
-Topic 235
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Note 5 - Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2016

Comprehensive Income (Loss) Note [Text Block]

5.	Accumulated Other Comprehensive Loss

The following presents a tabular disclosure of changes in

AOCL during the years ended

December

31,

2016

and

2015,

net of tax:

	Foreign Currency Translation Adjustments			Defined Benefit Pension Plan			Unrealized Gain (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		(18,545	)		(273	)		535			(18,283	)
Amounts reclassified from AOCL		-			595			-			595
Net current-period other comprehensive income (loss)		(18,545	)		322			535			(17,688	)
Ending Balance – December 31, 2016	$	(28,047	)	$	(11,040	)	$	(1,076	)	$	(40,163	)

	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 income (loss) before reclassifications		(7,624	)		1,105			(965	)		(7,484	)
Amounts reclassified from AOCL		-			776			-			776
Net current-period other comprehensive income (loss)		(7,624	)		1,881			(965	)		(6,708	)
Ending Balance – December 31, 2015	$	(9,502	)	$	(11,362	)	$	(1,611	)	$	(22,475	)

(1)

Represents

unrecognized actuarial losses of

$(412),

net of tax benefit of

$139,

included in the computation of net periodic pension cost for the year ended

December

31,

2016.

See Note

14,

“Benefit Plans,” to the consolidated financial statements for additional information.

(2)

Represents unrealized

gains of

$876,

net of tax effect of

$(341)

for the year ended

December

31,

2016.

(3)

Represents

actuarial losses of

$941,

net of tax effect of

$(346),

amortized to net periodic pension cost for the year ended

December

31,

2016.

See Note

14,

“Benefit Plans,” to the consolidated financial statements for additional information.

(4)

Represents

unrecognized actuarial gains of

$1,829,

net of tax effect of

$(724),

included in the computation of net periodic pension cost for the year ended

December

31,

2015.

See Note

14,

“Benefit Plans,” to the consolidated financial statements for additional information.

(5)

Represents unrealized losses of

$(1,574),

net of tax benefit of

$609

for the year ended

December

31,

2015.

(6)

Represents actuarial losses of $

1,228,

net of tax effect of

$(452),

amortized to net periodic pension cost for the year ended

December

31,

2015.

See Note

14,

“Benefit Plans,” to the consolidated financial statements for additional information.

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

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-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Note 6 - Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting Disclosure [Text Block]

6.	Segment Reporting

Effective

in the

second

quarter of

2016,

the Company changed its segment reporting from

one

reportable segment to

two

reportable segments – Domestic and International – as a result of the recent Pramac acquisition and the ongoing strategy to expand the business internationally. The Domestic segment includes the legacy Generac business and the impact of acquisitions that are based in the United States, all of which have revenues that are substantially derived from the U.S. and Canada. The International segment includes the Ottomotores, Tower Light and Pramac acquisitions, all of which have revenues that are substantially derived from outside of the U.S and Canada. Both reportable segments design and manufacture a wide range of power generation equipment and other engine powered products. The Company has multiple operating segments, which it aggregates into the

two

reportable segments, based on materially similar economic characteristics, products, production processes, classes of customers and distribution methods.

All segment information has been retrospectively applied to all periods presented to reflect the new reportable segment structure.

	Net Sales
	Year Ended December 31,
Reportable Segments	2016		2015		2014
Domestic	$	1,173,559	$	1,204,589	$	1,343,367
International		270,894		112,710		117,552
Total	$	1,444,453	$	1,317,299	$	1,460,919

The Company's product offerings consist primarily of power

generation equipment and other engine powered products 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. The breakout of net sales between residential, commercial & industrial, and other products by product class is as follows:

	Net Sales
	Year Ended December 31,
Product Classes	2016		2015		2014
Residential products	$	772,436	$	673,764	$	722,206
Commercial & industrial products		557,532		548,440		652,216
Other		114,485		95,095		86,497
Total	$	1,444,453	$	1,317,299	$	1,460,919

Management evaluates the performance of its segments based primarily on Adjusted EBITDA,

which is reconciled to Income before provision for income taxes below. The computation of Adjusted EBITDA is based on the definition that is contained in the Company’s credit agreements.

	Adjusted EBITDA
	Year Ended December 31,
	2016			2015			2014
Domestic	$	261,428		$	254,882		$	322,769
International		16,959			15,934			14,514
Total adjusted EBITDA	$	278,387		$	270,816		$	337,283

Interest expense		(44,568	)		(42,843	)		(47,215	)
Depreciation and amortization		(54,418	)		(40,333	)		(34,730	)
Non-cash write-down and other adjustments (1)		(357	)		(3,892	)		3,853
Non-cash share-based compensation expense (2)		(9,493	)		(8,241	)		(12,612	)
Tradename and goodwill impairment (3)		-			(40,687	)		-
Loss on extinguishment of debt (4)		(574	)		(4,795	)		(2,084	)
Gain (loss) on change in contractual interest rate (5)		(2,957	)		(2,381	)		16,014
Transaction costs and credit facility fees (6)		(2,442	)		(2,249	)		(1,851	)
Business optimization expenses (7)		(7,316	)		(1,947	)		-
Other		120			(465	)		(296	)
Income before provision for income taxes	$	156,382		$	122,983		$	258,362

(1)

Includes gains/losses on disposal of assets, unrealized mark-to-market adjustments on commodity contracts,

and certain foreign currency and purchase accounting related adjustments.

(2)

Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods.

(3)

Represents the

2015

impairment of certain tradenames due to a change in brand strategy to transition and consolidate various brands to the Generac® tradename

($36,076)

and the impairment of goodwill related to the Ottomotores reporting unit

($4,611).

(4)

Represents the write-off of original issue discount and capitalized debt issuance costs due to voluntary debt prepayments.

(5)

For the year ended

December

31,

2016,

represents a non-cash loss

in the

third

quarter

2016

relating to the continued

basis point increase in borrowing costs as a result of the credit agreement leverage ratio remaining above

3.0

times and expected to remain above

3.0

based on current projections. For the year ended

December

31,

2015,

represents a non-cash loss relating to a

basis point increase in borrowing costs as a result of the credit agreement leverage ratio rising above

3.0

times effective

third

quarter

2015

and expected to remain above

3.0

times based on projections at the time. For the year ended

December

31,

2014

represents a non-cash gain relating to a

basis point reduction in borrowing costs as a result of the credit agreement leverage ratio falling below

3.0

times effective

second

quarter

2014

and expected to remain below

3.0

times based on projections at the time.

(6)

Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement; equity issuance, debt issuance or refinancing; together with certain fees relating to our senior secured credit facilities.

(7)

Represents charges relating to business optimization and restructuring costs.

The following tables summarize additional financial information by reportable segment:

	Assets
	Year Ended December 31,
	2016		2015		2014
Domestic	$	1,521,665	$	1,605,043	$	1,672,336
International		340,019		173,592		192,083
Total	$	1,861,684	$	1,778,635	$	1,864,419

	Depreciation and Amortization
	Year Ended December 31,
	2016		2015		2014
Domestic	$	42,346	$	35,327	$	29,410
International		12,072		5,006		5,320
Total	$	54,418	$	40,333	$	34,730

	Capital Expenditures
	Year Ended December 31,
	2016		2015		2014
Domestic	$	26,936	$	29,368	$	33,976
International		3,531		1,283		713
Total	$	30,467	$	30,651	$	34,689

The Company

’s sales in the United States represent approximately

77%,

85%,

and

84%

of total sales for the years ended

December

31,

2016,

2015

and

2014,

respectively. Approximately

87%

and

93%

of the Company’s identifiable long-lived assets are located in the United States as of

December

31,

2016

and

2015,

respectively.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
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Note 8 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Text Block]

8.	Goodwill and Intangible Assets

The changes in the carrying amount of goodwill

by reportable segment for the years ended

December

31,

2016

and

2015

are as follows:

	Domestic		International			Total
Balance at December 31, 2014	$	582,686	$	52,879		$	635,565
Acquisitions of businesses, net		38,765		-			38,765
Impairment		-		(4,611	)		(4,611	)
Balance at December 31, 2015		621,451		48,268			669,719
Acquisitions of businesses, net		-		46,202			46,202
Foreign currency translation		-		(11,281	)		(11,281	)
Balance at December 31, 2016	$	621,451	$	83,189		$	704,640

The detail

s of the gross goodwill allocated to each reportable segment at

December

31,

2016

and

2015

are as follows:

	Year Ended December 31, 2016							Year Ended December 31, 2015
	Gross		Accumulated Impairment			Net		Gross		Accumulated Impairment			Net
Domestic	$	1,124,644	$	(503,193	)	$	621,451	$	1,124,644	$	(503,193	)	$	621,451
International		87,800		(4,611	)		83,189		52,879		(4,611	)		48,268
Total	$	1,212,444	$	(507,804	)	$	704,640	$	1,177,523	$	(507,804	)	$	669,719

See Note

“Acquisitions

,” to the consolidated financial statements for further information regarding the Company’s acquisitions and Note

“Significant Accounting Policies – Goodwill and Other Indefinite-Lived Intangible Assets,” to the consolidated financial statements for further information regarding the Company’s

2015

goodwill impairment charge.

The following table summarizes intangible assets by major category as of Decembe

31,

2016

and

2015:

	Weighted Average		December 31, 2016							December 31, 2015
	Amortization Years		Gross		Accumulated Amortization			Net Book Value		Gross		Accumulated Amortization			Net Book Value
Finite-lived intangible assets:
Tradenames		8	$	50,742	$	(20,189	)	$	30,553	$	43,252	$	(10,516	)	$	32,736
Customer lists		9		333,935		(288,623	)		45,312		314,600		(275,287	)		39,313
Patents		14		130,099		(82,038	)		48,061		126,491		(72,719	)		53,772
Unpatented technology		15		13,169		(11,771	)		1,398		13,169		(11,628	)		1,541
Software		-		1,046		(1,046	)		-		1,046		(1,042	)		4
Non-compete/other		7		2,513		(986	)		1,527		1,731		(508	)		1,223
Total finite-lived intangible assets			$	531,504	$	(404,653	)	$	126,851	$	500,289	$	(371,700	)	$	128,589
Indefinite-lived tradenames				128,321		-			128,321		128,321		-			128,321
Total intangible assets			$	659,825	$	(404,653	)	$	255,172	$	628,610	$	(371,700	)	$	256,910

See

Note

“Significant Accounting Policies – Goodwill and Other Indefinite-Lived Intangible Assets,” to the consolidated financial statements for further information regarding the Company’s

2015

brand strategy change and resulting tradename impairment charge, which was netted against the gross intangible asset balance at

December

31,

2015.

Amortization of intangible

assets was

$32,953,

$23,591

and

$21,024

2016,

2015

and

2014,

respectively. Excluding the impact of any future acquisitions, the Company estimates amortization expense for the next

five

years will be as follows:

2017

$27,856;

2018

$19,511;

2019

$17,816;

2020

$17,743;

2021

$15,958.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Note 9 - Product Warranty Obligations

12 Months Ended

Dec. 31, 2016

Product Warranty Disclosure [Text Block]

9.	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 contracts.

The following is a tabular reconciliation of the product warranty liability,

excluding the deferred revenue related to our extended warranty coverage:

	Year Ended December 31,
	2016			2015			2014
Balance at beginning of period	$	30,197		$	30,909		$	33,734
Product warranty reserve assumed in acquisition		840			351			360
Payments		(18,691	)		(21,686	)		(20,975	)
Provision for warranty issued		19,148			20,823			22,890
Changes in estimates for pre-existing warranties		201			(200	)		(5,100	)
Balance at end of period	$	31,695		$	30,197		$	30,909

The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage

	Year Ended December 31,
	2016			2015			2014
Balance at beginning of period	$	28,961		$	27,193		$	23,092
Deferred revenue contracts assumed in acquisition		-			291			-
Deferred revenue contracts issued		7,733			5,978			7,343
Amortization of deferred revenue contracts		(5,614	)		(4,501	)		(3,242	)
Balance at end of period	$	31,080		$	28,961		$	27,193

Product warranty obligations and warranty

related deferred revenues are included in the balance sheets as follows:

	December 31,
	2016		2015
Product warranty liability
Current portion - other accrued liabilities	$	20,763	$	21,726
Long-term portion - other long-term liabilities		10,932		8,471
Total	$	31,695	$	30,197

Deferred revenue related to extended warranties
Current portion - other accrued liabilities	$	6,728	$	6,026
Long-term portion - other long-term liabilities		24,352		22,935
Total	$	31,080	$	28,961

Note 10 - Credit Agreements

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Text Block]

10.	Credit Agreements

Short-term

borrowings are included in the consolidated balance sheets as follows:

	December 31,
	2016		2015
ABL facility	$	-	$	-
Other lines of credit		31,198		8,594
Total	$	31,198	$	8,594

Long-term borrowi

ngs are included in the consolidated balance sheets as follows:

	December 31,
	2016			2015
Term loan	$	929,000		$	954,000
Original issue discount and deferred financing costs		(26,677	)		(29,905	)
ABL facility		100,000			100,000
Capital lease obligation		4,647			1,694
Other		14,753			12,000
Total		1,021,723			1,037,789
Less: current portion of debt		14,399			500
Less: current portion of capital lease obligation		566			157
Total	$	1,006,758		$	1,037,132

Maturities of long-term borrowings outstanding at

December

31,

2016,

are as follows:

201 7	$	14,965
201 8		745
201 9		639
20 20		100,547
After 20 20		931,504
Total	$	1,048,400

The

Company’s credit agreements provided for a

$1,200,000

term loan B credit facility (Term Loan) and include a

$300,000

uncommitted incremental term loan facility. In

November

2016,

the Company amended its Term Loan to extend the maturity date from

May

31,

2020

May

31,

2023.

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 Company’s net debt leverage ratio, as defined in the Term Loan, falls below

3.00

1.00

for that measurement period.

Because the Company

’s net debt leverage ratio was below

3.00

1.00

April

2014,

it realized a

basis point reduction in borrowing costs in the

second

quarter of

2014.

As a result, the Company recorded a cumulative catch-up gain of

$16,014

in the

second

quarter of

2014,

which represents the total cash interest savings over the remaining term of the loan, as the Company projected the net debt leverage ratio to remain below

3.00

1.00

using current forecasts at that time. The gain was recorded as original issue discount on long-term borrowings in the consolidated balance sheets and as a gain on change in contractual interest rate in the consolidated statements of comprehensive income.

Because the Company

’s net debt leverage ratio was above

3.00

1.00

July

2015,

it realized a

basis point increase in borrowing costs in the

third

quarter of

2015.

As a result, the Company recorded a cumulative catch-up loss of

$2,381

in the

third

quarter of

2015,

which represents the additional cash interest expected to be paid while the net debt leverage ratio is expected to be above

3.00

1.00

using current forecasts at that time. The loss was recorded against original issue discount on long-term borrowings in the consolidated balance sheets and as a loss on change in contractual interest rate in the consolidated statements of comprehensive income.

As the Company

’s net debt leverage ratio continued to be above

3.00

1.00

July

2016,

the Company recorded a cumulative catch-up loss of

$2,957

in the

third

quarter of

2016,

which represents the additional cash interest expected to be paid while the net debt leverage ratio is expected to be above

3.00

1.00

December

31,

2016

was above

3.00

1.00.

May

2015,

the Company amended certain provisions and covenants of the Term Loan. In connection with this amendment and in accordance with ASC

470

50,

Debt Modifications and Extinguishments

, the Company capitalized

$1,528

of fees paid to creditors as original issue discount on long-term borrowings and expensed

$49

of transaction fees in the

second

quarter of

2015.

November

2016,

the Company amended its Term Loan to extend the maturity date from

May

31,

2020

May

31,

2023.

In connection with this amendment and in accordance with ASC

470

50,

Debt Modifications and Extinguishments

, the Company capitalized

$4,242

of fees paid to creditors as original issue discount on long-term borrowings and expensed

$315

of transaction fees in the

fourth

quarter of

2016.

As of

December

31,

2016,

the Company is in compliance with all covenants of the Term Loan. There are no financial maintenance covenants on the Term Loan.

he Company’s credit agreements also originally provided for a

$150,000

senior secured ABL revolving credit facility (ABL Facility). The maturity date of the ABL Facility originally 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.

May

2015,

the Company amended its ABL Facility. The amendment (i) increased the ABL Facility from

$150,000

$250,000

(Amended ABL Facility), (ii) extended the maturity date from

May

31,

2018

May

29,

2020,

(iii) increased the uncommitted incremental facility from

$50,000

$100,000,

(iv) reduced the interest rate spread by

basis points and (v) reduced the unused line fee by

12.5

basis points across all tiers. Additionally, the amendment relaxes 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). In connection with this amendment and in accordance with ASC

470

50,

the Company capitalized

$540

of new debt issuance costs in

2015.

May

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

December

31,

2016,

there was

$100,000

outstanding under the Amended ABL Facility, leaving

$145,593

of availability, net of outstanding letters of credit.

April,

September

and

December

2014,

the Company made voluntary prepayments of the Term Loan of

$12,000,

$50,000

and

$25,000,

respectively, with available cash on hand that was applied to future principal amortizations and the Excess Cash Flow payment requirement in the Term Loan. As a result of the prepayments, the Company wrote off

$2,084

of original issue discount and capitalized debt issuance costs during the year ended

December

31,

2014

as a loss on extinguishment of debt in the consolidated statement of comprehensive income.

March

and

May

2015,

the Company made voluntary prepayments of the Term Loan of

$50,000

and

$100,000,

respectively, which were applied to the Excess Cash Flow payment requirement in the Term Loan. As a result of the prepayments, the Company wrote off

$4,795

of original issue discount and capitalized debt issuance costs during the year ended

December

31,

2015

as a loss on extinguishment of debt in the consolidated statement of comprehensive income.

November

2016,

the Company made a voluntary prepayment of the Term Loan of

$25,000,

which will be applied to the Excess Cash Flow payment requirement in the Term Loan. As a result of the prepay

ment, the Company wrote off

$574

of original issue discount and capitalized debt issuance costs during the year ended

December

31,

2016

as a loss on extinguishment of debt in the consolidated statement of comprehensive income.

As of

December

31,

201

and

December

31,

2015,

short-term borrowings consisted primarily of borrowings by our foreign subsidiaries on local lines of credit, which totaled

$31,198

and

$8,594,

respectively.

Note 11 - Stock Repurchase Program

12 Months Ended

Dec. 31, 2016

Treasury Stock [Text Block]

11.	Stock Repurchase Program

August

2015,

the Company’s Board of Directors approved a

$200,000

stock repurchase program. Under the program, the Company

may

repurchase up to

$200,000

of its common stock over the following

months, in amounts and at prices the Company deems appropriate, subject to market conditions and other considerations. The Company completed the program in the

third

quarter of

2016.

October

2016,

the Company’s Board of Directors approved a

$250,000

stock repurchase program. Under the program, the Company

may

repurchase an additional

$250,000

of its common stock over the following

months. The Company

may

repurchase its common stock from time to time, in amounts and at prices the Company deems appropriate, subject to market conditions and other considerations. The repurchase

may

be executed using open market purchases, privately negotiated agreements or other transactions. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s shares of common stock and general market and economic conditions, applicable legal requirements, and compliance with the terms of the Company’s outstanding indebtedness. The repurchases

may

be funded with cash on hand, available borrowings or proceeds from potential debt or other capital markets sources. The stock repurchase program

may

be suspended or discontinued at any time without prior notice. For the year ended

December

31,

2016,

the Company repurchased

3,968,706

shares of its common stock for

$149,937.

Since the inception of the programs, the Company has repurchased

7,272,206

shares of its common stock for

$249,879,

all funded with cash on hand.

Note 12 - Earnings Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Text Block]

12.	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, 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:

	Year Ended December 31,
	2016			2015		2014
Numerator
Net income attributable to Generac Holdings Inc.	$	98,788		$	77,747	$	174,613
Redeemable noncontrolling interest redemption value adjustment		(909	)		-		-
Net income attributable to common shareholders	$	97,879		$	77,747	$	174,613

Denominator
Weighted average shares, basic		64,905,793			68,096,051		68,538,248
Dilutive effect of stock compensation awards (1)		476,981			1,104,246		1,632,796
Diluted shares		65,382,774			69,200,297		70,171,044

Net income attributable to common shareholders per share
Basic	$	1.51		$	1.14	$	2.55
Diluted	$	1.50		$	1.12	$	2.49

(1)

Excludes

approximately

15,800,

161,400

and

81,600

stock options for the years ended

December

31,

2016,

2015

and

2014,

respectively, as the impact of such awards was anti-dilutive. Excludes approximately

1,000

shares of restricted stock for the year ended

December

31,

2015,

as the impact of such awards was anti-dilutive.

Note 13 - Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Text Block]

13.	Income Taxes

The Company

’s provision for income taxes consists of the following:

	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$	11,717		$	13,614		$	38,161
State		2,047			1,966			1,645
Foreign		4,460			3,588			5,701
		18,224			19,168			45,507
Deferred:
Federal		41,264			31,869			42,474
State		3,029			1,387			(3,134	)
Foreign		(5,585	)		(7,326	)		(1,462	)
		38,708			25,930			37,878
Change in valuation allowance		638			138			364
Provision for income taxes	$	57,570		$	45,236		$	83,749

As of Dece

mber

31,

2016,

due to the carryforward of net operating losses, and research and development credits, the Company is open to U.S. federal and state income tax examinations for the tax years

2006

through

2015.

In addition, the Company is subject to audit by various foreign taxing jurisdictions for the tax years

2011

through

2015.

During

2015,

the Internal Revenue Service completed field work on income tax audits for the

2012

and

2013

tax years. A final audit report was issued and resulted in no change to the Company’s provision for income taxes.

Significant components of deferred tax assets and liabilities are as follows:

	December 31,
	2016			2015
Deferred tax assets:
Accrued expenses	$	22,758		$	18,982
Deferred revenue		10,645			9,389
Inventories		10,159			9,772
Pension obligations		7,512			7,684
Stock-based compensation		7,291			7,974
Operating loss and credit carryforwards		20,927			15,677
Other		2,822			2,842
Valuation allowance		(4,362	)		(1,523	)
Total deferred tax assets		77,752			70,797

Deferred tax liabilitites:
Goodwill and intangible assets		58,133			12,455
Depreciation		25,194			19,507
Debt refinancing costs		7,193			7,732
Prepaid expenses		1,173			1,241
Total deferred tax liabilities		91,693			40,935

Net deferred tax assets (liabilities)	$	(13,941	)	$	29,862

As of

December

31,

2016

and

2015,

deferred tax assets of

$3,337

and

$34,812,

and deferred tax liabilities of

$17,278

and

$4,950,

respectively, were reflected on the consolidated balance sheets.

The Company had approximately

$592,000

of tax-deductible goodwill and intangible asset amortization remaining as of

December

31,

2016

related to our acquisition by CCMP in

2006

that is expected to generate aggregate cash tax savings of approximately $

231,000

through

2021,

assuming continued profitability and a

39%

tax rate. The recognition of the tax benefit associated with these assets for tax purposes is expected to be approximately

$122,000

annually through

2020

and approximately

$102,000

2021,

which generates annual cash tax savings of approximately

$48,000

through

2020

and approximately

$40,000

2021,

assuming profitability and a

39%

tax rate.

Generac Brazil, a

cquired as part of the Ottomotores acquisition, has generated net operating losses for multiple years as part of the start-up of the business. The realizability of the deferred tax assets associated with these net operating losses is uncertain so a valuation allowance was recorded in the opening balance sheet as of

December

2012

and continued through

December

31,

2016.

In addition, the Company recorded a valuation allowance in the opening balance sheet and as of

December

31,

2016

rel

ated to the Pramac acquisition. The valuation allowance represents a reserve for deferred tax assets, including loss carryforwards, of Pramac subsidiaries, for which utilization is uncertain.

December

31,

201

the Company had state research and development credits, and state manufacturing credit carryforwards of approximately

$17,498

and

$3,736,

respectively, which expire between

2017

and

2031.

Changes in the Company

’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows:

	December 31,
	2016		2015
Unrecognized tax benefit, beginning of period	$	7,239	$	6,394
Increase in unrecognized tax benefit for positions taken in current period		704		845
Unrecognized tax benefit, end of period	$	7,943	$	7,239

The unrecognized tax

benefit as of

December

31,

2016

and

2015,

if recognized, would impact the effective tax rate.

Interest and penalties are recorded as a component of income tax expense.

As of

December

31,

2016,

2015

and

2014,

total interest of approximately

$272,

$174

and

$86,

respectively, and penalties of approximately

$425,

$363

and

$263,

respectively, associated with net unrecognized tax benefits are included in the Company’s consolidated balance sheets.

The Company does not expect a significant increase or decrease to the total amounts of unrecognized tax benefits related to continuing operations during the fiscal year ending

December

31,

2017.

The Company considers the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash

needs and the Company’s specific plans for reinvestment of those subsidiary earnings. The Company has not provided for additional U.S. income taxes on approximately

$7,551

of undistributed earnings of consolidated non-U.S. subsidiaries. It is not practicable to estimate the amount of unrecognized withholding taxes and deferred tax liability on such earnings.

A reconciliation of the statutory tax rates and the effective tax rates for t

he years ended

December

31,

2016,

2015

and

2014

are as follows:

	Year Ended December 31,
	2016			2015			2014
U.S. statutory rate		35.0	%		35.0	%		35.0	%
State taxes		4.1			4.1			3.1
Research and development credits		(1.0	)		(2.3	)		(5.0	)
Other		(1.3	)		-			(0.7	)
Effective tax rate		36.8	%		36.8	%		32.4	%

Note 14 - Benefit Plans

12 Months Ended

Dec. 31, 2016

Pension and Other Postretirement Benefits Disclosure [Text Block]

14.	Benefit Plans

Medical and Dental Plan

The Company maintains medical and dental benefit plans covering

its full-time domestic employees and their dependents. Certain plans are partially or fully self-funded plans under which participant claims are obligations of the plan. These plans are funded through employer and employee contributions at a level sufficient to pay for the benefits provided by the plan. The Company’s contributions to the plans were

$15,019,

$14,352,

and

$11,701

for the years ended

December

31,

2016,

2015,

and

2014,

respectively.

The Company

’s foreign subsidiaries participate in government sponsored medical benefit plans. In certain cases, the Company purchases supplemental medical coverage for certain employees at these foreign locations

. The expenses related to these plans are not material to the Company’s consolidated financial statements.

avings Plan

The Company maintains

defined-contribution

401(k)

savings plans for eligible domestic employees. Under the plans, employees

may

defer receipt of a portion of their eligible compensation. The Company amended the

401(k)

savings plans effective

January

2009,

to add Company matching and non-elective contributions. The Company

may

contribute a matching contribution of

50%

of the

first

of eligible compensation of employees. The Company

may

also contribute a non-elective contribution for eligible employees employed on

December

31,

2008.

Both Company matching contributions and non-elective contributions are subject to vesting. Forfeitures

may

be applied against plan expenses and company contributions. The Company recognized

$3,400,

$3,000

and

$3,400

of expense related to this plan in

2016,

2015

and

2014,

respectively.

Pension Plans

The Company has

frozen noncontributory salaried and hourly pension plans (Pension Plans) covering certain domestic employees. The benefits under the salaried plan are based upon years of service and the participants’ defined final average monthly compensation. The benefits under the hourly plan are based on a unit amount at the date of termination multiplied by the participant’s years of credited service. The Company’s funding policy for the Pension Plans is to contribute amounts at least equal to the minimum annual amount required by applicable regulations.

The Company uses a

December

measurement date for the Pension Plans.

The table that includes the accumulated benefit obligation and reconciliation of the changes in projected benefit obligation, changes in plan assets and the funded status of the Pension Plans is as follows:

	Year Ended December 31,
	201 6			201 5

Accumulated benefit obligation at end of period	$	65,956		$	63,894

Change in projected benefit obligation
Projected benefit obligation at beginning of period	$	63,894		$	68,376
Interest cost		2,747			2,681
Net actuarial loss (gain)		1,363			(5,254	)
Benefits paid		(2,048	)		(1,909	)
Projected benefit obligation at end of period	$	65,956		$	63,894

Change in plan assets
Fair value of plan assets at beginning of period	$	43,985		$	45,452
Actual return (loss) on plan assets		3,820			(384	)
Company contributions		731			826
Benefits paid		(2,048	)		(1,909	)
Fair value of plan assets at end of period	$	46,488		$	43,985

Funded status: accrued pension liability included in other long-term liabilities	$	(19,468	)	$	(19,909	)

Amounts recognized in accumulated other comprehensive loss
Net actuarial loss, net of tax	$	(11,040	)	$	(11,362	)

The

actuarial loss for the Pension Plans that was amortized from AOCL into net periodic (benefit) cost during

2016

$941.

The amount in AOCL as of

December

31,

2016

that is expected to be recognized as a component of net periodic pension expense during the next fiscal year is

$883.

The

components of net periodic pension (benefit) cost are as follows:

	Year E nded December 31,
	201 6			201 5			201 4
Interest cost	$	2,747		$	2,681		$	2,591
Expected return on plan assets		(2,868	)		(3,041	)		(2,933	)
Amortization of net loss		941			1,228			106
Net periodic pension (benefit) cost	$	820		$	868		$	(236	)

Weighted-average assumptions used to determine

the benefit obligations are as follows:

	December 31,
	201 6			201 5
Discount rate – salaried pension plan		4.14	%		4.36	%
Discount rate – hourly pension plan		4.16	%		4.39	%
Rate of compensation increase (1)		n/a			n/a

(1)

No compensation increase was assumed as the plans were frozen effective

December

31,

2008.

Weighted-average assumptions used to

determine net periodic pension (benefit) cost are as follows:

	Y ear E nded December 31,
	201 6			201 5			201 4
Discount rate		4.39	%		3.99	%		5.01	%
Expected long-term rate of return on plan assets		6.62	%		6.75	%		6.88	%
Rate of compensation increase (1)		n/a			n/a			n/a

(1)

No compensation increase was assumed as the plans were frozen effective

December

31,

2008

To determine the long-term rate of return assumption for plan assets, the Company studies historical markets and preserves the long-term historical relationships between equities and fixed-income securities consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. The Company evaluates current market factors such as inflation and interest rates before it determines long-term capital market assumptions and reviews peer data and historical returns to check for reasonableness and

appropriateness.

The Pension Plans

’ weighted-average asset allocation at

December

31,

2016

and

2015,

by asset category, is as follows:

				December 31, 201 6					December 31, 201 5
Asset Category	Target			Dollars		%			Dollars		%
Fixed Income		20	%	$	7,812		17	%	$	8,571		19	%
Domestic equity		49	%		19,615		42	%		20,479		47	%
International equity		21	%		13,466		29	%		9,687		22	%
Real estate		10	%		5,595		12	%		5,248		12	%
Total		100	%	$	46,488		100	%	$	43,985		100	%

The fair values of the Pension Plans

’ assets at

December

31,

2016

are as follows:

	Total		Quoted Prices in Active Markets for Identical A sset (L evel 1)		Significant Observable I nputs (L evel 2)		Significant U nobservable I nputs (L evel 3)
Mutual fund s	$	37,860	$	37,860	$	–	$	–
Other investments		8,628		–		–		8,628
Total	$	46,488	$	37,860	$	–	$	8,628

The fair values of the Pension Pl

an's assets at

December

31,

2015

are as follows:

	Total		Quoted Prices in Active Markets for Identical A sset (L evel 1)		Significant O b servable I nputs (L evel 2)		Significant Unobservable I nputs (L evel 3)
Mutual fund s	$	40,310	$	40,310	$	–	$	–
Other investment s		3,675		–		–		3,675
Total	$	43,985	$	40,310	$	–	$	3,675

A reconciliation of beg

inning and ending balances for Level

assets for the years ended

December

31,

2016

and

2015

is as follows:

	Year Ended December 31,
	2016		2015
Balance at beginning of period	$	3,675	$	3,185
Purchases		4,400		408
Realized gains		553		82
Balance at end of period	$	8,628	$	3,675

Mutual Funds

– This category includes investments in mutual funds that encompass both equity and fixed income securities that are designed to provide a diverse portfolio. The plan’s mutual funds are designed to track exchange indices, and invest in diverse industries. Some mutual funds are classified as regulated investment companies. Investment managers have the ability to shift investments from value to growth strategies, from small to large capitalization funds, and from U.S. to international investments. These investments are valued at the closing price reported on the active market on which the individual securities are traded. These investments are classified within Level

of the fair value hierarchy.

Other Investments

– This category includes investments in limited partnerships and are valued at estimated fair value, as determined with the assistance of each respective limited partnership, based on the net asset value of the investment as of the balance sheet date, which is subject to judgment, and therefore is classified within Level

of the fair value hierarchy.

The Company

’s target allocation for equity securities and real estate is generally between

65%

85%,

with the remainder allocated primarily to fixed income (bonds). The Company regularly reviews its actual asset allocation and periodically rebalances its investments to the targeted allocation when considered appropriate.

The Company expects to make estimated

contributions of

$568

to the Pension Plans in

2017.

The following benefit payments are expected to be paid from the Pension Plans:

201 7	$	2,258
201 8		2,354
201 9		2,430
20 20		2,556
202 1		2,692
2022 – 2026		16,021

Certain of the Company

’s foreign subsidiaries participate in local defined benefit or other post-employment benefit plans. These plans provide benefits that are generally based on years of credited service and a percentage of the employee’s eligible compensation earned throughout the applicable service period. Liabilities recorded under these plans are included in accrued wages and employee benefits in the Company’s consolidated balance sheets and are not material.

Note 15 - Share Plans

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

15.	Share Plans

The Company adopted an equity incentive plan

(Plan) on

February

10,

2010

in connection with its initial public offering. The Plan, as amended, allows for granting of up to

9.1

million stock-based awards to executives, directors and employees. Awards available for grant under the Plan include stock options, stock appreciation rights, restricted stock, other stock-based awards and performance-based compensation awards. Total share-based compensation expense related to the Plan was

$9,493,

$8,241

and

$12,612

for the years ended

December

31,

2016,

2015

and

2014,

respectively, net of estimated forfeitures, which is recorded in operating expenses in the consolidated statements of comprehensive income.

Stock Options

- Stock options granted in

2016

have an exercise price between

$33.23

per share and

$35.37

per share; stock options granted in

2015

have an exercise price between

$28.36

per share and

$49.70

per share, and the stock options granted in

2014

have an exercise price between

$42.20

per share and

$59.01

per share.

Stock options issued in

2012

2016

vest in equal installments over

four

years, subject to the grantee’s continued employment or service and expire

ten

years after the date of grant. Stock options issued in

2011

and

2010

vest in equal installments over

five

years, subject to the grantee’s continued employment or service and expire

ten

years after the date of grant.

tock option exercises can be net-share settled such that the Company withholds shares with value equivalent to the exercise price of the stock option awards plus the employees’ minimum statutory obligation for the applicable income and other employment taxes. Total shares withheld were

473,743,

272,296

and

235,644

2016,

2015

and

2014,

respectively, and were based on the value of the stock on the exercise dates as determined based upon an average of the Company’s high and low stock sales price on the exercise dates. The net-share settlement has the effect of share repurchases by the Company as they reduce the number of shares that would have otherwise been issued.

Total payments for the employees' tax obligations to the taxing authorities were

$13,056,

$9,768

and

$10,411

2016,

2015

and

2014,

respectively, and are reflected as a financing activity within the consolidated statements of cash flows.

Employees can also utilize a cashless for cash exercise of stock options, such that all exercised shares will be sold in the market immediately. Cash equivalent to the exercise price of the awards plus the employees’ minimum statutory tax obligations is retained by the Company, with the remaining cash being transferred to the employee. Total proceeds from the cashless for cash exercise of stock options were

$1,623

2016,

and are reflected as a financing activity in the consolidated statement of cash flows.

The grant-date fair value of each option grant is estimated using the Black-Scholes-Merton option pricing model. The fair value is then amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs.

Expected volatility is calculated based on an analysis of historic and implied volatility measures for a set of peer companies. The average expected life is based on the contractual term of the option using the simplified method. The risk-free interest rate is based on U.S. Treasury

zero

-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The compensation expense recognized is net of estimated forfeitures. Forfeitures are estimated based on actual share option forfeiture history. The weighted-average assumptions used in the Black-Scholes-Merton option pricing model for

2016,

2015

and

2014

are as follows:

	201 6			201 5			201 4
Weighted average grant date fair value	$	13.77		$	19.07		$	26.35

Assumptions:
Expected stock price volatility		41	%		41	%		45	%
Risk free interest rate		1.31	%		1.72	%		1.90	%
Expected annual dividend per share	$	-		$	-		$	-
Expected life of options (years)		6.25			6.25			6.25

The Company periodically evaluates its forfeiture rates and updates the rates it uses in the determination of its stock-based compensation expense.

The impact of the change to the forfeiture rates on non-cash compensation expense was immaterial for the years ended

December

31,

2016,

2015

and

2014.

A summary of the Company

’s stock option activity and related information for the years ended

December

31,

2016,

2015

and

2014

is as follows:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value ($ in thousands)

Outstanding as of December 31, 2013		2,937,301		$	5.74		9.5	$	148,369
Granted		187,189			57.21
Exercised		(549,282	)		3.44
Expired		(259	)		15.94
Forfeited		(32,810	)		12.68
Outstanding as of December 31, 2014		2,542,139			9.94		8.5	$	96,518

Granted		287,165			45.18
Exercised		(604,088	)		3.79
Expired		(6,409	)		50.11
Forfeited		(90,793	)		37.27
Outstanding as of December 31, 2015		2,128,014			15.15		7.7	$	40,271

Granted		398,313			33.24
Exercised		(995,469	)		2.89
Forfeited		(47,894	)		37.41
Outstanding as of December 31, 2016		1,482,964			27.49		7.5	$	23,840

Exercisable as of December 31, 2016		787,654			17.64		6.7	$	19,897

As of

December

31,

2016,

there was

$8,051

of total unrecognized compensation cost, net of expected forfeitures, related to unvested options. The cost is expected to be recognized over the remaining service period, having a weighted-average period of

2.7

years. Total share-based compensation cost related to the stock options for

2016,

2015

and

2014

was

$4,366,

$4,198

and

$8,509,

respectively, which is recorded in operating expenses in the consolidated statements of comprehensive income.

Restricted Stock

– Restricted stock awards issued in

2012

and after, vest in equal installments over

three

years, subject to the grantee’s continued employment or service. Certain restricted stock awards also include performance shares, which were awarded in the years

2014

through

2016.

The number of performance shares that can be earned are contingent upon Company performance measures over a

three

-year period. Performance measures are based on a weighting of revenue growth and EBITDA margin, from which grantees

may

earn from

200%

of their target performance share award. The performance period for the

2014

awards covers the years

2014

through

2016,

the performance period for the

2015

awards covers the years

2015

through

2017,

and the performance period for the

2016

awards covers the years

2016

through

2018.

The Company estimates the number of performance shares that will vest based on projected financial performance. The fair market value of the restricted awards at the time of the grant is amortized to expense over the period of vesting. The fair value of restricted awards is determined based on the market value of the Company's shares on the grant date. The compensation expense recognized for restricted share awards is net of estimated forfeitures.

Restricted stock

vesting is net-share settled such that, upon vesting, the Company withholds shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and then pays those taxes on behalf of the employee. In effect, the Company repurchases these shares and classifies as treasury stock, and pays the cash to the taxing authorities on behalf of the employees to satisfy the tax withholding requirements. Total shares withheld were

28,593,

65,763

and

34,854

2016,

2015

and

2014,

respectively, and were based on the value of the stock on the vesting dates as determined based upon an average of the Company’s high and low stock sales price on the vesting dates. Total payments for the employees’ tax obligations to the taxing authorities were

$952,

$3,233

and

$1,770

2016,

2015

and

2014,

respectively, and are reflected as a financing activity within the consolidated statements of cash flows.

A summary of the Company's restricted stock activity for the years end

December

31,

2016,

2015

and

2014

is as follows:

	Shares			Weighted- Average Grant- Date Fair Value

Non-vested as of December 31, 2013		304,406		$	29.68
Granted		115,473			54.35
Vested		(105,123	)		28.31
Forfeited		(47,472	)		42.31
Non-vested as of December 31, 2014		267,284			38.72

Granted		193,117			41.31
Vested		(183,362	)		32.56
Forfeited		(33,999	)		47.77
Non-vested as of December 31, 2015		243,040			44.16

Granted		232,295			33.56
Vested		(95,858	)		41.93
Forfeited		(18,074	)		38.30
Non-vested as of December 31, 2016		361,403			38.18

As of

December

31,

2016,

there was

$7,192

of unrecognized compensation cost, net of expected forfeitures, related to non-vested restricted stock awards. That cost is expected to be recognized over the remaining service period, having a weighted-average period of

1.9

years.

Total share-based compensation cost related to the restricted stock for

2016,

2015

and

2014

was

$5,127,

$4,043

and

$4,103,

respectively, which is recorded in operating expenses in the consolidated statements of comprehensive income.

During

201

2015

and

2014,

19,326,

16,260

and

8,869

shares, respectively, of fully vested stock were granted to certain members of the Company’s Board of Directors as a component of their compensation for their service on the Board. Total compensation cost for these share grants in

2016,

2015

and

2014

was

$670,

$615

and

$509,

respectively, which is recorded in operating expenses in the consolidated statements of comprehensive income.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Note 16 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Text Block]

16.	Commitments and Contingencies

The Company leases certain

manufacturing and office facilities, machinery and computer equipment, automobiles and warehouse space under operating leases. The approximate aggregate minimum rental commitments at

December

31,

2016,

are as follows:

201 7	$	7,922
201 8		7,314
201 9		6,368
20 20		5,559
202 1		3,946
After 202 1		5,730
Total	$	36,839

Total rent expense for t

he years ended

December

31,

2016,

2015

and

2014,

was approximately

$9,146,

$4,796,

and

$4,102,

respectively.

The Company has an arrangement with a finance company to provide f

loor plan financing for certain 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

December

31,

2016

and

2015

was approximately

$33,900

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.

Note 17 - Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Text Block]

17.	Quarterly Financial Information (Unaudited)

	Quarters Ended 201 6
	Q1		Q2		Q3		Q4
Net sales	$	286,535	$	367,376	$	373,121	$	417,421
Gross profit		98,060		124,147		137,772		154,127
Operating income		26,964		44,082		56,340		77,231
Net income attributable to Generac Holdings Inc.		10,208		20,888		26,183		41,509
Net income attributable to common shareholders per common share - basic:	$	0.15	$	0.32	$	0.41	$	0.64
Net income attributable to common shareholders per common share - diluted:	$	0.15	$	0.31	$	0.40	$	0.64

	Quarters Ended 201 5
	Q1		Q2		Q3		Q4
Net sales	$	311,818	$	288,360	$	359,291	$	357,830
Gross profit		102,603		95,897		130,326		131,124
Operating income		44,911		39,467		67,867		27,316
Net income attributable to Generac Holdings Inc.		19,685		14,844		34,036		9,182
Net income attributable to common shareholders per common share - basic:	$	0.29	$	0.22	$	0.50	$	0.14
Net income attributable to common shareholders per common share - diluted:	$	0.28	$	0.21	$	0.49	$	0.14

Note 18 - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

18.	Valuation and Qualifying Accounts

For t

he years ended

December

31,

2016,

2015

and

2014:

	Balance at Beginning of Year		Additions Charged to Earnings		Charges to Reserve, Net (1)			Reserves Established for Acquisitions		Balance at End of Year
Year ended December 31, 201 6
Allowance for doubtful accounts	$	2,494	$	1,654	$	(1,110	)	$	2,604	$	5,642
Reserves for inventory		10,582		5,359		(5,357	)		2,447		13,031
Valuation of deferred tax assets		1,523		638		–			2,201		4,362

Year ended December 31, 201 5
Allowance for doubtful accounts	$	2,275	$	481	$	(325	)	$	63	$	2,494
Reserves for inventory		9,387		3,739		(3,158	)		614		10,582
Valuation of deferred tax assets		1,385		138		–			–		1,523

Year ended December 31, 201 4
Allowance for doubtful accounts	$	2,658	$	672	$	(1,264	)	$	209	$	2,275
Reserves for inventory		6,558		2,797		(2,250	)		2,282		9,387
Valuation of deferred tax assets		1,021		364		–			–		1,385

(1)

Deductions from the allowance for doubtful accounts equal accounts receivable written off, less recoveries, against the allowance. Deductions from the reserves for inventory excess and obsolete items equal inventory written off against the reserve as items were disposed of.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The 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.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash

and Cash

Equivalents

The Company considers all highly liquid investments purchased with an original maturity of

three

months or less to be cash equivalents.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

The Company maintains the majority of its

domestic cash in

one

One customer accounted for

approximately

and

11%

of accounts receivable at

December

31,

2016

and

2015,

respectively. No

one

customer accounted for greater than

7%,

and

8%,

of net sales during the years ended

December

31,

2016,

2015,

2014,

respectively.

Receivables, Policy [Policy Text Block]

Accounts Receivable

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost or

market, with cost determined generally using the

first

-in,

first

-out method.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Land improvements	15	–	20
Buildings and improvements	10	–	40
Machinery and equipment	3	–	10
Dies and tools	3	–	10
Vehicles	3	–	6
Office equipment and systems	3	–	15
Leasehold improvements	2	–	20

Total depreciation expense was

$21,465,

$16,742,

and

$13,706

for the years ended

December

31,

2016,

2015,

and

2014,

respectively.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Other Indefinite-Lived Intangible Assets

if indicators of impairment are present. The Company evaluates goodwill for impairment annually as of

October

or more frequently when an event occurs or circumstances change that indicates the carrying value

may

not be recoverable. The Company has the option to assess goodwill for impairment by

first

two

-step goodwill impairment test. In the

first

second

step is performed. When required, the

second

one

second

step of the goodwill impairment test.

The Company performed the required annual impairment tests for goodwill and other indefinite-lived intangible assets for the fiscal years

2016,

2015

and

2014,

and found no impairment following the

2016

and

2014

tests.

There were no reporting units with a carrying value at-risk of exceeding fair value as of the

October

31,

2016

impairment test date.

After performing the impairment tests for fiscal year

2015,

he Company determined that the fair value of the Ottomotores reporting unit was less than its carrying value, resulting in a non-cash goodwill impairment charge in the

fourth

quarter of

2015

$4,611

to write-down the balance of the Ottomotores goodwill. The decrease in fair value of the Ottomotores reporting unit was due to several factors in the

second

half of

2015:

2015

terminal growth rate and a

15.7%

discount rate.

Other indefinite-lived intangible assets consist of

October

of each year.

In the

fourth

quarter of

2015,

the Company

two

year remaining useful life for the impacted tradenames, causing the fair value to be less than the carrying value using the relief-from-royalty approach in a discounted cash flow analysis. As such, a

$36,076

non-cash impairment charge was recorded to write-down the impacted tradenames to net realizable value.

Other than the impairment charges discussed above, the Company found no other impairment when performing the required annual

impairment tests for goodwill and other indefinite-lived intangible assets for fiscal year

2015.

There can be no assurance that future impairment tests will not result in a charge to earnings.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of

Long-Lived Assets

The Company periodically evaluates the carrying value of long-lived asset

s (excluding goodwill and indefinite-lived tradenames). Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount

may

Debt, Policy [Policy Text Block]

Debt Issuance Costs

Debt discounts and d

$3,939,

$5,429,

and

$6,615

of deferred financing costs and original issue discount were amortized to interest expense during fiscal years

2016,

2015

and

2014,

respectively. Excluding the impact of any future long-term debt issuances or prepayments, estimated amortization expense for the next

five

years is as follows:

2017

$2,516;

2018

$4,314;

2019

$4,466;

2020

$4,420;

2021

$4,419.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company is

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The Company provides for certain estimated sales

programs, discounts and incentive expenses which are recognized as a reduction of sales.

Shipping and Handling Cost, Policy [Policy Text Block]

Shipping and Handling Costs

Shipping and handling costs billed to customers are included in net sales, and the related costs are included in cost of goods sold in the consolidated statements of comprehensive income.

Advertising Costs, Policy [Policy Text Block]

Advertising and Co-Op Advertising

Expenditures for advertising, included in selling and service expenses in the consolidated statements of comprehensive income, are expensed as incurred. Total

expenditures for advertising were

$45,488,

$39,258,

and

$32,352

for the years ended

December

31,

2016,

2015,

and

2014,

respectively.

Research and Development Expense, Policy [Policy Text Block]

Research and Development

The Company expenses research and development costs as incurred. Total expenditures incurred for research and development

were

$37,229,

$32,922,

and

$31,494

for the years ended

December

31,

2016,

2015

and

2014,

respectively.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation and Transactions

Balance sheet amounts for non-U.S. Dollar functional currency businesses

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

The Financial Accounting Standards Board (FASB) Accounting Standards Update (

ASC)

820

10,

Fair Value Measurement

820

three

-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level

observable inputs such as quoted prices in active markets; (Level

inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level

unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts

$903,673,

was approximately

$904,780

(Level

December

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

“Derivative Instruments and Hedging Activities,” to the consolidated financial statements. The fair value of all derivative contracts is classified as Level

The valuation

820

10.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of the consolidated financial statements in conformity with

Derivatives, Policy [Policy Text Block]

Derivative Instruments and Hedging Activities

The Company records

all derivatives in accordance with ASC

815,

Derivatives and Hedging

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements

May

2014,

the FASB issued ASU

2014

09,

Revenue from Contracts with Customers

five

-step process that entities should follow in order to achieve that core principal. ASU

2014

09,

as amended by ASU

2015

14,

Revenue from Contracts with Customers (Topic

606):

eferral of the Effective Date

, ASU

2016

08,

Revenue from Contracts with Customers (Topic

606):

Principal versus Agent Considerations

, ASU

2016

10,

Revenue from Contracts with Customers (Topic

606):

Identifying Performance Obligations and Licensing

ASU

2016

12,

Revenue from Contracts with Customers (Topic

606):

Narrow-Scope Improvements and Practical Expedients

, and ASU

2016

20,

Technical

Corrections and Improvements to Topic

606,

Revenue from Contracts with Customers

, becomes effective for the Company in

2018.

may

February

2016,

the FASB issued ASU

2016

02,

Leases

2019,

with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on its results of operations and financial position.

March

2016,

the FASB issued ASU

2016

09,

Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting

2017,

August

2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments

2018,

with early adoption permitted. The Company does not believe that this guidance will have a significant impact on its presentation of the statement of cash flows.

January

2017,

the FASB issued ASU

2017

04,

Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment

. This guidance is being issued to simplify the subsequent measurement of goodwill by eliminating Step

2020.

Early adoption is permitted for goodwill impairment tests performed after

January

2017.

The Company is currently assessing the impact the adoption will have on its results of operations and financial position.

In the

first

quarter of

2016,

the Company adopted ASU

2015

03,

Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs

. As a result, the Company adjusted the impacted line items in the

December

31,

2015

consolidated balance sheet to conform to the current period’s presentation; decreasing both the Deferred financing costs, net and Long-term borrowings and capital lease obligations line items by

$12,965.

Also in the

first

quarter of

2016,

the Company adopted ASU

2015

17,

Income Taxes: Balance Sheet Classification of Deferred Taxes

. As a result, the Company adjusted the impacted line items in the

December

31,

2015

consolidated balance sheet to conform to the current period’s presentation; decreasing the Deferred income taxes line item within current assets by

$29,355,

increasing the Deferred income taxes line item within noncurrent assets by

$28,139,

and decreasing the Deferred income taxes line within noncurrent liabilities by

$1,216.

’s consolidated financial statements.

Note 3 - Acquisitions (Tables)

12 Months Ended

Dec. 31, 2016

Redeemable Noncontrolling Interest [Table Text Block]

	Year Ended
	December 31, 2016
Beginning Balance - January 1	$	-
Noncontrolling interest of Pramac		34,253
Net income		100
Foreign currency translation		(2,124	)
Redemption value adjustment		909
Ending Balance - December 31	$	33,138

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	March 1, 2016
Accounts receivable	$	51,289
Inventories		39,889
Property and equipment		19,138
Intangible assets		34,471
Goodwill		46,202
Other assets		7,698
Total assets acquired		198,687

Short-term borrowings		21,105
Accounts payable		40,270
Long-term debt and capital lease obligations (including current portion)		18,599
Other liabilities		23,521
Redeemable noncontrolling interest		34,253
Noncontrolling interest		53
Net assets acquired	$	60,886

Business Acquisition, Pro Forma Information [Table Text Block]

	Year Ended December 31,
	2016		2015		2014
Net Sales:
As reported	$	1,444,453	$	1,317,299	$	1,460,919
Pro forma		1,473,799		1,556,459		1,776,843

Net income attributable to Generac Holdings Inc.:
As reported	$	98,788	$	77,747	$	174,613
Pro forma		100,907		78,618		174,926

Net income attributable to Generac Holdings Inc. per common share - diluted
As reported	$	1.50	$	1.12	$	2.49
Pro forma		1.53		1.14		2.49

Note 5 - Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Foreign Currency Translation Adjustments			Defined Benefit Pension Plan			Unrealized Gain (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		(18,545	)		(273	)		535			(18,283	)
Amounts reclassified from AOCL		-			595			-			595
Net current-period other comprehensive income (loss)		(18,545	)		322			535			(17,688	)
Ending Balance – December 31, 2016	$	(28,047	)	$	(11,040	)	$	(1,076	)	$	(40,163	)

	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 income (loss) before reclassifications		(7,624	)		1,105			(965	)		(7,484	)
Amounts reclassified from AOCL		-			776			-			776
Net current-period other comprehensive income (loss)		(7,624	)		1,881			(965	)		(6,708	)
Ending Balance – December 31, 2015	$	(9,502	)	$	(11,362	)	$	(1,611	)	$	(22,475	)

Note 6 - Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Net Sales
	Year Ended December 31,
Reportable Segments	2016		2015		2014
Domestic	$	1,173,559	$	1,204,589	$	1,343,367
International		270,894		112,710		117,552
Total	$	1,444,453	$	1,317,299	$	1,460,919

	Adjusted EBITDA
	Year Ended December 31,
	2016			2015			2014
Domestic	$	261,428		$	254,882		$	322,769
International		16,959			15,934			14,514
Total adjusted EBITDA	$	278,387		$	270,816		$	337,283

Interest expense		(44,568	)		(42,843	)		(47,215	)
Depreciation and amortization		(54,418	)		(40,333	)		(34,730	)
Non-cash write-down and other adjustments (1)		(357	)		(3,892	)		3,853
Non-cash share-based compensation expense (2)		(9,493	)		(8,241	)		(12,612	)
Tradename and goodwill impairment (3)		-			(40,687	)		-
Loss on extinguishment of debt (4)		(574	)		(4,795	)		(2,084	)
Gain (loss) on change in contractual interest rate (5)		(2,957	)		(2,381	)		16,014
Transaction costs and credit facility fees (6)		(2,442	)		(2,249	)		(1,851	)
Business optimization expenses (7)		(7,316	)		(1,947	)		-
Other		120			(465	)		(296	)
Income before provision for income taxes	$	156,382		$	122,983		$	258,362

	Assets
	Year Ended December 31,
	2016		2015		2014
Domestic	$	1,521,665	$	1,605,043	$	1,672,336
International		340,019		173,592		192,083
Total	$	1,861,684	$	1,778,635	$	1,864,419

	Depreciation and Amortization
	Year Ended December 31,
	2016		2015		2014
Domestic	$	42,346	$	35,327	$	29,410
International		12,072		5,006		5,320
Total	$	54,418	$	40,333	$	34,730

	Capital Expenditures
	Year Ended December 31,
	2016		2015		2014
Domestic	$	26,936	$	29,368	$	33,976
International		3,531		1,283		713
Total	$	30,467	$	30,651	$	34,689

Revenue from External Customers by Products and Services [Table Text Block]

	Net Sales
	Year Ended December 31,
Product Classes	2016		2015		2014
Residential products	$	772,436	$	673,764	$	722,206
Commercial & industrial products		557,532		548,440		652,216
Other		114,485		95,095		86,497
Total	$	1,444,453	$	1,317,299	$	1,460,919

Note 7 - Balance Sheet Details (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Inventory, Current [Table Text Block]

	December 31,
	2016		2015

Raw material	$	218,911	$	179,769
Work-in-process		2,950		2,567
Finished goods		127,870		143,039
Total	$	349,731	$	325,375

Property, Plant and Equipment [Table Text Block]

	December 31,
	2016			2015

Land and improvements	$	12,079		$	8,553
Buildings and improvements		122,747			104,774
Machinery and equipment		81,687			72,280
Dies and tools		23,269			20,066
Vehicles		1,474			1,244
Office equipment and systems		66,929			29,395
Leasehold improvements		2,319			3,338
Construction in progress		8,654			30,482
Gross property and equipment		319,158			270,132
Accumulated depreciation		(106,365	)		(85,919	)
Total	$	212,793		$	184,213

Note 8 - Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Goodwill [Table Text Block]

	Domestic		International			Total
Balance at December 31, 2014	$	582,686	$	52,879		$	635,565
Acquisitions of businesses, net		38,765		-			38,765
Impairment		-		(4,611	)		(4,611	)
Balance at December 31, 2015		621,451		48,268			669,719
Acquisitions of businesses, net		-		46,202			46,202
Foreign currency translation		-		(11,281	)		(11,281	)
Balance at December 31, 2016	$	621,451	$	83,189		$	704,640

	Year Ended December 31, 2016							Year Ended December 31, 2015
	Gross		Accumulated Impairment			Net		Gross		Accumulated Impairment			Net
Domestic	$	1,124,644	$	(503,193	)	$	621,451	$	1,124,644	$	(503,193	)	$	621,451
International		87,800		(4,611	)		83,189		52,879		(4,611	)		48,268
Total	$	1,212,444	$	(507,804	)	$	704,640	$	1,177,523	$	(507,804	)	$	669,719

Schedule Of Intangible Assets [Table Text Block]

	Weighted Average		December 31, 2016							December 31, 2015
	Amortization Years		Gross		Accumulated Amortization			Net Book Value		Gross		Accumulated Amortization			Net Book Value
Finite-lived intangible assets:
Tradenames		8	$	50,742	$	(20,189	)	$	30,553	$	43,252	$	(10,516	)	$	32,736
Customer lists		9		333,935		(288,623	)		45,312		314,600		(275,287	)		39,313
Patents		14		130,099		(82,038	)		48,061		126,491		(72,719	)		53,772
Unpatented technology		15		13,169		(11,771	)		1,398		13,169		(11,628	)		1,541
Software		-		1,046		(1,046	)		-		1,046		(1,042	)		4
Non-compete/other		7		2,513		(986	)		1,527		1,731		(508	)		1,223
Total finite-lived intangible assets			$	531,504	$	(404,653	)	$	126,851	$	500,289	$	(371,700	)	$	128,589
Indefinite-lived tradenames				128,321		-			128,321		128,321		-			128,321
Total intangible assets			$	659,825	$	(404,653	)	$	255,172	$	628,610	$	(371,700	)	$	256,910

Note 9 - Product Warranty Obligations (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Product Warranty Liability [Table Text Block]

	Year Ended December 31,
	2016			2015			2014
Balance at beginning of period	$	30,197		$	30,909		$	33,734
Product warranty reserve assumed in acquisition		840			351			360
Payments		(18,691	)		(21,686	)		(20,975	)
Provision for warranty issued		19,148			20,823			22,890
Changes in estimates for pre-existing warranties		201			(200	)		(5,100	)
Balance at end of period	$	31,695		$	30,197		$	30,909

	Year Ended December 31,
	2016			2015			2014
Balance at beginning of period	$	28,961		$	27,193		$	23,092
Deferred revenue contracts assumed in acquisition		-			291			-
Deferred revenue contracts issued		7,733			5,978			7,343
Amortization of deferred revenue contracts		(5,614	)		(4,501	)		(3,242	)
Balance at end of period	$	31,080		$	28,961		$	27,193

Product Warranty Obligations Included In Consolidated Balance Sheet [Table Text Block]

	December 31,
	2016		2015
Product warranty liability
Current portion - other accrued liabilities	$	20,763	$	21,726
Long-term portion - other long-term liabilities		10,932		8,471
Total	$	31,695	$	30,197

Deferred revenue related to extended warranties
Current portion - other accrued liabilities	$	6,728	$	6,026
Long-term portion - other long-term liabilities		24,352		22,935
Total	$	31,080	$	28,961

Note 10 - Credit Agreements (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Short-term Debt [Table Text Block]

	December 31,
	2016		2015
ABL facility	$	-	$	-
Other lines of credit		31,198		8,594
Total	$	31,198	$	8,594

Schedule of Long-term Debt Instruments [Table Text Block]

	December 31,
	2016			2015
Term loan	$	929,000		$	954,000
Original issue discount and deferred financing costs		(26,677	)		(29,905	)
ABL facility		100,000			100,000
Capital lease obligation		4,647			1,694
Other		14,753			12,000
Total		1,021,723			1,037,789
Less: current portion of debt		14,399			500
Less: current portion of capital lease obligation		566			157
Total	$	1,006,758		$	1,037,132

Schedule of Maturities of Long-term Debt [Table Text Block]

201 7	$	14,965
201 8		745
201 9		639
20 20		100,547
After 20 20		931,504
Total	$	1,048,400

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Note 13 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$	11,717		$	13,614		$	38,161
State		2,047			1,966			1,645
Foreign		4,460			3,588			5,701
		18,224			19,168			45,507
Deferred:
Federal		41,264			31,869			42,474
State		3,029			1,387			(3,134	)
Foreign		(5,585	)		(7,326	)		(1,462	)
		38,708			25,930			37,878
Change in valuation allowance		638			138			364
Provision for income taxes	$	57,570		$	45,236		$	83,749

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	2016			2015
Deferred tax assets:
Accrued expenses	$	22,758		$	18,982
Deferred revenue		10,645			9,389
Inventories		10,159			9,772
Pension obligations		7,512			7,684
Stock-based compensation		7,291			7,974
Operating loss and credit carryforwards		20,927			15,677
Other		2,822			2,842
Valuation allowance		(4,362	)		(1,523	)
Total deferred tax assets		77,752			70,797

Deferred tax liabilitites:
Goodwill and intangible assets		58,133			12,455
Depreciation		25,194			19,507
Debt refinancing costs		7,193			7,732
Prepaid expenses		1,173			1,241
Total deferred tax liabilities		91,693			40,935

Net deferred tax assets (liabilities)	$	(13,941	)	$	29,862

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	December 31,
	2016		2015
Unrecognized tax benefit, beginning of period	$	7,239	$	6,394
Increase in unrecognized tax benefit for positions taken in current period		704		845
Unrecognized tax benefit, end of period	$	7,943	$	7,239

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended December 31,
	2016			2015			2014
U.S. statutory rate		35.0	%		35.0	%		35.0	%
State taxes		4.1			4.1			3.1
Research and development credits		(1.0	)		(2.3	)		(5.0	)
Other		(1.3	)		-			(0.7	)
Effective tax rate		36.8	%		36.8	%		32.4	%

Note 14 - Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

	Year Ended December 31,
	201 6			201 5

Accumulated benefit obligation at end of period	$	65,956		$	63,894

Change in projected benefit obligation
Projected benefit obligation at beginning of period	$	63,894		$	68,376
Interest cost		2,747			2,681
Net actuarial loss (gain)		1,363			(5,254	)
Benefits paid		(2,048	)		(1,909	)
Projected benefit obligation at end of period	$	65,956		$	63,894

Change in plan assets
Fair value of plan assets at beginning of period	$	43,985		$	45,452
Actual return (loss) on plan assets		3,820			(384	)
Company contributions		731			826
Benefits paid		(2,048	)		(1,909	)
Fair value of plan assets at end of period	$	46,488		$	43,985

Funded status: accrued pension liability included in other long-term liabilities	$	(19,468	)	$	(19,909	)

Amounts recognized in accumulated other comprehensive loss
Net actuarial loss, net of tax	$	(11,040	)	$	(11,362	)

Schedule of Net Benefit Costs [Table Text Block]

	Year E nded December 31,
	201 6			201 5			201 4
Interest cost	$	2,747		$	2,681		$	2,591
Expected return on plan assets		(2,868	)		(3,041	)		(2,933	)
Amortization of net loss		941			1,228			106
Net periodic pension (benefit) cost	$	820		$	868		$	(236	)

Schedule of Assumptions Used [Table Text Block]

	December 31,
	201 6			201 5
Discount rate – salaried pension plan		4.14	%		4.36	%
Discount rate – hourly pension plan		4.16	%		4.39	%
Rate of compensation increase (1)		n/a			n/a

Schedule of Allocation of Plan Assets [Table Text Block]

				December 31, 201 6					December 31, 201 5
Asset Category	Target			Dollars		%			Dollars		%
Fixed Income		20	%	$	7,812		17	%	$	8,571		19	%
Domestic equity		49	%		19,615		42	%		20,479		47	%
International equity		21	%		13,466		29	%		9,687		22	%
Real estate		10	%		5,595		12	%		5,248		12	%
Total		100	%	$	46,488		100	%	$	43,985		100	%

Schedule of Fair Value of Plan Assets [Table Text Block]

	Total		Quoted Prices in Active Markets for Identical A sset (L evel 1)		Significant Observable I nputs (L evel 2)		Significant U nobservable I nputs (L evel 3)
Mutual fund s	$	37,860	$	37,860	$	–	$	–
Other investments		8,628		–		–		8,628
Total	$	46,488	$	37,860	$	–	$	8,628

	Total		Quoted Prices in Active Markets for Identical A sset (L evel 1)		Significant O b servable I nputs (L evel 2)		Significant Unobservable I nputs (L evel 3)
Mutual fund s	$	40,310	$	40,310	$	–	$	–
Other investment s		3,675		–		–		3,675
Total	$	43,985	$	40,310	$	–	$	3,675

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Year Ended December 31,
	2016		2015
Balance at beginning of period	$	3,675	$	3,185
Purchases		4,400		408
Realized gains		553		82
Balance at end of period	$	8,628	$	3,675

Schedule of Expected Benefit Payments [Table Text Block]

201 7	$	2,258
201 8		2,354
201 9		2,430
20 20		2,556
202 1		2,692
2022 – 2026		16,021

Net periodic Benefit Costs [Member]

Schedule of Assumptions Used [Table Text Block]

	Y ear E nded December 31,
	201 6			201 5			201 4
Discount rate		4.39	%		3.99	%		5.01	%
Expected long-term rate of return on plan assets		6.62	%		6.75	%		6.88	%
Rate of compensation increase (1)		n/a			n/a			n/a

Note 15 - Share Plans (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	201 6			201 5			201 4
Weighted average grant date fair value	$	13.77		$	19.07		$	26.35

Assumptions:
Expected stock price volatility		41	%		41	%		45	%
Risk free interest rate		1.31	%		1.72	%		1.90	%
Expected annual dividend per share	$	-		$	-		$	-
Expected life of options (years)		6.25			6.25			6.25

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value ($ in thousands)

Outstanding as of December 31, 2013		2,937,301		$	5.74		9.5	$	148,369
Granted		187,189			57.21
Exercised		(549,282	)		3.44
Expired		(259	)		15.94
Forfeited		(32,810	)		12.68
Outstanding as of December 31, 2014		2,542,139			9.94		8.5	$	96,518

Granted		287,165			45.18
Exercised		(604,088	)		3.79
Expired		(6,409	)		50.11
Forfeited		(90,793	)		37.27
Outstanding as of December 31, 2015		2,128,014			15.15		7.7	$	40,271

Granted		398,313			33.24
Exercised		(995,469	)		2.89
Forfeited		(47,894	)		37.41
Outstanding as of December 31, 2016		1,482,964			27.49		7.5	$	23,840

Exercisable as of December 31, 2016		787,654			17.64		6.7	$	19,897

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

	Shares			Weighted- Average Grant- Date Fair Value

Non-vested as of December 31, 2013		304,406		$	29.68
Granted		115,473			54.35
Vested		(105,123	)		28.31
Forfeited		(47,472	)		42.31
Non-vested as of December 31, 2014		267,284			38.72

Granted		193,117			41.31
Vested		(183,362	)		32.56
Forfeited		(33,999	)		47.77
Non-vested as of December 31, 2015		243,040			44.16

Granted		232,295			33.56
Vested		(95,858	)		41.93
Forfeited		(18,074	)		38.30
Non-vested as of December 31, 2016		361,403			38.18

Note 17 - Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Table Text Block]

	Quarters Ended 201 6
	Q1		Q2		Q3		Q4
Net sales	$	286,535	$	367,376	$	373,121	$	417,421
Gross profit		98,060		124,147		137,772		154,127
Operating income		26,964		44,082		56,340		77,231
Net income attributable to Generac Holdings Inc.		10,208		20,888		26,183		41,509
Net income attributable to common shareholders per common share - basic:	$	0.15	$	0.32	$	0.41	$	0.64
Net income attributable to common shareholders per common share - diluted:	$	0.15	$	0.31	$	0.40	$	0.64

	Quarters Ended 201 5
	Q1		Q2		Q3		Q4
Net sales	$	311,818	$	288,360	$	359,291	$	357,830
Gross profit		102,603		95,897		130,326		131,124
Operating income		44,911		39,467		67,867		27,316
Net income attributable to Generac Holdings Inc.		19,685		14,844		34,036		9,182
Net income attributable to common shareholders per common share - basic:	$	0.29	$	0.22	$	0.50	$	0.14
Net income attributable to common shareholders per common share - diluted:	$	0.28	$	0.21	$	0.49	$	0.14

Note 2 - Significant Accounting Policies (Details Textual)
$ in Thousands

3 Months Ended

12 Months Ended

Mar. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Depreciation

$ 21,465

$ 16,742

$ 13,706

Goodwill, Impairment Loss

$ 4,611

Financial Assumptions Including Sales Growth, Terminal Growth Rate

3.00%

Financial Assumptions Including Sales Growth, Discount Rate

15.70%

Amortization of Financing Costs and Debt Discount Premium

3,939

$ 5,429

6,615

Deferred Costs Amortization Expense, Next Twelve Months

2,516

Deferred Costs Amortization Expense, Year Two

4,314

Deferred Costs Amortization Expense, Year Three

4,466

Deferred Costs Amortization Expense, Year Four

4,420

Deferred Costs Amortization Expense, Year Five

4,419

Advertising Expense

45,488

39,258

32,352

Research and Development Expense

37,229

32,922

31,494

Long-term Debt

903,673

Goodwill and Intangible Asset Impairment

40,687

^[1]

$ 0

Decrease in Deferred Financing Costs [Member] | December 31, 2015 [Member]

Decrease in Deferred Income Taxes Within Current Assets [Member] | December 31, 2015 [Member]

$ 12,965

Increase in Deferred Income Taxes within Noncurrent Assets [Member] | December 31, 2015 [Member]

29,355

Decrease in Deferred Income Taxes within Noncurrent Liabilities [Member] | December 31, 2015 [Member]

28,139

Fair Value, Inputs, Level 2 [Member]

$ 1,216

Debt Instrument, Fair Value Disclosure

$ 904,780

Trade Names [Member]

Finite-Lived Intangible Asset, Useful Life

2 years

Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)

$ 36,076

$ (36,076)

Accounts Receivable [Member] | Customer Concentration Risk [Member]

Number of Major Customers

Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member]

Concentration Risk, Percentage

9.00%

11.00%

Sales Revenue, Net [Member] | Customer Concentration Risk [Member]

Concentration Risk, Percentage

7.00%

8.00%

Number of Major Customers

[1]	Represents the 2015 impairment of certain tradenames due to a change in brand strategy to transition and consolidate various brands to the Generac tradename ($36,076) and the impairment of goodwill related to the Ottomotores reporting unit ($4,611)

Note 2 - Significant Accounting Policies - Property and Equipment Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2016
Land Improvements [Member] \| Minimum [Member]
Property and equipment, estimated useful lives (Year)	15 years
Land Improvements [Member] \| Maximum [Member]
Property and equipment, estimated useful lives (Year)	20 years
Building and Building Improvements [Member] \| Minimum [Member]
Property and equipment, estimated useful lives (Year)	10 years
Building and Building Improvements [Member] \| Maximum [Member]
Property and equipment, estimated useful lives (Year)	40 years
Machinery and Equipment [Member] \| Minimum [Member]
Property and equipment, estimated useful lives (Year)	3 years
Machinery and Equipment [Member] \| Maximum [Member]
Property and equipment, estimated useful lives (Year)	10 years
Dies and Tools [Member] \| Minimum [Member]
Property and equipment, estimated useful lives (Year)	3 years
Dies and Tools [Member] \| Maximum [Member]
Property and equipment, estimated useful lives (Year)	10 years
Vehicles [Member] \| Minimum [Member]
Property and equipment, estimated useful lives (Year)	3 years
Vehicles [Member] \| Maximum [Member]
Property and equipment, estimated useful lives (Year)	6 years
Office Equipment [Member] \| Minimum [Member]
Property and equipment, estimated useful lives (Year)	3 years
Office Equipment [Member] \| Maximum [Member]
Property and equipment, estimated useful lives (Year)	15 years
Leasehold Improvements [Member] \| Minimum [Member]
Property and equipment, estimated useful lives (Year)	2 years
Leasehold Improvements [Member] \| Maximum [Member]
Property and equipment, estimated useful lives (Year)	20 years

Note 3 - Acquisitions (Details Textual) $ in Thousands				3 Months Ended		12 Months Ended
Note 3 - Acquisitions (Details Textual) $ in Thousands	Mar. 01, 2016 USD ($)	Aug. 01, 2015 USD ($)	Oct. 01, 2014 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Payments to Acquire Businesses, Net of Cash Acquired						$ 61,386	$ 73,782	$ 61,196
Number of Countries Where Product is Sold by Subsidiary						150
Goodwill				$ 669,719		$ 704,640	$ 669,719	$ 635,565
Pramac [Member]
Business Acquisition, Percentage of Voting Interests Acquired	65.00%
Payments to Acquire Businesses, Net of Cash Acquired	$ 60,886
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
Noncontrolling Interest, Term of Put Option	5 years
Noncontrolling Interest, Term of Put Option in which Option Price is Fixed	2 years
Goodwill	$ 46,202
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
MAC Inc. [Member]
Payments to Acquire Businesses, Net of Cash Acquired			$ 53,747
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill			49,378
Goodwill			$ 25,898
Increase (Decrease) in Intangible Assets, Non-current					$ (4,229)
Goodwill, Period Increase (Decrease)					$ 2,481

Note 3 - Acquisitions - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Redemption value adjustment	$ (909)
Redeemable Noncontrolling Interest [Member]
Beginning Balance - January 1
Noncontrolling interest of Pramac	34,253
Net income	100
Foreign currency translation	(2,124)
Redemption value adjustment	909
Ending Balance - December 31	$ 33,138

Note 3 - Acquisitions - Preliminary Price Allocation (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 01, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill	$ 704,640		$ 669,719	$ 635,565
Pramac [Member]
Accounts receivable		$ 51,289
Inventories		39,889
Property and equipment		19,138
Intangible assets		34,471
Goodwill		46,202
Other assets		7,698
Total assets acquired		198,687
Short-term borrowings		21,105
Accounts payable		40,270
Long-term debt and capital lease obligations (including current portion)		18,599
Other liabilities		23,521
Redeemable noncontrolling interest		34,253
Noncontrolling interest		53
Net assets acquired		$ 60,886

Note 3 - Acquisitions - Unaudited Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
As reported	$ 417,421	$ 373,121	$ 367,376	$ 286,535	$ 357,830	$ 359,291	$ 288,360	$ 311,818	$ 1,444,453	$ 1,317,299	$ 1,460,919
Pro forma									1,473,799	1,556,459	1,776,843
Net income attributable to Generac Holdings Inc.	$ 41,509	$ 26,183	$ 20,888	$ 10,208	$ 9,182	$ 34,036	$ 14,844	$ 19,685	98,788	77,747	174,613
Pro forma									$ 100,907	$ 78,618	$ 174,926
As reported (in dollars per share)	$ 0.64	$ 0.40	$ 0.31	$ 0.15	$ 0.14	$ 0.49	$ 0.21	$ 0.28	$ 1.50	$ 1.12	$ 2.49
Pro forma (in dollars per share)									$ 1.53	$ 1.14	$ 2.49

Note 4 - Derivative Instruments and Hedging Activities (Details Textual) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2013	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Commodity Contract [Member]
Derivative, Number of Instruments Held		1	1
Commodity Contract [Member] \| Not Designated as Hedging Instrument [Member] \| Cost of Sales [Member]
Derivative, Gain (Loss) on Derivative, Net		$ 739	$ (1,909)	$ (629)
Commodity Contract [Member] \| Maximum [Member]
Derivative, Remaining Maturity		1 year 180 days
Foreign Exchange Contract [Member]
Derivative, Number of Instruments Held		38	6
Foreign Exchange Contract [Member] \| Not Designated as Hedging Instrument [Member] \| Cost of Sales [Member]
Derivative, Gain (Loss) on Derivative, Net		$ (385)	$ (624)	(149)
Foreign Exchange Contract [Member] \| Maximum [Member]
Derivative, Remaining Maturity		1 year
Interest Rate Swap [Member]
Number of New Contracts Entered	2
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		$ 535	(965)	(1,420)
Commodity and Foreign Currency Contracts [Member]
Derivative Assets (Liabilities), Net Fair Value of Derivative Contracts, Excluding Impact of Credit Risk		(1,295)	(3,248)
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net		$ 354	$ (2,533)	$ (778)

Note 4 - Derivative Instruments and Hedging Activities - Fair Value of Derivatives (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Commodity Contract [Member]
Fair Value of Derivatives	$ 623	$ (400)
Foreign Exchange Contract [Member]
Fair Value of Derivatives	(150)	(171)
Interest Rate Swap [Member]
Fair Value of Derivatives	$ (1,739)	$ (2,618)

Note 5 - Accumulated Other Comprehensive Loss (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Other Comprehensive Income (Loss), before Reclassifications, before Tax	$ (412)	$ 1,829
Other Comprehensive Income (Loss) before Reclassifications, Tax	(139)	724
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	941	1,228
Reclassification from AOCI, Current Period, Tax	346	452
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Other Comprehensive Income (Loss), before Reclassifications, before Tax	876	(1,574)
Other Comprehensive Income (Loss) before Reclassifications, Tax	$ 341	$ (609)

Note 5 - Accumulated Other Comprehensive Loss - Disclosure of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Balance	$ (22,475)
Net current-period other comprehensive income (loss)	(17,688)	$ (6,708)	$ (13,352)
Balance	(40,163)	(22,475)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	(9,502)	(1,878)
Other comprehensive income (loss) before reclassifications	(18,545)	(7,624)
Amounts reclassified from AOCL
Net current-period other comprehensive income (loss)	(18,545)	(7,624)
Balance	(28,047)	(9,502)	(1,878)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(11,362)	(13,243)
Other comprehensive income (loss) before reclassifications	(273)	1,105
Amounts reclassified from AOCL	595	776
Net current-period other comprehensive income (loss)	322	1,881
Balance	(11,040)	(11,362)	(13,243)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Balance	(1,611)	(646)
Other comprehensive income (loss) before reclassifications	535	(965)
Amounts reclassified from AOCL
Net current-period other comprehensive income (loss)	535	(965)
Balance	(1,076)	(1,611)	(646)
AOCI Attributable to Parent [Member]
Balance	(22,475)	(15,767)
Other comprehensive income (loss) before reclassifications	(18,283)	(7,484)
Amounts reclassified from AOCL	595	776
Net current-period other comprehensive income (loss)	(17,688)	(6,708)
Balance	$ (40,163)	$ (22,475)	$ (15,767)

Note 6 - Segment Reporting (Details Textual) $ in Thousands			3 Months Ended						9 Months Ended	12 Months Ended
Note 6 - Segment Reporting (Details Textual) $ in Thousands	Jul. 01, 2016	Jul. 01, 2015	Dec. 31, 2016	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2015 USD ($)	Sep. 30, 2015	Jun. 30, 2014	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015 USD ($)	Dec. 31, 2014
Number of Reportable Segments					1				2
Goodwill, Impairment Loss						$ 4,611					$ 4,611
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| UNITED STATES
Concentration Risk, Percentage										77.00%	85.00%	84.00%
Geographic Concentration Risk [Member] \| Net Assets, Geographic Area [Member] \| UNITED STATES
Concentration Risk, Percentage										87.00%	93.00%
Term Loan [Member]
Debt Instrument, Interest Rate, Increase (Decrease)				0.25%			0.25%	(0.25%)			0.25%	0.25%
Net Debt Leverage Ratio Not Achieved	3	3	3	3		3	3	3		3	3	3
Ottomotores [Member]
Goodwill, Impairment Loss											$ (4,611)
Trade Names [Member]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)						$ 36,076					$ (36,076)

Note 6 - Segment Reporting - Segment Information (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

As reported

$ 417,421

$ 373,121

$ 367,376

$ 286,535

$ 357,830

$ 359,291

$ 288,360

$ 311,818

$ 1,444,453

$ 1,317,299

$ 1,460,919

Total adjusted EBITDA

278,387

270,816

337,283

Interest expense

(44,568)

(42,843)

(47,215)

Depreciation and amortization

54,418

40,333

34,730

Non-cash write-down and other adjustments (1)

^[1]

(357)

(3,892)

3,853

Non-cash share-based compensation expense (2)

^[2]

(9,493)

(8,241)

(12,612)

Tradename and goodwill impairment (3)

(40,687)

^[3]

Loss on extinguishment of debt (4)

^[4]

(574)

(4,795)

(2,084)

Gain Loss on Change in Cash Flows Related to Debt

^[5]

(2,957)

(2,381)

16,014

Transaction costs and credit facility fees (6)

^[6]

(2,442)

(2,249)

(1,851)

Business optimization expenses (7)

^[7]

(7,316)

(1,947)

Other

120

(465)

(296)

Income before provision for income taxes

156,382

122,983

258,362

Assets

1,861,684

1,778,635

1,861,684

1,778,635

1,864,419

Capital Expenditures

30,467

30,651

34,689

Domestic [Member]

As reported

1,173,559

1,204,589

1,343,367

Total adjusted EBITDA

261,428

254,882

322,769

Depreciation and amortization

42,346

35,327

29,410

Assets

1,521,665

1,605,043

1,521,665

1,605,043

1,672,336

Capital Expenditures

26,936

29,368

33,976

International [Member]

As reported

270,894

112,710

117,552

Total adjusted EBITDA

16,959

15,934

14,514

Depreciation and amortization

12,072

5,006

5,320

Assets

$ 340,019

$ 173,592

340,019

173,592

192,083

Capital Expenditures

$ 3,531

$ 1,283

$ 713

[1]	Includes gains/losses on disposal of assets, unrealized mark-to-market adjustments on commodity contracts, and certain foreign currency and purchase accounting related adjustments.
[2]	Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods.
[3]	Represents the 2015 impairment of certain tradenames due to a change in brand strategy to transition and consolidate various brands to the Generac tradename ($36,076) and the impairment of goodwill related to the Ottomotores reporting unit ($4,611)
[4]	Represents the write-off of original issue discount and capitalized debt issuance costs due to voluntary debt prepayments.
[5]	For the year ended December 31, 2016, represents a non-cash loss in the third quarter 2016 relating to the continued 25 basis point increase in borrowing costs as a result of the credit agreement leverage ratio remaining above 3.0 times and expected to remain above 3.0 based on current projections. For the year ended December 31, 2015, represents a non-cash loss relating to a 25 basis point increase in borrowing costs as a result of the credit agreement leverage ratio rising above 3.0 times effective third quarter 2015 and expected to remain above 3.0 times based on projections at the time. For the year ended December 31, 2014 represents a non-cash gain relating to a 25 basis point reduction in borrowing costs as a result of the credit agreement leverage ratio falling below 3.0 times effective second quarter 2014 and expected to remain below 3.0 times based on projections at the time.
[6]	Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement; equity issuance, debt issuance or refinancing; together with certain fees relating to our senior secured credit facilities.
[7]	Represents charges relating to business optimization and restructuring costs.

Note 7 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Raw material	$ 218,911	$ 179,769
Work-in-process	2,950	2,567
Finished goods	127,870	143,039
Total	$ 349,731	$ 325,375

Note 7 - Balance Sheet Details - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property and equipment, gross	$ 319,158	$ 270,132
Accumulated depreciation	(106,365)	(85,919)
Total	212,793	184,213
Land and Land Improvements [Member]
Property and equipment, gross	12,079	8,553
Building and Building Improvements [Member]
Property and equipment, gross	122,747	104,774
Machinery and Equipment [Member]
Property and equipment, gross	81,687	72,280
Dies and Tools [Member]
Property and equipment, gross	23,269	20,066
Vehicles [Member]
Property and equipment, gross	1,474	1,244
Office Equipment [Member]
Property and equipment, gross	66,929	29,395
Leasehold Improvements [Member]
Property and equipment, gross	2,319	3,338
Construction in Progress [Member]
Property and equipment, gross	$ 8,654	$ 30,482

Note 8 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amortization of Intangible Assets	$ 32,953	$ 23,591	$ 21,024
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	27,856
Finite-Lived Intangible Assets, Amortization Expense, Year Two	19,511
Finite-Lived Intangible Assets, Amortization Expense, Year Three	17,816
Finite-Lived Intangible Assets, Amortization Expense, Year Four	17,743
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 15,958

Note 8 - Goodwill and Intangible Assets - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Balance		$ 669,719	$ 635,565
Acquisitions of businesses, net		46,202	38,765
Impairment	$ (4,611)		(4,611)
Balance	669,719	704,640	669,719
Foreign currency translation		(11,281)
Goodwill, gross				$ 1,212,444	$ 1,177,523
Accumulated impairment				(507,804)	(507,804)
Goodwill	669,719	669,719	635,565	704,640	669,719
Domestic [Member]
Balance		621,451	582,686
Acquisitions of businesses, net			38,765
Impairment
Balance	621,451	621,451	621,451
Foreign currency translation
Goodwill, gross				1,124,644	1,124,644
Accumulated impairment				(503,193)	(503,193)
Goodwill	621,451	621,451	582,686	621,451	621,451
International [Member]
Balance		48,268	52,879
Acquisitions of businesses, net		46,202
Impairment			(4,611)
Balance	48,268	83,189	48,268
Foreign currency translation		(11,281)
Goodwill, gross				87,800	52,879
Accumulated impairment				(4,611)	(4,611)
Goodwill	$ 48,268	$ 48,268	$ 52,879	$ 83,189	$ 48,268

Note 8 - Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-lived intangible assets, gross	$ 531,504	$ 500,289
Finite-lived intangible assets, accumulated amortization	(404,653)	(371,700)
Finite-lived intangible assets, net	126,851	128,589
Indefinite-lived tradenames, gross	128,321	128,321
Total intangible assets, gross	659,825	628,610
Total intangible assets, net	$ 255,172	256,910
Trade Names [Member]
Finite-lived intangible assets, useful life (Year)	8 years
Finite-lived intangible assets, gross	$ 50,742	43,252
Finite-lived intangible assets, accumulated amortization	(20,189)	(10,516)
Finite-lived intangible assets, net	$ 30,553	32,736
Customer Lists [Member]
Finite-lived intangible assets, useful life (Year)	9 years
Finite-lived intangible assets, gross	$ 333,935	314,600
Finite-lived intangible assets, accumulated amortization	(288,623)	(275,287)
Finite-lived intangible assets, net	$ 45,312	39,313
Patents [Member]
Finite-lived intangible assets, useful life (Year)	14 years
Finite-lived intangible assets, gross	$ 130,099	126,491
Finite-lived intangible assets, accumulated amortization	(82,038)	(72,719)
Finite-lived intangible assets, net	$ 48,061	53,772
Unpatented Technology [Member]
Finite-lived intangible assets, useful life (Year)	15 years
Finite-lived intangible assets, gross	$ 13,169	13,169
Finite-lived intangible assets, accumulated amortization	(11,771)	(11,628)
Finite-lived intangible assets, net	$ 1,398	1,541
Computer Software, Intangible Asset [Member]
Finite-lived intangible assets, useful life (Year)
Finite-lived intangible assets, gross	$ 1,046	1,046
Finite-lived intangible assets, accumulated amortization	(1,046)	(1,042)
Finite-lived intangible assets, net		4
Noncompete Agreements [Member]
Finite-lived intangible assets, useful life (Year)	7 years
Finite-lived intangible assets, gross	$ 2,513	1,731
Finite-lived intangible assets, accumulated amortization	(986)	(508)
Finite-lived intangible assets, net	$ 1,527	$ 1,223

Note 9 - Product Warranty Obligations - Reconciliation of Product Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Balance at beginning of period	$ 30,197	$ 30,909	$ 33,734
Product warranty reserve assumed in acquisition	840	351	360
Payments	(18,691)	(21,686)	(20,975)
Provision for warranty issued	19,148	20,823	22,890
Changes in estimates for pre-existing warranties	201	(200)	(5,100)
Balance at end of period	31,695	30,197	30,909
Balance at beginning of period	28,961	27,193	23,092
Deferred revenue contracts assumed in acquisition		291
Deferred revenue contracts issued	7,733	5,978	7,343
Amortization of deferred revenue contracts	(5,614)	(4,501)	(3,242)
Balance at end of period	$ 31,080	$ 28,961	$ 27,193

Note 9 - Product Warranty Obligations - Deferred Product Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current portion - other accrued liabilities	$ 20,763	$ 21,726
Long-term portion - other long-term liabilities	10,932	8,471
Total	31,695	30,197	$ 30,909	$ 33,734
Current portion - other accrued liabilities	6,728	6,026
Long-term portion - other long-term liabilities	24,352	22,935
Total	$ 31,080	$ 28,961	$ 27,193	$ 23,092

Note 10 - Credit Agreements (Details Textual)
$ in Thousands

1 Months Ended

3 Months Ended

12 Months Ended

Jul. 01, 2016

Jul. 01, 2015

Apr. 01, 2014

Nov. 30, 2016

USD ($)

May 31, 2015

USD ($)

Mar. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Sep. 30, 2014

USD ($)

Apr. 30, 2014

USD ($)

Dec. 31, 2016

USD ($)

Sep. 30, 2016

USD ($)

Dec. 31, 2015

USD ($)

Sep. 30, 2015

USD ($)

Jun. 30, 2014

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

May 31, 2013

USD ($)

Gain Loss on Change in Cash Flows Related to Debt

^[1]

$ (2,957)

$ (2,381)

$ 16,014

Short-term Debt

$ 31,198

$ 8,594

31,198

8,594

ABL Revolving Credit Facility [Member]

Line of Credit Facility, Maximum Borrowing Capacity

$ 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

Line of Credit Facility, Unused Capacity, Decrease In Commitment Fee Percentage

(0.50%)

Debt Issuance Costs, Net

$ 540

0.125%

Proceeds from Lines of Credit

$ 100,000

Long-term Line of Credit

100,000

Line of Credit Facility, Remaining Borrowing Capacity

$ 145,593

Base Rate [Member] | ABL Revolving Credit Facility [Member]

Adjusted LIBOR Rate [Member] | ABL Revolving Credit Facility [Member]

1.00%

Line of Credit Facility, Maximum Borrowing Capacity

2.00%

Term Loan [Member]

$ 1,200,000

Uncommitted Incremental Term Loan Facility

$ 300,000

Net Debt Leverage Ratio Threshold

Net Debt Leverage Ratio Achieved

Debt Instrument, Interest Rate, Increase (Decrease)

0.25%

(0.25%)

0.25%

Gain Loss on Change in Cash Flows Related to Debt

$ (2,957)

$ (2,381)

$ 16,014

Net Debt Leverage Ratio Not Achieved

Debt Issuance Costs, Net

$ 4,242

1,528

Debt Instrument, Fee Amount

315

Repayments of Long-term Debt

25,000

$ 100,000

$ 50,000

$ 25,000

$ 50,000

$ 12,000

Write off of Deferred Debt Issuance Cost

$ 574

$ 4,795

$ 2,084

Term Loan [Member] | Base Rate [Member]

Term Loan [Member] | Base Rate [Member] | Net Debt Leverage Ratio Threshold [Member]

1.75%

Term Loan [Member] | Adjusted LIBOR Rate [Member]

1.50%

Term Loan [Member] | Adjusted LIBOR Rate [Member] | Net Debt Leverage Ratio Threshold [Member]

2.75%

Term Loan [Member] | LIBOR Floor Rate [Member]

2.50%

0.75%

[1]

For the year ended December 31, 2016, represents a non-cash loss in the third quarter 2016 relating to the continued 25 basis point increase in borrowing costs as a result of the credit agreement leverage ratio remaining above 3.0 times and expected to remain above 3.0 based on current projections. For the year ended December 31, 2015, represents a non-cash loss relating to a 25 basis point increase in borrowing costs as a result of the credit agreement leverage ratio rising above 3.0 times effective third quarter 2015 and expected to remain above 3.0 times based on projections at the time. For the year ended December 31, 2014 represents a non-cash gain relating to a 25 basis point reduction in borrowing costs as a result of the credit agreement leverage ratio falling below 3.0 times effective second quarter 2014 and expected to remain below 3.0 times based on projections at the time.

Note 10 - Credit Agreements - Long-term Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Term loan	$ 929,000	$ 954,000
Original issue discount and deferred financing costs	(26,677)	(29,905)
ABL facility	100,000	100,000
Capital lease obligation	4,647	1,694
Other	14,753	12,000
Total	1,021,723	1,037,789
Less: current portion of debt	14,399	500
Less: current portion of capital lease obligation	566	157
Total	$ 1,006,758	$ 1,037,132