Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share

8. Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share adjusts basic earnings per share for the effects of stock options, restricted common stock, warrants and other potentially dilutive financial instruments, only in the periods in which the effects are dilutive. The accounting standard pertaining to earnings per share precludes the calculation of diluted earnings per share when a net loss is presented. The following is a reconciliation of the weighted-average shares outstanding and calculation of basic and diluted earnings per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(in thousands, except for per share data)
Net income attributable to XO Group Inc.	$	3,138	$	2,916	$	3,535	$	2,211
Total weighted-average basic shares		24,488		29,495		25,004		30,667
Dilutive securities:
Restricted stock		456		519		453		566
Employee Stock Purchase Plan		12		12		10		10
Options/warrants		122		135		118		142
Total weighted-average diluted shares		25,078		30,161		25,585		31,385
Net income per share:
Basic	$	0.13	$	0.10	$	0.14	$	0.07
Diluted	$	0.13	$	0.10	$	0.14	$	0.07

The calculation of earnings per share excludes a weighted average number of stock options and restricted stock of 275 and 81,527 for the three and six months ended June 30, 2012, respectively, and 166,000 and 165,000 for the three and six months ended June 30, 2011, respectively, as including them in the calculation would be antidilutive because these securities were out of the money during the periods reflected.