Eating my exercise calories?

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I have been using MFP for a week and a half now and have lost 3 lbs. This is my first time on the message boards and have been noticing people talking about "eating my exercise calories". I am a little confused by this. According to my height and weight proportions and to lose 2lbs a week, MFP set my caloric intake to 1200 a day. For example, one day last week I only burned 261 calories with the workout I did so does that mean I should eat an EXTRA 261 on top of my 1200?

confused.

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