Phyllis and Nick argued about Phyllis not divulging her knowledge of Sharon and Adam's relationship and about Phyllis' covert plan to catch Deacon. Phyllis claimed that what had truly upset Nick was his inability to save Sharon. Phyllis admitted that Jack had told her about Adam and Sharon, and she demanded to know how Nick found out about the couple. Phyllis guessed that Nick saw Sharon and Adam having sex, and she recalled that Nick had acted strangely the day of Daniel's arrest. Nick admitted that he had seen Adam and Sharon in bed, but he refused to elaborate. Nick claimed that both he and Phyllis could recall instances when they had not been truthful and up-front. Phyllis walked away after Nick said that without trust, they were back where they started.
At Crimson Lights, Cane and Lily took a break from shopping to enjoy coffee. Cane gave Lily a tree ornament to celebrate their first Christmas together as a couple. Later, Cane and Lily went to choose a Christmas tree. Cane noticed Neil nearby and suggested that he and Lily announce their good news about Mac's pregnancy. Lily opted to wait until Christmas Day. Lily added that along with Mac, Emily was an angel for helping her decide that she truly wanted a baby and for approving Mac as a surrogate. Cane kissed Lily and said she could handle the announcement however she wished as long as it made her happy.
Murphy and Katherine staffed a Christmas tree lot that benefited charity. Sharon and Adam stood nearby and observed Murphy and Katherine sharing a kiss while bantering cheerily with customers. Sharon directed Adam's attention to Murphy and Katherine and said, "They're so in sync. They're a team. How many people have something that special?" Adam kissed Sharon and insisted that he was very lucky, as well. Ashley approached Sharon and Adam and voiced delight about their burgeoning relationship. Adam and Sharon both agreed that their family and friends didn't readily accept them as a couple.
Neil joined Ashley and offered to help her select the perfect Christmas tree. Ashley noted that ranch staff had volunteered to choose a tree, but Ashley praised herself for being able to do things on her own. Neil and Ashley both agreed that they didn't enjoy people's expressions of pity for them because they were without partners during the holiday season. Nearby, Cane paid Katherine $100 for a tree priced at $75, but he remained mum after Katherine pressed him to divulge the results of the in vitro fertilization procedure performed on Mac. Katherine assured Cane that he would be okay no matter what happened.
Later, Billy arrived. Katherine hugged Billy and expressed relief that he'd been released from jail. Katherine supported Chloe's decision to divulge the name of the juror who'd leaked Victoria's testimony. Katherine told Billy he should thank Chloe for allowing him the freedom to spend the holidays with Delia.
Adam helped Sharon lug her chosen Christmas tree home. While Sharon searched the basement for a tree stand, Adam stuffed a gift into Sharon's stocking. When Sharon returned, she asked Adam what he'd been doing. Sharon surprised Adam by hanging a stocking, embroidered with his name, on the mantel next to hers and Noah's. Cassie's drawing of the Newman family distracted Adam as he watched Sharon proudly affixing his stocking to the family mantel.
Adam removed his coat as he approached Sharon and flung it onto the sofa table. Adam's coat sent Cassie's treasured drawing crashing to the floor. Sharon reacted in horror and knelt down to survey the damage. Adam immediately apologized, but Sharon warned Adam not to touch the broken glass. Adam punctured his finger on a shard and worried that he'd dripped blood on Cassie's crayon-drawn depiction of herself standing alongside her mother, father, and brother. Sharon ordered Adam to take care of his cut, and he left the room.
Sharon burst into tears as she remembered the day long before when Cassie presented the framed artwork to her mother. Sharon recalled that Cassie, prideful that Nick had framed the photo, remarked, "Having a family-that's the best thing." Nick entered through the open front door and heard Sharon sobbing. Nick knelt beside Sharon, placed him arms around her, and promised that they could fix the damage. Nick sounded as if he meant they could fix more than just the frame when he added, "We can fix this."
Adam, with his finger wrapped in gauze, reappeared near the entrance to Sharon's living room, but he paused for a moment when he overheard Nick comforting Sharon. Adam entered the room apologizing and, acting as if he didn't know, asked if Nick was present. After Sharon asked Adam about his hand, Nick surmised what had transpired and became enraged. Nick told Sharon that what Adam did wasn't an accident. Sharon vehemently defended Adam. Nick was not pleased when he noticed Adam's stocking hanging from the mantel.
Nick seemed defiantly unfazed as Sharon defended her decision to include Adam in every facet of her life. Nick interrupted Sharon and announced that he'd purchased a snowmobile as a gift for Noah. After Nick left, Sharon returned Cassie's drawing to its place on the sofa table. Adam volunteered to get another frame. Sharon assured Adam that she didn't believe that he'd purposely broken the frame. Sharon explained that when circumstances changed, people had to change along with them.
At the Newman Ranch, Cane and Neil realized that Ashley and Lily were taunting them when the women repeatedly ordered the men to reposition the tree Ashley chose for the sitting room. Neil invited Ashley, Abby, and Faith to his house for Christmas. Ashley initially turned down Neil's invitation, but she later accepted after Neil suggested that Ashley might find comfort celebrating Christmas with Colleen's best friend, Lily. Ashley took Faith downstairs after the baby awoke crying. Neil and Cane stepped out while Ashley and Lily admired Faith. Ashley asked if Mac was pregnant, but Lily explained that she wouldn't make an announcement until Christmas Day. Lily was pleased when she learned that Neil had invited Ashley and her family for Christmas. Lily and Cane happily entertained baby Faith while Ashley hung an ornament Traci sent on the tree.
In the sitting room at the Abbott mansion, Jack and Emily shared tender moments as they enjoyed the room's festive decorations. Emily kissed Jack goodbye, but he begged her not to leave. Jack pleaded with Emily to stay, so he could help nurse her injured elbow. Emily agreed to stay after Jack promised to serve her a hot toddy. While Jack and Emily sipped their drinks, Phyllis stormed in and announced that Jack was to blame for her having a crappy day.
Emily announced her presence and Phyllis stared Jack's guest down until Emily retreated to the kitchen to sweeten her drink with a touch of honey. Before Emily left, she sarcastically retorted, "A little tartness goes a long way." Phyllis shoved Jack menacingly and accused him of ruining her life. Phyllis berated Jack for trying to persuade Nick to save Sharon from Adam. Jack apologized for causing pain and turmoil in Nick's life. Phyllis didn't accept Jack's apology and walked out.
Emily returned. After admitting that she had overheard Phyllis' tirade, Emily strongly suggested that Jack establish boundaries in his relationships. Emily yawned and announced that she was sleepy. Jack seemed pleased when Emily agreed to stay. Emily looked relieved when Jack declared that he was letting go of his emotional baggage.
After Phyllis stormed out of Jack's house, she went alone to buy a Christmas tree. Phyllis told Murphy and Katherine that she'd promised Summer that she would return home with a tree. Phyllis considered choosing a large tree, but Murphy was concerned that Phyllis might not be able to handle the tree alone. Phyllis was surprised when she heard Nick announce, "She can get any tree she wants." Nick told Phyllis that he shouldn't have let her walk away after their argument. Phyllis insisted that they should pledge not to keep secrets. Phyllis cried that if Nick kept something from her again, she would be done with their marriage. Nick assured Phyllis that they could make their relationship work, but Phyllis seemed unconvinced even as Nick heartily embraced her.
J.T. stopped by the Chancellor mansion to talk to Mac about his strained relationship with Victoria. Mac served J.T. a glass of eggnog, and he thanked her for letting him stay for a while to clear his head. J.T. complained that Victoria pressured him to accompany her to Dubai, and she insisted she would take Reed with her. Mac claimed that Victoria needed a break after Billy printed exposés about her in Restless Style.
Mac unburdened her woes and admitted that she was trying to figure out who she truly was aside from her roles as the girl who helped people in Darfur, Billy's girlfriend, and the surrogate. Mac thanked J.T. for helping her sort out her life. Mac admitted that it was easy to forget who she was under the spell of Billy's charms. J.T. claimed that he wanted his relationship with Victoria back the way it was. Mac understood how a couple could be in tune one minute and seemingly have nothing in common the next. J.T. prompted Mac to admit that she was describing her relationship with Billy. J.T. said he hoped to return to a wife who wanted to make her marriage work. Mac asked J.T if he could maintain faith and make his relationship stronger. Instead, J.T. asked Mac what faith had done for her relationship with Billy.
At Restless Style's headquarters, Chloe was dumbstruck when Billy fired her. Billy railed at Chloe and said, "You went behind my back and ratted out my source to the court!" Chloe reminded Billy that her actions got him out of jail, but Billy thrust a packing box at Chloe and ordered her to pack up and leave. Chloe carried on with her job, but Billy yelled that she was fired. Chloe maintained that she had done the right thing by contacting the judge. Chloe stood firm and dismissed Billy's tantrums. A security guard escorted Chloe onto the freight elevator. Chloe yelled to Billy, "You are such an ass!" Billy sipped coffee and snapped, "Bye bye," as he pressed the button that closed the elevator doors.
At the Chancellor mansion, Chloe disgustedly slammed the door behind her after she arrived at home toting her office belongings in a box. Billy arrived later to see Delia. Chloe handed Delia to Billy, and they walked into the living room to face a disapproving J.T. and Mac. Billy cradled Delia while J.T. blasted him for twice trashing Victoria in national media publications. Billy pointed Delia's arm at J.T. and suggested that he go home to his wife unless she was busy doing something with someone else. Mac ordered Billy to stop harassing J.T.
Mac berated Billy for being unruly in front of his daughter. Chloe quipped that Delia would eventually learn to contend with her difficult father. Chloe escorted Billy to the door, and he demanded to take Delia home with him. Chloe refused and explained that the baby was tired and needed to rest. Chloe slammed the door and headed upstairs. Mac rushed to the door and watched through the sidelight as Billy flipped up his collar to cover his ears against the harsh wind. J.T. asked Mac if she was okay. Mac responded that she wasn't. J.T. pledged to go home to his wife and insisted that he should be grateful for what he had.