Brittany tells Nikki that Bobby didn't come home last night. She is extremely worried about him and wants to call the police. Nikki says she shouldn't jump to conclusions. Brittany thinks that Nikki knows something; but Nikki won't admit anything. Brittany runs off to ask J.T. for help. J.T. suggests that maybe Bobby ran off with another woman. Brittany wonders why J.T. hates Bobby so much. J.T. says that he doesn't hate him; he just doesn't think that he's the best guy for him. Brittany wonders who J.T. thinks is the best guy for her. He changes the subject and says that he can track Bobby down with his credit card numbers. Brittany thanks him and says she will call with the numbers.
Nikki is dazed. Victor wonders how long she is going to sit around all day like that. She tells him that she is extremely angry. Victor says he told Bobby to help her. Nikki thinks that Victor told Bobby without any compassion. Victor tries to say that he did what he had to do for Nikki.
Damon thanks Chris for seeing him last minute. He tells her that he has decided to tell Phyllis the truth. He believes he owes her. Chris tries to advise him against it but Damon has made up his mind.
Phyllis calls out for Daniel and sneaks in the house with Jack when she finds out that he's not there. Jack wonders what she would say if Daniel was there. Phyllis says she would say the truth. As the two talk about Chancellor Industries and Jack's loyalty to his family, Jack wonders what this means for the two of them. Phyllis says she's going through so much right now she can't say. When Jack leaves they kiss passionately and Damon peers through the door window and sees them.
When Damon knocks on the door, he tells Phyllis he has to talk to her. Jack leaves and they have a heart to heart. Damon tells her that he has some important news for her.
Lily wishes Malcolm a Happy New Year. She wonders if the reason things are off with Malcolm and Neil have to do with a woman. Malcolm says that Lily shouldn't be worried. She hopes to discover the truth.
Adrian sees Malcolm at the coffeehouse and finds out that he works there. He is surprised because she is the first person who hasn't judged him for working there. They talk about staying in Genoa City and the strangeness of spending time with their families. Malcolm feels lost, but can't share too much information with Adrian. They decide to go out and do something fun to take their minds off of their problems.
Phyllis and Damon are together at her place. He has just handed her the transcript of her prison visit with Dominic Hughes. Phyllis said she knew someone was lying about having evidence that would clear her and says she can't wait to see Detective Webber's face when he reads it. She then realizes that while this will help prove she is innocent, it will implicate Damon. Damon doesn't want her to worry about this and emphasizes she's the innocent one; it is he who is guilty of wanting to kill Dominic. Phyllis tells Damon that Hank Webber will have a field day with this transcript and will obviously use it against Damon. Damon is again adamant that he doesn't care if it hurts him and just wants to make sure Phyllis is taken care of in this regard, but Phyllis does care and doesn't want Damon implicated by this new evidence. Phyllis is grateful for Damon's generosity and says being with him has made her a better person. Damon tenderly tells her that they have been good for each other. They then share a kiss, after which Damon tells Phyllis that she alone has helped him to feel and to love again. Phyllis tearfully tells Damon she's sorry it all hasn't worked out for them. Damon stresses to her that love never ends...it only changes and transforms itself. They warmly embrace one another.
At the office of Baldwin, Blair & Williams, Paul and Christine are discussing the transcript. Chris says she's going to have to tell Michael eventually that they do indeed have this evidence which will clear Phyllis. She's trying to come up with an excuse for withholding this, when Michael enters...he's not happy and says he wants to talk to Paul alone. It's at this time that Christine confesses she has something to tell him and proceeds to admit that she has been in possession of the Georgia Prison transcript. As they expected, Michael is irate that he was not told about this earlier. Chris tries to defend herself. Michael wonders how he can ever trust her again and then says that he no longer wants Paul associated with the firm. He yells that it's obvious Paul has only wanted to work with Chris all along, and was never committed to working for the firm itself, meaning both for Chris AND for him.
Malcolm and Adrienne come into Crimson Lights after a day of ice skating; she's limping, and Malcolm is helping her walk. They sit down, and Malcolm then proceeds to massage her foot. They then share a light-hearted laugh about Adrienne's clumsy accident. Adrienne tells Malcolm that it feels good to talk and laugh with someone. Malcolm then asks her out to dinner that night. She readily accepts but then remembers she has promised to meet with Damon. Malcolm says he hopes she finishes whatever business she has with her ex-husband very soon.
At another table, Lily is discussing her Uncle Malcolm with Devon and the fact she knows something has been bothering him. She asks Devon's help in implicating a plan. Trevor then brings them their order. Still fixated on her uncle, Lily tells Devon that she's determined to unravel the mystery surrounding Malcolm.
Victor is at home on the phone, obviously having just been given some long-awaited good news...it seems a loved one is coming home!
Jack visits Nick at Newman Enterprises. They begin discussing Nick's new position of CEO, bestowed upon him by his father. Jack tells Nick the news about Katherine appointing him as CEO of Chancellor Industries. Victor enters the office while this conversation is going on, unbeknownst to either Jack or Nick. After a few moments of eavesdropping, Victor makes his presence known, saying hello to the two of them. Victor immediately reminds Jack that he has been barred from the building. Jack, with a smile, informs Victor that he is now the new CEO of Chancellor Industries. At hearing this, Victor's first words are, "Poor Katherine." After more sarcastic conversation between the two enemies, Jack leaves. Victor then inquires how the company is doing without Neil. Nick says he definitely needs to fill Neil's position and will probably groom one of the company's vice presidents for the job. Victor then shares with his son the phone call he received earlier in the day. It was Victoria calling...she might be coming home. Nick wonders when...Victor hopes soon. Nick questions if it will be for good this time. His father then states that they need to offer her something so she will stay this time...they need to give her previous position back to her with the Brash and Sassy line. Victor also points out that her seat on the Board of Directors has sat empty all this time. Nick encourages his father not to push anything on her. Nick's tone suggests he might not share his father's enthusiasm about the return of his sister.
At Crimson Lights, Ashley is deep in thought regarding a past conversation she had with Victor. Jack too is there. He greets his sister...she's startled. She's obviously very worried about Jabot and shares with Jack their plans for Chapter 11 Bankruptcy. Jack tries to show concern, but Ashley questions if he really cares. She acts rather snippy with Jack, appearing as though she begrudges his return to the corporate world via Chancellor Industries. She then sarcastically inquires how Chancellor is doing. Jack then even suggests that Ashley may possibly want to work along side him at CI if Jabot doesn't survive. Ashley then confides to Jack that she may have a plan, as insane as it may sound, to save Jabot. Jack appears quite puzzled by this. He wonders what her idea may be and encourages her to try anything that may save Jabot. He happens to mention seeing Victor when he went over to Newman Enterprises to visit Nick. Ashley again drifts off in thought, and Jack leaves.
Dru is at home on the phone and is talking with someone regarding a paternity test, after which Neil comes in from jogging. He wonders to whom she was talking. She tells him she was just checking on a lingerie order she had placed. He then suggests she take the day off from work... Dru seems to be in favor of that idea. They comment to one another about Nick's management of Newman Enterprises since his father turned the company over to him. Dru then confides to Neil that she feels she's losing control over her life, both professionally and personally. Neil tells Dru not to worry about her job. She tells him that she's more worried about Lily right now than anything. Neil doesn't understand why, as Lily seems to be doing well lately. He becomes a bit suspicious, thinking that Dru feels there is something specific worrying her. He's pretty sure that whatever it is concerns Malcolm but assures her that it will all work out. At the next moment, the phone rings; it's Nicolas. "We need to talk" he says to Dru. Dru tells Neil that Nick wants to see her, and also Neil. Dru is sure he wants to fire her and wants Neil to go without her to meet with Nick and just bring her the bad news. Neil said they both must go and then leaves to take a shower. Lily arrives home and quickly realizes there is something bothering her mother. She then tells Dru she's convinced that her Uncle Malcolm isn't happy and asks Dru's help on her quest to bring Malcolm happiness.
Back at Michael's law office, the argument about Christine withholding the evidence is quickly escalating into a huge fight between all three partners. Chris claims her waiting has done Phyllis no harm, but Michael argues that the emotional toll it has taken on Phyllis has been horrendous. Michael is still adamant about firing Paul. At the height of all this, Phyllis walks in the office, specifically confronting Chris, matter-of-factly stating that she now knows something has been kept from her for weeks. All three partners are now speechless...
Gloria overheard Ashley and John talking about how to save Jabot. John was surprised that she hadn't called the attorneys yet to get them under the protection of bankruptcy. When John went upstairs to shower, Gloria verbally attacked Ashley for not finding a way to save the company. Ashley accused her of being a golddigger who was disappointed that the man she married might not be so rich after all. Gloria denied it, saying her only concern was for John. She didn't care what Ashley had to do; she should make a deal with the devil if that's what it took to save John's company.
Abby and Brad were having lunch at Gina's when Victor came in. Gina took Abby away before she could see Victor. Victor accused Brad of constantly trying to keep him away from Abby, and Brad said he's doing it for Abby's best interests rather than to thwart Victor. Victor walked away angry and called Ashley, asking her for an afternoon meeting.
Lily asked Drucilla to help her find out what was bothering Malcolm. Drucilla managed not to say anything to heighten Lily's interest until Lily mentioned throwing him a party. Drucilla forbade it. Before Lily and her mother could argue it out, Neil reminded Dru that they had a meeting with Nick. They left, with Lily wondering what everyone was hiding from her.
Sharon went by Nick's office and learned that Victoria might be coming back to town. She wasn't thrilled, considering that they'd been on bad terms before Victoria left, but she said that maybe things would be better between them once Victoria saw how well Nick and Sharon were getting along. However, she agreed with Nick that it was his place, not Victor's, to offer Victoria a job. Nick told her that he'd already figured out a way to keep that from happening.
Drucilla went into the meeting with Nick expecting to be fired. Instead, Nick wanted to make her head of the cosmetics division, as long as Neil would agree to come back to Newman to be Drucilla's mentor. Drucilla was thrilled; Neil was a little more skeptical. Dru left the two men alone, and although Neil still felt like there was more to the story, he agreed to come on board. Meanwhile, Victor found out from Drucilla that she'd just been given Victoria's old job. He went into Nick's office and asked Neil to leave him alone with his son so they could talk.
Damon and Daniel had a talk in which they agreed that they both had a lot of respect for each other, unlike when they'd first met. Damon assured Daniel that his mother was not going to jail, but he also said that no matter what happened, he'd always be there for Daniel and Phyllis. Daniel began to understand that Damon and his mother had broken up.
Phyllis accused Christine of withholding information out of spite. Christine said she'd only been doing it to protect Damon. Michael, Paul, and Christine were all shocked to find out that Phyllis didn't want them to use the information yet. She wasn't going to save herself at Damon's expense. She warned Christine that she'd better do something effective soon to get Damon out of trouble, or she'd have to answer to Phyllis.
Drucilla informs Phyllis about being named the new head of the cosmetics division for Newman. Phyllis nearly chokes on her coffee. She is upset that Nick has gone ahead and made this decision without consulting her first. Drucilla can tell that Phyllis is jealous and mentions that she just wanted to stop by to share this news with her.
Victor asks Nick why Drucilla is being delusional. Nick tells his father that Drucilla is right; he has decided to name Drucilla the new head of the cosmetics division. He has also worked it so Neil will come back to be her mentor. Victor is extremely upset. He wonders why Nick would do such a thing; especially after Victoria finally called and mentioned that she wanted to come back to her old job. Victor thinks Nick is trying to purposefully tear the family apart. Nick tells Victor that by being named CEO he had made it clear that he wouldn't be challenged. Nick says that although he knows Victor can still change things he would hope Victor wouldn't do that. Victor says he won't; but he does have a surprise for Nick.
Phyllis storms in Nick's office and demands to know why she wasn't considered for Drucilla's new position.
Colleen meets up with J.T. at the coffeehouse and she tells him that she has decided to stay in Genoa City. She has graduated early and wants to stay there to help her family. J.T. wonders what this means for the both of them. J.T. is confused about it himself. He says that when she was gone he missed the hell out of her. He had a really hard time acknowledging that she was out of his life. Colleen says that she left to help him with his music career; she didn't know that he quit. J.T. says that he couldn't let Colleen walk out on him like that. He kisses her and Brittany walks in and sees them.
Brittany says she doesn't want to interrupt but Colleen says that's okay, she was just leaving. When Brittany finds out Colleen is staying in town she thinks it's a good thing. She tells J.T. how worried she is about Bobby. She wonders if she made a mistake marrying him. J.T. tells her how much Bobby loves her. When Brittany wants to go home to wait for Bobby, J.T. suggests they go to a movie.
At Gina's, Nikki stares ahead thinking about her last conversation with Bobby. Katherine comes to her rescue and tries to talk to Nikki about it. Nikki tells Katherine about killing Bobby's brother. She is afraid that Bobby is missing and will do something stupid while he's gone. Katherine suggests maybe Nikki should have security on hand in case if she's not sure what Bobby is capable of.
When Brad and Abby show up to see Ashley, Ashley is worried they might have a run in with Victor. Abby is there to pick up her ballet slippers. While she is upstairs, Brad can tell Ashley is anxious. As they are leaving, Victor comes to the door. Ashley tells Brad she will explain later.
Victor asks Ashley if she has been thinking about his offer. Ashley wonders what Victor's interests are in the company. He says that he wants to help Ashley out, no strings. Ashley tells Victor to go call off the bankruptcy.
Jack and Jill meet and discuss working with Chancellor Industries. Jill is worried that when Jabot goes under she won't have a job. Jack mentions the possibility of investing in Jabot with CI. Brad interrupts them and tells Jack he's worried because he knows Ashley is meeting Victor about something. Jack goes to see Ashley about it right away.
Lily talked to Devon at Crimson Lights about how her mother had told her she couldn't have a party for Malcolm. She decided to go ahead with her plans anyway; if she couldn't have it at home, she'd find another place. She went to the athletic club restaurant and talked to Gina, who agreed to help her keep the costs down since it was for Malcolm.
Damon and Adrian met at the athletic club and were able to talk about Elias without bitterness. They agreed that time had helped them both, but Adrian also thought that Phyllis had helped change Damon. Damon told her that he and Phyllis were no longer romantically involved. He asked Adrian to stay in town a while longer. He also offered to let her be his guest to work out at the club.
Malcolm ran into Dru when he went to work out at the athletic club. Drucilla told him about her promotion and that she had ordered the DNA test kit. She still didn't understand why he'd changed his mind; when Lily was born, he'd never wanted to pursue this. Malcolm said he didn't intend to interfere with Lily's relationship with Dru and Neil. He just needed to know the truth. Lily came up to talk to Malcolm, confirming that he'd once worked for Jabot. As she was leaving, Adrian joined them. Dru was suspicious because Adrian seemed to know who Lily was. After Dru left, Malcolm took Adrian back to her hotel room. After rubbing her shoulders, the two shared a kiss.
Jack couldn't believe that Brad was right, and Ashley was actually considering letting Victor help her get Jabot out of their financial mess. He warned her that Victor never did anything without a motive, and sooner or later, he'd probably make a move to take Jabot over again. Ashley said that wouldn't happen. She knew that Victor felt bad for what had happened to her and to Jabot and was trying to make amends. In any case, she wasn't interested in Jabot becoming part of Chancellor Industries. It was going to stay a family company, and Jack was no longer part of it.
Kevin ran into Mac at Crimson Lights and asked her how the party had gone. Mac said that she'd kissed J.T. Kevin warned her that J.T. might still have feelings for Colleen, and Mac agreed that J.T. might not see her as anything more than a gal pal. Kevin told her that she should talk to J.T. honestly and see where things stood. Mac thanked him for listening to her; he'd been helpful.
Kevin went to see Michael at his office to get advice. He wanted his friendship with Mac to continue to develop, but he wasn't sure what she'd think of him once J.T. finished telling her all the things Kevin had been accused of doing. Michael urged him not to dwell on the past. The best thing he could do for himself and to win Mac's trust was to continue on the path he was on, being the new and improved Kevin. He should be in the present. Gloria overheard part of their conversation and told Michael that she couldn't have said it better herself. She, too, was looking for advice. She wanted to take an active role in saving Jabot before the situation killed John. Michael warned her to stay out of things, or she might end up looking like a fool. When he got a call and left, Kevin told his mother she could count on him for support if she needed him.
Phyllis confronted Nick about his decision to give Drucilla Victoria's old job. She said that Dru was nothing more than a spokesmodel. Phyllis resented that Nick hadn't even given her a chance at the position. She had more experience than Drucilla, after all. Nick said that the decision had been made. When he told her that Neil was coming back to mentor Drucilla, Phyllis said this was all about getting Neil back and saving face. However, Nick was making a big mistake; he should back out of it before it was too late. Nick reminded her that even if she had been in the running, which she wasn't, her legal situation and the publicity she was receiving were detrimental. He advised her to get her own house in order before she ended up losing the job she had. Phyllis said that whatever Nick might think of Victor Newman, at least he'd always been honest with her. Then she walked out on Nick.
