Audrey gives her rug to Jenn and Adam, and Jeff is upset by the prospect of buying a new rug. So, he tells intimate stories involving the rug, hoping Jenn and Adam will want to give it back.
Russell's utilities are cut off in his apartment, and Timmy gives him a lesson on budgeting. Meanwhile, Audrey becomes a mentor to someone who wants to learn the publishing business.
Russell takes Adam's idea for holiday gift-giving, surprising everyone in the office; and Audrey is determined to make people laugh at Jeff's holiday party.
Russell takes his date to see a performance by Criss Angel (who appears in a cameo), and Angel makes the woman disappear; and Audrey makes a mistake by telling Brenda's girlfriend that Brenda will be her surrogate.
Jeff has an awakening when he sees an old photo of himself in an art gallery and decides to make changes in his life; and Russell isn't having a lot of luck with women.
Jeff and Audrey panic when they get sonogram results and think they might be having twins; and Russell tries to impress a woman by throwing a citizenship party for Timmy.
Audrey gets a raise, which makes Jeff feel threatened, since she now makes almost as much as he does; and Russell gets Timmy to find out why Liz likes another man.
Russell thinks he's going on a cruise for "Red Hot" ladies, not realizing it's "Red Hat" ladies over the age of 50; Timmy mediates a dispute between Jeff and Audrey.
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