Stanley ushers a lovely young woman through the office, and Andy asks Phyllis who she is, shutting her down when she suggests she's out of his league. He THs that he's now single, which means "the ultimate smackdown between the Nard-Dog and crippling despair, loneliness, and depression. I intend to win."
In the annex, Jim and Dwight try to apologize to Kelly, wisely using her cube wall as cover. Dwight and Kelly quickly get into a shouting match, but Jim just asks how they can make it up to her. She goes into a long martyr routine that Dwight blissfully interrupts by demanding, "What kind of cake do you want, imbecile?" Kelly: "Ice cream." Well played, Dwight.
Michael makes Pam take a picture of him next to the Dunder Mifflin sign outside the Utica branch, and when they enter, Rolando the receptionist tells them they're late and Karen will lead them to the conference room shortly. Michael tells Pam not to be nervous, and to try picturing Karen naked, like he does. Karen shows up, smiling and happy to see them, and quite visibly pregnant. Michael, who can always be counted on to say the exact wrong thing, asks, "Is that Jim's?" Ah, there's that face Karen makes. I didn't realize how much I'd missed it. Both their minds are obviously blown, but Pam's able to camouflage her slightly awkward reaction behind Michael's totally inappropriate one. Sometimes he's handy to have around after all.
Jim enters the conference room, which Dwight is decorating with drab-colored, half-inflated balloons hung randomly in patterns that create the impression of a baboon cage in zero gravity. There's also a big laser-printed banner reading "IT IS YOUR BIRTHDAY." Jim's kind of unnecessarily mean about it to the point where he actually hurts Dwight's feelings. "Fortunately my feelings regenerate at twice the speed of a normal man's," he adds. Jim's not doing much better than Dwight, because he's supposed to be collecting money and only has the six dollars that he and Dwight kicked in. Oh, if only Kelly were the type who could appreciate the entertainment value of this train wreck, this would be her best belated birthday ever.