Back in the bullpen, Pam pipes up to say she thinks he looks great, and Jim thanks her, only a bit hesitantly; in the background, Karen looks down. That Pam is such a hussy! With her...acknowledging visual stimuli!
Pam interviews that after she had her "little outburst on the beach" (in the previous, as of this writing not-yet-recapped episode), Jim was very nice about it. We see footage from the beach, of Pam and Jim hugging, as Pam says that he told her he missed her friendship too, and that she would always mean a lot to him. Pam adds that she isn't embarrassed: "It needed to be said, and I said it. And it only took me three years to summon the courage, so [sarcastic bow] thank you." Next stop: summoning the courage to take that cardigan back to JC Penney.
Michael's apparently made it back to Scranton, and he's in his office when a knock comes on the door. Dwight enters, and Michael tells him that it's time for him to name his replacement. It...is? Doesn't that usually happen after you get the new job? Anyway, Michael takes a Dunder Mifflin envelope off his desk, and asks Dwight to "hand this letter of congratulations to Dwight K. Schrute." "But that's my name," breathes Dwight. He opens the envelope and reads the letter, Michael looking on excitedly: "Dwight: Congratulations, a-wipe. Don't screw the pooch." The sentiment is so moving for Dwight that he starts to cry -- as, I think, any of us would. Michael beams, enjoying the rush of giving good news. And then Dwight starts seriously bawling, and Michael's enjoyment dissipates. By the time Dwight actually clutches the letter to his bosom, Michael is clearly wishing he had (prematurely) signed the office over to Stanley.
Pam finds Karen in the break room and apologizes for the whole thing at the beach. Karen tells her not to worry about it: "We all say things without thinking." Pam explains that she had been thinking that for a long time; she's just sorry if it made Karen feel weird. Karen's like, "...Okay," clearly bracing herself for the next crazy-ass thing out of Pam's mouth to be, "I'm going after Jim in a big way, never mind that he's in a relationship with you. Just FYI."
Karen interviews, "Pam is kind of a bitch." Ha!
In the bullpen, Karen comes over to Jim's desk, and suggests that they drive up to New York after work: "Grab a bite, get a hotel room, enjoy the city a little bit?" Jim sighs heavily that he just has so much paperwork to do! But then he signs his name on a form, closes his folder, and announces that he's done. I don't know why these people complain all the time -- having a bullshit job looks awesome.