Bill reacts to Karen's reveal, Thomas worries about Steffy, and Steffy opens up to Taylor.
At Forrester, Taylor questions Steffy about what she and Liam did while alone on his wedding day. Steffy describes how Liam asked her to come with him; it wasn't over for them. Steffy recalls how they kissed and started taking clothes off. Taylor asks how far things went. Steffy says they didn't make love - she realized Bill was behind it all, and couldn't do it. She knew, after listening from the bathroom, that she had to let him go. Steffy cries that Liam wanted to be with her - and he meant it.
At home, Bill crows about having another son as he looks at the ultrasound photo. Katie laughs. Outside, Karen and Danielle arrive and knock. Bill shares his news about the baby and they have a champagne toast. Danielle and Katie go to the patio, and Katie assures Danielle that Bill won't turn Karen away - he's way more accepting than his father. Inside, Karen tells Bill she's kept her distance from him because she's been afraid of what he might do to her family - Caroline and Danielle. "I'm gay. I wanted you to know." Bill responds, "No you're not." Karen sighs and explains that she and Danielle have raised Caroline and have been together a very long time. Bill listens as she explains why she once dated Thorne, and how their father reacted to her being gay. Karen tells Bill she kept it from him because he's a lot like their father. Bill acknowledges that, but tells Karen he accepts her for who she is, and loves her as his sister; his family. They embrace. Katie and Danielle re-enter. Bill welcomes Dani to the family. Karen apologizes for thinking he wouldn't accept her. Bill reiterates his love and support.
Thomas lifts weights outside at Forrester. Caroline says the view out there is impressive. She tells him his mom is still inside. Thomas hopes everything is okay.
Thomas and Caroline join Steffy and Taylor in Ridge's office. He tells Steffy she needs to stop moping and get out of there - they won't take 'no' for an answer. Steffy doesn't want to join them, but leaves saying she'll get over it and move on. Outside the door she cries.
Spoilers for Tomorrow on The Bold and the Beautiful:
Brooke wants Hope to agree not to have any further contact with Deacon.
Liam encounters Steffy for the first time since marrying Hope.
Brooke tries to make peace with Steffy.
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