Billy makes a poor showing at Christmas, Jill gives and receives, and Sharon makes an impulsive decision!

Jill is in bed with Tucker at his place. He says he can't wait to join her and Katherine for Christmas. She warns that Kay is very sharp and will pick up on any signals between them. He promises to be careful. He then gives her a gift - red stilettos and diamond earrings. She says she has no gift for him - he tells her to wear what he just gave her - and nothing else!

Paul arrives at the Chancellor Estate and greets Nina, Katherine, and Murphy. Kay and Murphy are wearing the latest in fishing vests. Murphy explains that they're going ice-fishing! They wander into the living room, where Chance is hanging up with Phillip, and Mac has just spoken to Brock. The happy group is interrupted by Billy, who comes in inebriated! In no time at all, he spills the beans about Mac being pregnant! Jill has arrived and asks if it's true? Mac sighs and says she wanted to wait before telling anyone. Chloe murmurs to Chance that this must be the last nail in the coffin for Billy and Mac.

Tucker arrives at the Chancellor house and Katherine introduces him to everyone - including Paul, who she calls Jill's gentleman caller! Tucker gives gifts to Katherine, Murphy, and a watch to Jill. Billy cuddles with Delia, telling her she's daddy's little girl. Nina suggests that they take Tucker on a tour of the house. He goes off with Kay and Murphy, and Nina gasps, "Finally!" Nina and Paul tell Jill that they've had a breakthrough in the search for Kay's child - they have a name! They fill her in on the details, and Kay, Murphy, and Tucker return to the room. Jill asks to speak to Katherine, but Tucker gets to her first. Once alone, Tucker says he looked over Neil's proposal - it's a great deal. Katherine muses that she had decided to wait, but Tucker urges her not to!

All are gathered in the Chancellor living room again, and Billy is acting very drunk while holding the baby. He tells Chance not to try to be Delia's father. Chance insists that he's not. Chloe demands that Billy hand Delia over to her - he's drunk and slobbering - she deserves better. Billy says sorry to Delia and gives her to Chloe. Chance threatens to arrest Billy if he drives. Billy laughs and carries on, and Chance finally says he'll drive him home. After they leave, everyone looks at one another in awkward silence. Nina shows Paul out and Jill admits to Katherine that she was never dating Paul - they were working on a surprise for her - and the name is in this box!

Abby admires all the gifts under the tree at the Ranch. She tells Ashley that a whole bunch of them arrived from Victor last night. She also has a special gift for her mother - it's Traci! Abby sneaked her into the guest room last night.

Lily and Cane arrive at Neil's house for Christmas. Outside the door, Lily expresses her excitement about telling Neil they're expecting. They go inside and greet Neil, Devon, and Roxy. They sit down and begin exchanging gifts. Neil gives Devon some recording sessions in a Chicago studio. Neil is about to open his gift from Lily and Cane when there is a knock at the door - it's Abby, Ashley, and Traci. When it's finally time for Neil to open his gift - he pulls out a t-shirt that says World's Greatest Grandfather! Lily announces that Mac is pregnant. They all congratulate the happy couple, and Neil says it's amazing!

Mac has gone to Neil's house, and arrives just as the announcement is made about the pregnancy. She, Cane, and Lily grin at one another! Ashley gives Neil a small gift that reveals she figured out that Lily and Cane were expecting. Neil is appreciative. Traci is given a scrapbook of photos from Lily. Cane notices that Lily hasn't eaten all afternoon. She says she's just thinking about Dru not being there for the baby. Traci offers to answer any questions she has, and Lily thanks her. Mac thinks Lily looks tired. Devon says perhaps she should go home to rest. Lily and Cane head out, and she tells him she's not feeling very well - she wants to go to the hospital!

Adam goes to Sharon's house with a Christmas gift. He passes Noah, who is on his way out - it's his gift. Sharon thanks Adam for bringing something for Noah. Adam says they have unfinished business, and asks if she opened the box he put in her stocking. She says she was waiting for him, then goes to open it - it's a huge engagement ring! Sharon tells him she can't marry him. Adam, disappointed, says he understands - it's too soon. Sharon notes that she has to leave if she wants to see Noah get his snowmobile, but she would like Adam to open his gift first. Adam says it can wait until later.

Daniel says goodbye to his father Danny on the telephone at the tack house. Victoria and Phyllis discuss how great it is that Deacon got nailed, and Amber looks put out. Summer asks Nick and Phyllis to kiss. Victoria and Phyllis have a moment where they discuss Dubai. Phyllis says kids need their mothers. Victoria wishes JT understood that. Nick steps aside with JT and urges him to let his sister take Reed to Dubai. Just as things are getting tense, Victoria brings the phone to Nick - it's Victor! As he begins talking, the tack house door opens and someone hollers, "Hello family!" It's Nikki!

At the tack house, everyone has gone outside to see Noah's snowmobile. Nikki gets compliments on her new brunette hair color, and they decide to take a group photo on the new machine. Summer lags behind, and is the one to open the door when Sharon arrives. Sharon asks if Nick is there. Summer tells Sharon to go away! Stunned, Sharon hangs back as Summer moves past her to join the group gathered around the snowmobile. Sharon watches, unseen, as they all laugh and pose.

Nikki goes back inside with Victoria and Nick. She says she knows when something is wrong. Victoria admits things are strained with JT, and Nick tells her that he and Phyllis are working through something. They go back out, and JT watches with Daniel while Amber makes snowballs with Reed. JT tells him it is great being a parent - Daniel remarks that he's a long way off from that! Amber looks down. Victoria tells JT he's not the only one who feels that way. He asks why she is going to Dubai then? Daniel takes Amber aside and asks what is wrong. She says playing with Reed and Summer have made her wonder what Little D is doing without Deacon - she wants to visit him in jail to find out. Daniel insists he's a liar, but Amber says she'll hire Paul then - she'll do whatever it takes!

Sharon goes to the Ranch to find Adam. He asks if Noah liked his snowmobile. She quietly says he loved it. Sharon winds up holding Faith as she talks about moving forward. She notes that it would have been her baby's first Christmas too. Adam watches as Sharon croons at the baby.

Nikki arrives at the Chancellor Estate and rings the doorbell. Tucker comes to answer the door. They look at one another and Tucker says, "Merry Christmas Ms. Newman. Darlin'."

In the Newman jet, Adam pours drinks and tells Sharon they'll be landing in Lake Tahoe soon. Sharon laughs and says she can't believe they're doing this! She wonders what Noah will think when he hears they've gone off and eloped!

At the tack house, Nick gets a phone call saying that Adam is using the Newman jet. Nick asks if he was alone?

Next on The Young and the Restless:
A past holiday episode of Y&R will air.
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