Mike is excited to be spending Christmas with the Flynn family. They go all-out and celebrate with style. However, on the last day of school before Christmas break, Molly learns that her nemesis Becky got the Vice Principal job instead of her. This launches her into a funk no one can seem to penetrate. In the tradition of "It's A Wonderful Life", a former student visits her and thanks her for encouraging him to pursue his art and she realizes she does make a difference. Also, Mike is Santa Claus and Carl is an elf as they hand out gifts to needy children.