Howard asked Scott why he was upset with the new Christmas gift exchange system, so Scott said he felt entitled to a gift after 16 years with the show. Gary came in to say that many TV shows give a Christmas gift to every staffer. Howard said he threw away 90% of the gifts people give him anyway, so he wanted to take the pressure off people to give him one in the first place. Scott then claimed he was "opting out" of the new system.
Richard came in to say he was going to give Howard a "Batman sword," so Howard told Richard that he always goes too far for a gift that just ends up being handed over to Ralph. Ralph called up to explain that he goes through all of the gifts that people have sent Howard and picks out what he wants. Gary asked if Howard has liked any gift he's been given in the last three years, so Howard cited a couple of Robin's gifts; a letter opener and a book.