He is smiling????
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I think he just has a case of the "I told you so's" with Pat.
He delivered that like an oncologist with poor bed-side manner says "you have 6 months to live." Cautious, then awkward, with a note of "oh but this doesn't impact me!"
He's demonstrating his dominance, just like when he shared the blame with his boss.
Why is Christy taking notes? Is she hearing this info for the first time right now?
Yup, he knows he's responsible, but he knows nothing will happen to him for it.