After Callie discloses her desire to move to New York with Penny and take her and Arizona's daughter, Sofia, with her, Arizona takes Callie to court for sole parental custody. Callie eventually loses custody of her daughter to Arizona and breaks up with Penny, heartbroken, Penny moves to New York. After Arizona decides that both Sofia's moms deserve to be happy, Arizona presents Callie with plane tickets and offers a custody agreement that keeps Sofia in Seattle for the summer and then sharing her every other school year and Christmas.