On the day of his 111th birthday, with Frodo Baggins leaving to wait for Gandalf the Grey, Bilbo Baggins decides to write down the full story of the adventure he took sixty years ago. Bilbo writes about how, prior to his own actual involvement, the Dwarf Thror becomes King under the Mountain and brings an era of prosperity to his kin until the arrival of Smaug the dragon. Drawn by the amount of gold that the Dwarves have amassed, Smaug destroys the mens' local town of Dale before driving the Dwarves out of Erebor. Thror's grandson, Thorin, sees the Elves up on the hillside and is dismayed to find them taking their leave rather than aiding his people. This event leading the Dwarves to despise Elves ever since.
Sixty years earlier, Bilbo is tricked by Gandalf into hosting a party for Thorin and his band of dwarves that doubles as Bilbo's recruitment as the Dwarves' "burglar" to help them steal their treasure back from Smaug. Though Bilbo refuses at first, he decides to join the company on their journey to the Lonely Mountain. During his first night sleeping in the wild, Bilbo learns about how the Dwarves met when they were fighting back for the Dwarven city of Moria that fell under Orc dominion. The leader of the Orcs, Azog, also known as "The Pale Orc," killed Thror.
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