Gotta give Louis CK and Adlon a lot of credit on the kids. The ones on Louis' show are fantastic and Adlon's are right up there. So much more complex and sophisticated that most "sitcoms."

Agreed — the ample context around the phrase makes it generally understandable to even a grade schooler, even if she didn't know the actual phrase. Sam is explaining that they are both f'd, which is something I think most parents hide from their kids, which is part of what makes the show so good — excellent dialogue.