Smaug: You seem familiar with my name, but I don't remember smelling your kind before. Who are you and where do you come from, may I ask?
Bilbo Baggins: I come from under the hill...
Smaug: Underhill?
Bilbo Baggins: ...and under hills and over hills my paths lead. And through the air! I am he who walks unseen!
Smaug: Impressive. What else do you claim to be?
[leans forward to smell Bilbo]
Bilbo Baggins: L-Luck-Wearer... R-Riddle-Maker...
Smaug: Lovely titles... Go on.
Bilbo Baggins: Barrel-Rider!
Smaug: Barrels! Now that is interesting!