D3 Bubble Example: What does bubble.nodes() do?

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Example: http://mbostock.github.com/d3/ex/bubble.html

enter image description here

I'm having a hard time understanding what goes on with line 16:

.data(bubble.nodes(classes(json))

And why, or where within the classes() function, the variable classes[] gets x,y,r values defined for each of its objects. Also, bubble.nodes() doesn't appear to be an actual function?

If I add a

console.log(classes)

between lines 44 and 45 - every object inside seems to be populated with x,y,r already -- but it is not apparent why this happens.

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