This document discusses refactoring software by restructuring code without changing its observable behavior. It provides examples of factors in algebra and how software is composed of components like methods, objects, and classes. Refactoring helps improve software design, find bugs, and change software to adapt to new requirements while preserving functionality. Common refactorings include extracting methods and classes, replacing magic numbers, and moving code. Design patterns like Proxy, Singleton, and State are also discussed as approaches to solving recurring problems.