The document discusses sequential logic implementation including finite state machines (FSMs). It covers FSM design procedures like deriving state diagrams and transition tables from specifications. It also compares Moore and Mealy machines, noting that Moore machines have outputs depend only on current state while Mealy machines have outputs depend on current state and inputs. Mealy machines tend to require fewer states but Moore machines are safer to use in designs where outputs change at clock edges. The document provides examples of specifying and implementing FSMs in Verilog including both Moore and Mealy machines. It also gives an example FSM design for a vending machine.