The document discusses splitting a Class C network with the IP address 192.168.1.1 into 4 subnets. It explains that 2 bits will be borrowed from the host octet to create subnets, resulting in a subnet mask of 255.255.255.192 or /26. This will create 4 networks - 192.168.1.0, 192.168.1.64, 192.168.1.128, and 192.168.1.192 - each supporting 62 hosts.