The document discusses subnet masking and subnetting. It explains that subnet masking allows you to identify the network and host portions of an IP address by using 1s and 0s in the subnet mask. Performing a bitwise AND of the IP address and subnet mask yields the network address. Subnetting separates a classful network into smaller subnetworks to better utilize IP addresses and support network hierarchy. The document provides examples of subnet masks for class A, B and C networks.