They show that the wave function can be expressed as:
ψ(x,t+Δ t)=exp(-iΔt V(x)/2) exp(-iΔt p
The first operation on the wave function (right of last equation)
exp(-iΔtV(x)/2) ψ(x,t)= cos(ΔtV(x)/2)-i sin(ΔtV(x)/2)[Re (ψ(x,t) +i Im (ψ(x,t)]
since the operation is all in coordinate space.
Now take Fast Fourier Transform of last term and call the result ψ1(x,t):
ψ1(x,t)= F[exp(-iΔtV(x)/2) ψ(x,t)]
Since we are now in momentum space, we multiply the result by:
ψ2(x,t)=[cos(Δt p2/2m)-i sin(Δt p2/2m)]ψ1(x,t)
Now take inverse FFT to go back to coordinate space again and multiply it as:
ψ3(x,t)=F-1[exp(-iΔtV(x)/2)ψ2(x,t)
The wavefunction was advanced in time by Δt, repeat the whole procedure to continue advancing in time steps.