Splits all faces along a cut line. You can cut and delete faces or extract the faces
Extract offset is available only when the Extract cut faces option is selected. Extract offset specifies the distance between the original surface and the cut and extracted piece. One practical use for this setting is to widen the model of a head. In this case, you would cut the model exactly down the center and use Extract Offset to position the extracted half further away, until the head seems wide enough. You would then fill in the gap to complete the head using Edit Mesh > Bridge.