I wasn't clear... It removes the centered content from the left and right and plays it discretely only out of the center speaker. It essentially creates three discrete channels up front.
The rears have more complicated processing going on. Not just time modifications, but pulling certain frequency bands and moving them to rear left or rear right. I haven't figured out how it is doing that yet, but I think it has something to do with moving frequencies that are highly directional and only on the one channel of the stereo spread to both the front and rear in that channel. It pulls that sound into the room. Sometimes it seems to be more forward, and other times more towards the rear. Not sure what it is doing, but it sounds great.