The blower inside a house has a fan blowing over a coil which has a very cold liquid running through it. When air passes over the coils it is cooled down. (In other words the liquid inside the coil has absorbed the heat from the air flowing over it, causing it to vaporize.)
The now hot liquid (actually gas) inside the coils has to be cooled. So it is carried outside to the units where another fan blows air over it, thus cooling the gas and condensing it into liquid. The now cooled liquid can yet again be sent into the room and the cycle repeats.
You have basically pumped heat from your house out to the environment.
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