I am unsuccessfully attempting a problem from Spivak's popular book 'Calculus' 3rd edition. The problem requires proof for the following equation: $$x^n-y^n=(x-y)(x^{n-1}+x^{n-2}+\dotsb+xy^{n-2}+y^{n-1})$$ The solution to the problem, contained in the answer book, is as follows: \begin{align*} x^n-y^n &= (x-y)(x^{n-1}+x^{n-2}y+\dotsb+xy^{n-2}+y^{n-1})\\ &= x(x^{n-1}+x^{n-2}y+\dotsb+xy^{n-2}+y^{n-1})\\ &\qquad -[y(x^{n-1}+x^{n-2}y+{...}+xy^{n-2}+y^{n-1})]&\Rightarrow \mathbf{Equation1}\\ &=x^n+x^{n-1}y+\dotsb+x^2y^{n-2}+xy^{n-1}\\ &\qquad -[x^{n-1}y+x^{n-2}y^2+xy^{n-1}+y^n]&\Rightarrow \mathbf{Equation2}\\ &=x^n-y^n \end{align*}
While I believe that the distributive law was used to arrive at Equation 1, I do not understand how Equation 2 was arrived at.
I have tried to solve this independently to no avail. I cannot seem to understand how $x^n$ and $y^n$ came about in Equation 2 for example.
To summarise the question, what principle was Equation 2 based upon? And how was this applied in the above problem.