This means that when you run the report, these 5 filters will appear at the top of the report results, allowing you to filter the data down into more manageable/accurate results before exporting. For example, if you only want to show the users who haven't completed the activity, you can drop the Completion Status menu down and select Incomplete and Not Attempted.
Alternatively, rather than waiting until you get to the reports list page to begin using the filters, you can set them up to be more specific whilst in the Filters and Sorting tab - this is particularly important if you are setting this up as a specific report to run on a regular basis. In this example, we'll set the Completion Status to Incomplete and Not Attempted in the Filters and Sorting tab so that this report can be sent to managers on a regular basis.
As you can see from the filters that were already set up for this report, the system has set the Person Status filter up so that it will only return Active users as there is no point in reporting on any user logged in the system.