Select the entire picture (ctrl+A), then use the lasso tool and alt (- selection) to cut out the pieces from the edge. That is how I cut out the pieces on my sig picture. Alternatively you can select the whole thing, enter quick mask mode and run the crystalize filter (filters>pixelate>crystalize), exit quick mask, inverse selection (ctrl+shift+I) and then clear (backspace) the pieces out of there, though that will produce some different results. He also took the burn tool and burned the edges a bit (like I did on my sig). Looks like he also did a clouds (render>clouds) overlay with one of the layer blends going. Maybe did a couple more things also...
:emerald:
Edit: I think he also applied a texture to the bottom portion by applying it to a whole layer, then using a layer mask, then one of the layer blends.
:emerald: