With the 'mt' for the C input, this just means that the input isn't ready until mt time after the X and Y inputs. Each gate adds propagation delay t, so this just tells you that Cin was produced by m gates.
About those two gates that produce Cout, and the nested max() -
max(max(mt,t), t) reduces to max(mt,t) :
let f(m,t) = max(max(mt,t),t)
let g(m,t) = max(mt,t)
if mt > t, then
f(mt,t) equals max(max(mt,t), t) equals max(mt, t) equals mt
g(mt,t) equals max(mt, t) equals mt
if mt <= t, then
f(m,t) equals max(max(mt,t), t) equals max(t, t), equals t
g(m,t) equals max(mt, t) equals t
So, for any m and t, functions f() and g() are equivalent. I.e., max(max(mt,t),t) reduces to max(mt,t) !
Now, with that out of the way, you should see that the t wasn't extracted from the max() expression; that t delay was incurred by the rightmost AND gate. It was the inputs to that AND gate that were ready at time max(mt, t), and its output was ready t units after that, for max(mt,t) + t. Likewise, the OR that produces the C output adds another t of propagation delay, giving you the max(mt,t) + 2t result.
homework
tag as it's deprecated, so I rolled back to that version. \$\endgroup\$