Extra armies per territory is turned on, and set to 1. This means that Blue and Teal get their normal bonuses plus 1 army per territory. (Note: Base income isn't counted as extra armies per territory is higher than base income. Warlight only takes the higher of the two values.)
Assuming you counted correctly...
36 (Bonuses) + 42 (Extra) = 78 for blue. 44 (Bonuses) + 39 (Extra) = 83 for teal.
The values check out to the values they're earning.