Nope, not damage. That's a cud, caused by a broken die. Yours is a nice one. I don't see one that looks like it on this site: http://cuds-on-coins.com/ This one comes closest, CU-1c-1974D-10. Yours could be a later die state. Others will be by soon to tell you more.
Thanks for the responses everyone. I had no idea when I found this several years ago and though someone might have used a torch on it or such. Just threw it in a jar with other the cents I'd found but then saw a blank quarter planchet (I found one of those too) on here and other errors so I dug up this cent to see if maybe. Is it worthwhile to get something like this slabbed?
You're welcome to look into it (perhaps things have changed over the last 5 or so years?), but I doubt it. This one is pretty clear cut and can easily be identified/attributed by any interested parties when the time comes to sell. The choice is yours, though, and there's certainly nothing wrong with getting it in plastic if you'd prefer.... just do so as cheaply as possible.
Excellent find and would be slabbed if mine. You should get in touch with Bob at the site link posted above. If not yet attributed he could do this for you. You may not have to send it to him, he might be able to do it with quality photos via email.
I will get in touch with him. My photos are terrible so if he wants me to, think I'll send it to him! lol Thanks!
So I left my information for him in the contact area and took a look at their examples. Wondering if this one was an earlier version of the damaged die? What do you all think?