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A big bath is the expensing of a significant amount of assets that normally would have been amortized or otherwise expensed in future period. What a big bath does is, while it lowers net income for the current period, it will result in higher net income in the future periods (than what it would have been if you had not taken a big bath) as some the expense that you should have incurred was already expensed in the previous period. This is usually the strategy are seen when a company replaces its management, the new management will take a big bath blaming the poor performance of the low income year on the previous management and then take credit for the "improvement" (illustrated by the high net income in the later periods).
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