DAVENPORT, Iowa - Davenport-based Lee Enterprises plans to reduce its book value by an estimated $500 million to $700 million in goodwill.

Lee follows a number of other newspaper companies in recent months that have restated their company's book values in accordance with generally accepted accounting principles. The book value - which includes nontangible goodwill - is restated when that amount gets out of balance with the fair market value of a company's assets.

The latter includes value of outstanding shares of stock. The restatement represents a 15 percent to 21 percent drop in the company's $3.246 billion book value stated as of Dec. 30.

The change will not affect cash flows but will reduce reported earnings per common share, resulting in a loss for the quarter ending March 30, and for the full fiscal year ending Sept. 28, according to a news release from the company.

"We believe the current stock price understates the value of our company, as well as the future of our industry," said Mary Junck, Lee chairman and chief executive officer. "Although accounting rules require us to reflect these charges in our financial statements, we remain positive about the future of our business and prospects for continued growth when the current economic downturn subsides. Our own projections of the future cash flows of Lee are far superior to the expectations reflected in our stock price today."

Lee Enterprises owns 50 daily newspapers, including The Pantagraph, and joint interest in five others. It also owns numerous online sites - including pantagraph.com - and more than 300 weekly newspapers and specialty publications in 23 states.

"A truer assessment of our value and future is this: Our audiences continue to grow, both in print and online," Junck said. "On average, we reach more than 70 percent of all the adults in our markets, with strength across all age groups. No competitor comes close to delivering such a massive audience, and no competitor can match our strong local news, information and advertising."