572
Souter, J., dissenting
ture net revenues to be generated by the 460,000 people who subscribed to the eight Booth newspapers as of the date of sale, May 31, 1977. Because these customers had neither paid in advance nor agreed to subscribe for any set term, see Brief for Petitioner 4, n. 5; ante, at 550, n. 4, they were merely at-will subscribers; the value of their expected future custom was capitalized as the asset Ledger seeks to depreciate.
However much Ledger claims this asset to be something different from "goodwill," the settled meaning of the term is flatly at odds with Ledger's contention. Since the days of Justice Story, we have understood the concept of "goodwill" to be anchored in the patronage a business receives from "constant or habitual" customers. See, e. g., Metropolitan Bank v. St. Louis Dispatch Co., 149 U. S. 436, 446 (1893); Des Moines Gas Co. v. Des Moines, 238 U. S. 153 (1915); see also Cruttwell v. Lye, 17 Ves. Jr. 335, 346, 34 Eng. Rep. 129, 134 (Ch. 1810) (opinion of Lord Eldon) (goodwill is "nothing more than the probability, that the old customers will resort to the old place"). Although this Court has not had occasion to provide a precise definition of the term as it appears in the depreciation regulation, the Courts of Appeals have consistently held that "goodwill," in this context, refers to "the expectancy of continued patronage" from existing customers or, alternatively, to the prospect that "the old customers will resort to the old place." See, e. g., Winn-Dixie Montgomery, Inc. v. United States, 444 F. 2d 677, 681 (CA5 1971); Commissioner v. Seaboard Finance Co., 367 F. 2d 646, 649 (CA9 1966); Boe v. Commissioner, 307 F. 2d 339, 343 (CA9 1962); Dodge Brothers, Inc. v. United States, 118 F. 2d 95, 101 (CA4 1941); see also Golden State Towel & Linen Service, Ltd. v. United States, 179 Ct. Cl. 300, 305-309, 373 F. 2d 938, 941-943 (1967); Karan v. Commissioner, 319 F. 2d 303, 306 (CA7 1963) (goodwill denotes an expectancy that a customer relationship will continue "without contractual compulsion"). Thus, the Government justifiably concludes that
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