20. Tax Receivable Agreements

Upon the consummation of the Merger, we assumed obligations related to certain tax receivable agreements (collectively, the “tax receivable agreements”) entered into by the Joint Venture with its current and former owners. Depending on whether the respective tax receivable agreements were assumed as part of the Merger or became effective as result of the Merger, the liabilities related to the tax receivable agreements are subject to differing accounting models as explained below.

Under the tax receivable agreements assumed in connection with the Merger, we are obligated to make payments to certain former stockholders as well as to affiliates of The Blackstone Group, Inc., some of whom are considered related parties. The cash payments made are equal to 85% of the applicable cash savings realized or expected to be realized for the applicable tax receivable agreements. As the payments are due to both current and former owners, we have separately presented the estimated aggregated payments due to related parties in future fiscal years in the table below.

McKesson Tax Receivable Agreement

In connection with the closing of the Merger, we, along with the Joint Venture, the subsidiaries of McKesson that served as members of the Joint Venture and McKesson entered into a tax receivable agreement (the “McKesson Tax Receivable Agreement”). The McKesson Tax Receivable Agreement generally requires payment to affiliates of McKesson of 85% of certain cash tax savings realized (or, in certain circumstances, deemed to be realized) in periods ending on or after the date on which McKesson ceases to own at least 20% of the Joint Venture as a result of (i) certain amortizable tax basis in assets transferred to the Joint Venture at the Contribution Agreement Closing and (ii) imputed interest deductions and certain other tax attributes arising from payments under the McKesson Tax Receivable Agreement.

Future Tax Receivable Agreement Payments

Based on facts and circumstances at March 31, 2021, we estimate the aggregate payments due under our tax receivable agreements in future fiscal years to be as follows:


	Related Party Tax Receivable Agreements		McKesson Tax Receivable Agreement		Other Tax Receivable Agreements		Total
2022	$	10,766	$	189	$	10,457	$	21,412
2023		11,392		24,748		10,761		46,901
2024		10,626		16,478		10,295		37,399
2025		37,213		20,052		16,557		73,822
2026		46,623		57,196		19,350		123,169
Thereafter		63,323		39,785		49,777		152,885
Gross expected payments		179,943		158,448		117,197		455,588
Less: Amounts representing discount		(66,026)		—		(35,917)		(101,943)
Total tax receivable agreement obligations		113,917		158,448		81,280		353,645
Less: Current portion due		(10,766)		(189)		(10,457)		(21,412)
Tax receivable agreement long-term obligations	$	103,151	$	158,259	$	70,823	$	332,233

The timing and/or amount of aggregate payments due may vary based on a number of factors, including the amount of net operating losses and income tax rates. The amount of aggregate payments shown above do not reflect any potential impacts from the UHG Transaction.