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Related party transactions
 9 Months Ended
Feb. 23, 2025
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
Alcon has been and continues to be one of the Company's largest customers, comprising 43% of its revenues for the nine months ended February 23, 2025. On May 22, 2023, Alcon entered into the Term Loan Credit Facility with the Company as described in note 10. This new relationship as the Company's largest creditor, combined with its existing position as one of the Company's largest customers, caused management to conclude that Alcon has the ability to exert significant influence over the Company. Accordingly, management designated Alcon as a related party beginning in May 2023.
The following list summarizes Alcon's transactions with the Company:
•Customary current financial positions for a customer of Alcon's size, including accounts receivable, contract liabilities and revenue, each as presented in the consolidated balance sheets and statements of operations. Alcon has provided the Company guaranteed contractual minimum purchasing commitments, and the Company is required to maintain certain manufacturing capacity levels, each through 2031;
•Cash advances Alcon provided to the Company to purchase and install Alcon-owned equipment on the Company's premises totaling $465 and $1,207 at February 23, 2025 and May 26, 2024, respectively;
•A significant noncurrent contract liability of $4,053 and current contract liability of $918, representing a prepayment Alcon made to the Company in the fourth quarter of fiscal 2024 of $5,500 that was initially recorded at present value due to the existence of a significant financing component. This contract liability will be settled beginning January 2026 by issuing twelve monthly credit memos to Alcon totaling $5,500. The contract liability is being accreted to its settlement value via charges to interest expense, related party. See note 15 for additional information;
•Proceeds of $142,270 used to payoff prior borrowings from term loans issued in May 2023. The term loan principal plus accrued interest has grown to $169,287 through February 23, 2025 as a result of 10% interest paid-in-kind. See note 10 for additional information; and
•Alcon purchased equipment in May 2023 for $7,730 that it is leasing back to the Company in exchange for quarterly payments over a ten-year period. Payments to Alcon under the lease were $295 and $306 for the three-month periods ended February 23, 2025 and February 25, 2024, respectively, and $893 and $667 for the respective nine-month periods then ended. See note 10 for additional information.