Document and Entity Information
Document and Entity Information | 12 Months Ended |
May 31, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | May 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | EDU |
Entity Registrant Name | New Oriental Education & Technology Group Inc. |
Entity Central Index Key | 1,372,920 |
Current Fiscal Year End Date | --05-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 157,687,444 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 641,018 | $ 709,209 |
Restricted cash | 44 | 110 |
Term deposits | 195,085 | 86,706 |
Short-term investments | 1,312,942 | 819,229 |
Accounts receivable, net of allowance of US$408 and US$585 as of May 31, 2016 and 2017, respectively | 3,343 | 3,747 |
Inventory, net | 31,742 | 27,303 |
Prepaid expenses and other current assets, net | 119,397 | 99,677 |
Amounts due from related parties, current | 5,948 | 4,539 |
Long-term investments due within one year | 16,743 | 118,816 |
Total current assets | 2,326,262 | 1,869,336 |
Restricted cash, non-current | 3,608 | 3,811 |
Property and equipment, net | 282,800 | 237,698 |
Land use rights, net | 3,668 | 3,906 |
Amounts due from related parties, non-current | 1,748 | 1,741 |
Long-term deposit | 24,023 | 14,901 |
Long-term prepaid rent | 849 | 235 |
Intangible assets, net | 4,005 | 2,618 |
Goodwill, net | 14,083 | 10,545 |
Long-term investments, net | 217,259 | 178,863 |
Deferred tax assets, non-current, net | 28,858 | 24,341 |
Other non-current assets | 17,816 | 6,839 |
Total assets | 2,924,979 | 2,354,834 |
Current liabilities | ||
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to the Company of US$21,318 and US$24,138 as of May 31, 2016 and 2017, respectively) | 24,258 | 21,395 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to the Company of US$192,332 and US$238,864 as of May 31, 2016 and 2017, respectively) | 260,700 | 217,044 |
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to the Company of US$30,899 and US$40,306 as of May 31, 2016 and 2017, respectively) | 51,045 | 32,806 |
Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entities without recourse to the Company of US$29 and US$48 as of May 31, 2016 and 2017, respectively) | 48 | 42 |
Deferred revenue (including deferred revenue of the consolidated variable interest entities without recourse to the Company of US$616,299 and US$833,932 as of May 31, 2016 and 2017, respectively) | 866,630 | 646,903 |
Total current liabilities | 1,202,681 | 918,190 |
Deferred tax liabilities, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to the Company of US$1,432 and US$2,174 as of May 31, 2016 and 2017, respectively) | 2,220 | 1,982 |
Total liabilities | 1,204,901 | 920,172 |
Commitments and Contingencies (Note 18) | ||
Equity | ||
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2016 and 2017; 158,379,387 shares issued as of May 31, 2016 and 2017; 157,439,397 and 157,687,444 shares outstanding as of May 31, 2016 and 2017, respectively) | 1,584 | 1,584 |
Treasury stock | (7) | (9) |
Additional paid-in capital | 249,126 | 223,422 |
Statutory reserves | 219,975 | 184,697 |
Retained earnings | 1,171,109 | 931,930 |
Accumulated other comprehensive income | 39,161 | 62,948 |
Total New Oriental Education & Technology Group Inc. shareholders' equity | 1,680,948 | 1,404,572 |
Noncontrolling interests | 39,130 | 30,090 |
Total equity | 1,720,078 | 1,434,662 |
Total liabilities and equity | $ 2,924,979 | $ 2,354,834 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 585 | $ 408 |
Accounts payable, consolidated variable interest entity without recourse | 24,138 | 21,318 |
Accrued expenses and other current liabilities, consolidated variable interest entity without recourse | 238,864 | 192,332 |
Income taxes payable, consolidated variable interest entity without recourse | 40,306 | 30,899 |
Amounts due to related parties, consolidated variable interest entity without recourse | 48 | 29 |
Deferred revenue, consolidated variable interest entity without recourse | 833,932 | 616,299 |
Deferred tax liabilities, non-current consolidated variable interest entity without recourse | $ 2,174 | $ 1,432 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 158,379,387 | 158,379,387 |
Common stock, shares outstanding | 157,687,444 | 157,439,397 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
NET REVENUES | |||
Educational programs and services | $ 1,608,954 | $ 1,309,339 | $ 1,102,974 |
Books and others | 190,555 | 169,009 | 143,792 |
Total net revenues | 1,799,509 | 1,478,348 | 1,246,766 |
Operating costs and expenses | |||
Cost of revenues | (749,586) | (614,364) | (526,320) |
Selling and marketing | (232,826) | (197,897) | (188,483) |
General and administrative | (554,948) | (471,010) | (378,434) |
Total operating costs and expenses | (1,537,360) | (1,283,271) | (1,093,237) |
Gain on disposal of subsidiaries | 3,760 | ||
OPERATING INCOME | 262,149 | 198,837 | 153,529 |
OTHER INCOME, NET | |||
Interest income | 61,445 | 66,861 | 66,605 |
Realized gain from long-term investments | 7,086 | ||
Impairment loss from long-term investments | (2,338) | 0 | 0 |
Miscellaneous income, net | 2,367 | 1,586 | 342 |
Income before income taxes and loss from equity method investments | 330,709 | 267,284 | 220,476 |
Benefit (Provision) for income taxes: | |||
Current | (51,142) | (39,467) | (31,552) |
Deferred | 518 | 1,936 | 5,331 |
Provision for income taxes | (50,624) | (37,531) | (26,221) |
Loss from equity method investments | (3,289) | (4,425) | (1,537) |
Net income | 276,796 | 225,328 | 192,718 |
Add: Net loss (income) attributable to noncontrolling interests | (2,339) | (444) | 295 |
Net income attributable to New Oriental Education & Technology Group Inc. | $ 274,457 | $ 224,884 | $ 193,013 |
Net income per share (Note 16) | |||
- Basic | $ 1.74 | $ 1.43 | $ 1.23 |
- Diluted | $ 1.74 | $ 1.43 | $ 1.23 |
Weighted average shares used in calculating basic net income per share | 157,551,320 | 156,782,439 | 156,438,606 |
Weighted average shares used in calculating diluted net income per share | 157,986,394 | 157,391,686 | 157,302,174 |
Share-based compensation expense included in: | |||
Share-based compensation expense | $ 20,287 | $ 16,810 | $ 15,689 |
General and Administrative Expense [Member] | |||
Share-based compensation expense included in: | |||
Share-based compensation expense | $ 20,287 | $ 16,810 | $ 15,689 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 276,796 | $ 225,328 | $ 192,718 |
Other comprehensive income, net of tax | |||
Foreign currency translation adjustment | (47,440) | (72,464) | 12,006 |
Unrealized gain on available-for-sale investments, net of tax effect of nil, nil and US$3,762 for years ended May 31, 2015, 2016 and 2017, respectively | 22,521 | 36,635 | 21,940 |
Other comprehensive income / (loss) | (24,919) | (35,829) | 33,946 |
Comprehensive income | 251,877 | 189,499 | 226,664 |
Less: comprehensive (loss) / income attributable to noncontrolling interests | 1,207 | 1,172 | (295) |
Comprehensive income attributable to New Oriental Education & Technology Group Inc. | $ 250,670 | $ 188,327 | $ 226,959 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) $ in Thousands | 12 Months Ended |
May 31, 2017USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Unrealized gain on available-for-sale investments, tax effect | $ 3,762 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Statutory reserve [Member] | Retained Earnings [Member] | Total New Oriental Education & Technology Group Inc. Shareholders' Equity [Member] | Noncontrolling Interests [Member] | |
Beginning Balance at May. 31, 2014 | $ 1,025,758 | $ 1,584 | $ 174,009 | $ (6) | $ 65,559 | $ 129,868 | $ 654,744 | $ 1,025,758 | ||
Beginning Balance, shares at May. 31, 2014 | 157,758,666 | |||||||||
Reissuance of treasury stock for the exercises of employee share options | 11,362 | 11,353 | 9 | 11,362 | ||||||
Reissuance of treasury stock for the exercises of employee share options, shares | 953,514 | |||||||||
Reissuance of treasury stock for the vesting of non-vested equity shares | (6) | 6 | ||||||||
Reissuance of treasury stock for the vesting of non-vested equity shares, shares | 575,432 | |||||||||
Share-based compensation expense | 15,689 | 15,689 | 15,689 | |||||||
Transfer to statutory reserves | 23,742 | (23,742) | ||||||||
Share repurchase | [1] | $ (59,420) | (59,392) | (28) | (59,420) | |||||
Share repurchase, shares | (2,800,849) | (2,800,849) | ||||||||
Net income | $ 192,718 | 193,013 | 193,013 | $ (295) | ||||||
Foreign currency translation adjustment | 12,006 | 12,006 | 12,006 | |||||||
Unrealized gain on available-for-sale investments, net of tax effect of nil, nil and US$3,762 | 21,940 | 21,940 | 21,940 | |||||||
Capital injection of noncontrolling interest | 3,791 | 3,791 | ||||||||
Ending Balance at May. 31, 2015 | 1,223,844 | $ 1,584 | 141,653 | (19) | 99,505 | 153,610 | 824,015 | 1,220,348 | 3,496 | |
Ending Balance, shares at May. 31, 2015 | 156,486,763 | |||||||||
Reissuance of treasury stock for the exercises of employee share options | 2,431 | 2,428 | 3 | 2,431 | ||||||
Reissuance of treasury stock for the exercises of employee share options, shares | 240,304 | |||||||||
Reissuance of treasury stock for the vesting of non-vested equity shares | (7) | 7 | ||||||||
Reissuance of treasury stock for the vesting of non-vested equity shares, shares | 712,330 | |||||||||
Share-based compensation expense | 16,810 | 16,810 | 16,810 | |||||||
Transfer to statutory reserves | 31,853 | (31,853) | ||||||||
Net income | 225,328 | 224,884 | 224,884 | 444 | ||||||
Foreign currency translation adjustment | (72,464) | (72,193) | (72,193) | (271) | ||||||
Unrealized gain on available-for-sale investments, net of tax effect of nil, nil and US$3,762 | 36,635 | 35,636 | 35,636 | 999 | ||||||
Capital injection of noncontrolling interest | 68,498 | 39,579 | 39,579 | 28,919 | ||||||
Ending Balance at May. 31, 2016 | $ 1,434,662 | $ 1,584 | 223,422 | (9) | 62,948 | 184,697 | 931,930 | 1,404,572 | 30,090 | |
Ending Balance, shares at May. 31, 2016 | 158,379,387 | 157,439,397 | ||||||||
Dividend declared | [2] | $ (62,668) | (62,668) | (62,668) | ||||||
Equity restructuring of a subsidiary | [3] | 23,214 | (766) | (22,448) | ||||||
Repurchase shares from noncontrolling interest | (3,752) | (255) | (255) | (3,497) | ||||||
Reissuance of treasury stock for the exercises of employee share options | $ 256 | 256 | 256 | |||||||
Reissuance of treasury stock for the exercises of employee share options, shares | 2,256,592 | 48,047 | ||||||||
Reissuance of treasury stock for the vesting of non-vested equity shares | (2) | 2 | ||||||||
Reissuance of treasury stock for the vesting of non-vested equity shares, shares | 2,297,814 | 200,000 | ||||||||
Share-based compensation expense | $ 20,287 | 20,287 | 20,287 | |||||||
Transfer to statutory reserves | 35,278 | (35,278) | ||||||||
Net income | 276,796 | 274,457 | 274,457 | 2,339 | ||||||
Foreign currency translation adjustment | (47,440) | (46,331) | (46,331) | (1,109) | ||||||
Unrealized gain on available-for-sale investments, net of tax effect of nil, nil and US$3,762 | 22,521 | 22,544 | 22,544 | (23) | ||||||
Ending Balance at May. 31, 2017 | $ 1,720,078 | $ 1,584 | 249,126 | $ (7) | $ 39,161 | $ 219,975 | $ 1,171,109 | 1,680,948 | 39,130 | |
Ending Balance, shares at May. 31, 2017 | 158,379,387 | 157,687,444 | ||||||||
Capital injection of noncontrolling interests and new noncontrolling interest recognized in an acquisition | $ 12,996 | $ 5,163 | $ 5,163 | $ 7,833 | ||||||
[1] | On July 22, 2014, the Company's board of directors authorized the repurchase of up to US$120,000 of the Company's shares during the period from July 28, 2014 through March 31, 2015. 2,800,849 shares were repurchased in the year ended May 31, 2015. | |||||||||
[2] | On July 19, 2015, the Company declared a special cash dividend in the amount of US$0.4 per ADS. The aggregate amount of cash dividend paid was US$62,668, which was funded by retained earnings. The dividend was fully paid on October 7, 2015 to shareholders of record at the close of business on September 4, 2015. | |||||||||
[3] | In January 2016, Beijing New Oriental Xuncheng Network Technology Co., Ltd. ("Xuncheng"), a subsidiary of the Group, transformed from a limited liability company to a joint stock limited company. The Group's accumulated retained earnings and statutory reserve related to Xuncheng were reclassified to additional paid-in-capital in the consolidation financials statements. |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) | 12 Months Ended | |
May 31, 2016 | Jul. 22, 2014 | |
Shares repurchase approved amount | $ 120,000,000 | |
Special cash dividend declared per share | $ 0.4 | |
Cash paid for dividend | $ 62,668,000 | |
Retained Earnings [Member] | ||
Cash paid for dividend | $ 62,668,000 | |
Fiscal Year 2016 Dividend [Member] | ||
Special cash dividend declared date | Jul. 19, 2015 | |
Dividend payment date | Oct. 7, 2015 | |
Shareholders date of record | Sep. 4, 2015 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 276,796 | $ 225,328 | $ 192,718 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property and equipment | 53,864 | 47,281 | 46,663 |
Amortization of intangible assets | 1,419 | 1,122 | 607 |
Amortization of land use rights | 106 | 112 | 116 |
Loss on disposal of property and equipment | 1,747 | 2,061 | 2,904 |
Gain on disposal of subsidiaries | (3,760) | ||
Goodwill impairment | 1,682 | 0 | 0 |
Impairment loss from long-term investments | 2,338 | 0 | 0 |
Realized gain from long-term investments | (7,086) | ||
Share-based compensation expense | 20,287 | 16,810 | 15,689 |
Allowance for doubtful accounts | 486 | 904 | 680 |
Loss from equity method investments | 3,289 | 4,425 | 1,537 |
Deferred income taxes | (518) | (1,936) | (5,548) |
Changes in operating assets and liabilities | |||
Accounts receivables | (75) | (187) | (2,096) |
Prepaid expenses and other current assets | (14,796) | (7,711) | (22,503) |
Inventory | (5,376) | (5,649) | (1,750) |
Long-term deposit | (9,652) | (532) | (2,598) |
Long term prepaid rent | (624) | 169 | 668 |
Accounts payable | 3,592 | 4,830 | 9,248 |
Accrued expenses and other current liabilities | 35,774 | 47,945 | 11,120 |
Income taxes payable | 18,529 | 7,878 | 7,607 |
Deferred revenue | 237,635 | 179,583 | 117,086 |
Amounts due to related parties | 8 | (1,887) | 1,994 |
Amounts due from related parties | (1,288) | 1,108 | 3 |
Net cash (used in) provided by operating activities | 618,137 | 517,894 | 374,145 |
Cash flows from investing activities | |||
Restricted cash paid for establishing new schools and subsidiaries | (1,197) | (5,461) | (2,055) |
Release of restricted cash for establishing new schools and subsidiaries | 1,333 | 4,747 | 976 |
Investments in bank deposits maturing over three months | (130,000) | (64,540) | (32,703) |
Settlement of bank deposits maturing over three months | 18,836 | 42,603 | 62,924 |
Investments in short-term held-to-maturity investments | (1,343,198) | (1,112,172) | (943,476) |
Settlement of short-term held-to-maturity investments | 820,380 | 851,250 | 992,117 |
Purchase of property and equipment | (105,736) | (64,401) | (55,318) |
Proceeds from disposal of property and equipment | 2,807 | 1,310 | 1,738 |
Purchase of China Management Software Institute, net of cash acquired of US$68 | (4,551) | ||
Purchase of Qingdao Alice, net of cash acquired of US$2,306 (Note 3) | (10,623) | ||
Purchase of Ainuoshida, net of cash acquired of US$2,499 (Note 3) | (908) | ||
Payments for available-for-sale investments | (43,498) | (78,764) | (26,076) |
Payments for equity method investments | (1,473) | (468) | (10,955) |
Purchase of held-to-maturity investments | (145,415) | ||
Settlement of held-to-maturity investments | 112,200 | 115,178 | |
Proceed from disposal of cost method investment | 540 | ||
Loans provided to related parties | (1,810) | (2,575) | |
Net cash used in investing activities | (672,264) | (309,737) | (173,417) |
Cash flows from financing activities | |||
Proceeds from issuances of common shares upon exercise of share option | 542 | 2,176 | 11,332 |
Cash paid for shares repurchased | (59,420) | ||
Cash paid for dividend | (62,668) | ||
Capital contribution from noncontrolling interests | 8,807 | 69,747 | 3,791 |
Repurchase shares from noncontrolling interests | (3,752) | ||
Net cash (used in) provided by financing activities | 9,349 | 5,503 | (44,297) |
Effects of exchange rate changes | (23,413) | (35,749) | 3,274 |
Net change in cash and cash equivalents | (68,191) | 177,911 | 159,705 |
Cash and cash equivalents at beginning of year | 709,209 | 531,298 | 371,593 |
Cash and cash equivalents at end of year | 641,018 | 709,209 | 531,298 |
Supplement disclosure of cash flow information | |||
Income taxes paid | 36,665 | 32,037 | 23,896 |
Non-cash investing and financing activities: | |||
Payable for purchase of property and equipment | $ 21,445 | 11,953 | 7,433 |
Payable for long term available-for-sale investment | $ 1,452 | ||
Beijing Dianshijingwei Technology Co.,Ltd [Member] | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||
Gain on disposal of subsidiaries | (3,760) | ||
Cash flows from investing activities | |||
Proceeds from disposal of subsidiaries | 1,520 | ||
Boost Caring [Member] | |||
Cash flows from investing activities | |||
Proceeds from disposal of subsidiaries | $ 1,496 |
Consolidated Statements of Ca10
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2015 |
China Management Software Institute [Member] | ||
Purchase of business, cash acquired | $ 68 | |
Qingdao Alice [Member] | ||
Purchase of business, cash acquired | $ 2,306 | |
Beijing Ainuoshida Education and Technology Company Limited [Member] | ||
Purchase of business, cash acquired | $ 2,499 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Principal Activities | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES New Oriental Education & Technology Group Inc. (the “Company”) was incorporated in the Cayman Islands. The Company, its wholly owned subsidiaries and its variable interest entities, New Oriental Education & Technology Group Co., Ltd. (“New Oriental China”) and its schools and subsidiaries and Xuncheng and its subsidiary (collectively, the “VIEs”), are collectively referred to as the “Group”. The Group provides educational services in the People’s Republic of China (the “PRC”) primarily under the “New Oriental” brand. The Group offers a wide range of educational programs, services and products, consisting primarily of language training and test preparation, primary and secondary school education, online education, content development and distribution, overseas study consulting services, pre-school education and study tour. As of May 31, 2017, details of the Company’s subsidiaries, variable interest entity and its schools and subsidiaries were as follows: Name Date of Place of Legal Principal activity Subsidiaries of the Company: Beijing Decision Education & Consulting Company Limited (“Beijing Decision”) April 20, 2005 PRC 100% Educational information system and other consulting services Beijing Judgment Education & Consulting Company Limited (“Beijing Judgment”) April 20, 2005 PRC 100% Educational consulting and Beijing Hewstone Technology Company Limited (“Beijing Hewstone”) April 20, 2005 PRC 100% Educational software and distribution and other Beijing Pioneer Technology Company Limited (“Beijing Pioneer”) January 8, 2009 PRC 100% Educational software and distribution and other Shanghai Smart Words Software Technology Company Limited (“Shanghai Smart Words”) December 8, 2010 PRC 100% Educational consulting and Beijing Smart Wood Software Technology Company Limited (“Beijing Smart Wood”) December 21, 2011 PRC 100% Educational consulting and Beijing Joy Tend Technology Company Limited (“Beijing Joy Tend”) January 31, 2013 PRC 100% Educational consulting and Subsidiaries of the Company: Beijing Right Time Technology Company Limited (“Beijing Right Time”) January 31, 2013 PRC 100% Educational consulting Beijing Sincerity Technology Company Limited (“Beijing Sincerity”) April 12, 2013 PRC 100% Educational consulting Beijing Magnificence Technology Company Limited (“Beijing Magnificence”) November 1, 2013 PRC 100% Educational consulting Beijing Top Technology Company Limited (“Beijing Top”) November 13, 2013 PRC 100% Educational consulting Beijing Shenghe Technology Company Limited (“Beijing Shenghe”) May 27, 2014 PRC 100% Educational consulting Beijing Jinghong Software Technology Company Limited (“Beijing Jinghong”) September 18, 2016 PRC 100% Educational consulting Beijing New Oriental Walkite International Travel Co., Ltd. May 22, 2012 PRC 100% Consulting Walkite International Academy Co., Ltd. March 16, 2015 U.K. 100% Consulting Beijing New Road Information Consulting Services Co., Ltd. (“New Road”) March 6, 2015 PRC 51% Consulting Walkite International Academy (U.S.A.) Co., Ltd. April 13, 2015 U.S.A. 100% Consulting Elite Concept Holdings Limited (“Elite Concept”) December 3, 2007 Hong Kong 100% Educational Consulting Winner Park Limited (“Winner Park”) December 9, 2008 Hong Kong 100% Educational Consulting Smart Shine International Limited (“Smart Shine”) December 9, 2008 Hong Kong 100% Educational Consulting Abundant State Limited (“Abundant”) March 20, 2013 BVI 100% Educational Consulting Koolearn Holding Limited (“Koolearn HK”) June 21, 2013 Hong Kong 100% Educational Consulting New Oriental Vision Overseas Consulting Australia Pty Ltd. January 25, 2017 Australia 100% Consulting Variable interest entity of the Company: New Oriental Education & Technology Group Co., Ltd (“New Oriental China”) August 2, 2001 PRC N/A Education consulting, Schools and subsidiaries of New Oriental China: Beijing Haidian District Privately-Funded New Oriental School (“Beijing Haidian School”) October 5, 1993 PRC N/A Language and post- Shanghai Yangpu District New Oriental Advanced Study School June 1, 2000 PRC N/A Language education Guangzhou Haizhu District Privately-Funded New Oriental Training School (“Guangzhou Haizhu School”) (a) September 8, 2000 PRC N/A Language education Guangzhou New Oriental Training School (“Guangzhou School”) (a) August 20, 2013 PRC N/A Language education Guangzhou Panyu District Privately-Funded New Oriental Training Centre (“Guangzhou Panyu School”) (a) June 19, 2013 PRC N/A Language education Wuhan New Oriental Training School April 28, 2002 PRC N/A Language education Tianjin New Oriental Training School August 21, 2002 PRC N/A Language education Xi’an Yanta District New Oriental School November 26, 2002 PRC N/A Language education Nanjing Gulou New Oriental Advanced Study School November 28, 2002 PRC N/A Language education Shenzhen New Oriental Training School October 15, 2003 PRC N/A Language education Shenyang New Oriental Foreign Language Training School June 18, 2003 PRC N/A Language education Chongqing New Oriental Training School August 15, 2003 PRC N/A Language education Chengdu New Oriental School August 18, 2003 PRC N/A Language education Xiangyang New Oriental Training School October 26, 2004 PRC N/A Language education Changsha Furong District New Oriental Training School May 25, 2005 PRC N/A Language education Jinan New Oriental School May 31, 2005 PRC N/A Language education Taiyuan New Oriental Training School April 20, 2005 PRC N/A Language education Ha’er Bin Nangang District New Oriental Training School May 20, 2005 PRC N/A Language education Changchun New Oriental Training School July 26, 2005 PRC N/A Language education Hangzhou New Oriental Advanced Study School (“Hangzhou School”) (b) July 21, 2005 PRC N/A Language education Hangzhou New Oriental Education & Consulting Company Limited May 8, 2012 PRC N/A Language education Fuyang New Oriental Training School (“Fuyang School”) (b) October 22, 2012 PRC N/A Language education Zhengzhou New Oriental Training School July 19, 2005 PRC N/A Language education Zhuzhou New Oriental Training School April 30, 2006 PRC N/A Language education Shijiazhuang New Oriental School April 3, 2006 PRC N/A Language education Suzhou New Oriental School April 26, 2006 PRC N/A Language education Anshan New Oriental Training School June 13, 2006 PRC N/A Language education Schools and subsidiaries of New Oriental China: Hefei New Oriental Foreign Language Training School June 13, 2006 PRC N/A Language education Yunnan New Oriental Training School June 13, 2006 PRC N/A Language education Wuxi New Oriental Advanced Study School August 14, 2006 PRC N/A Language education Fuzhou Gulou District New Oriental Training School September 1, 2006 PRC N/A Language education Nanchang Donghu District New Oriental Language School March 16, 2007 PRC N/A Language education Yichang Xiling District New Oriental School January 1, 2006 PRC N/A Language education Jingzhou New Oriental School April 10, 2007 PRC N/A Language education Dalian New Oriental Training School June 12, 2007 PRC N/A Language education Huangshi New Oriental Training School March 17, 2008 PRC N/A Language education Ningbo New Oriental School April 16, 2008 PRC N/A Language education Lanzhou Chengguan District New Oriental School March 19, 2008 PRC N/A Language education Xiamen Siming District New Oriental Education Training School July 8, 2008 PRC N/A Language education Qingdao New Oriental Language Training School August 5, 2008 PRC N/A Language education Nanning New Oriental Education Training School September 18, 2008 PRC N/A Language education Xuzhou New Oriental Advanced Study School March 31, 2009 PRC N/A Language education Xiangtan Yuhu District New Oriental School July 15, 2010 PRC N/A Language education Zhenjiang New Oriental School July 19, 2010 PRC N/A Language education Luoyang New Oriental School November 25, 2010 PRC N/A Language education Nantong Chongchuan District New Oriental School December 28, 2010 PRC N/A Language education Jilin Chuanying District New Oriental School March 17, 2011 PRC N/A Language education Guiyang Yunyan District New Oriental School March 21, 2011 PRC N/A Language education Inner Mongolia Hohhot New Oriental School April 2, 2011 PRC N/A Language education Foshan New Oriental School September 1, 2011 PRC N/A Language education Tangshan Lubei District New Oriental School May 25, 2011 PRC N/A Language education Urumqi New Oriental School May 22, 2011 PRC N/A Language education Shiyan New Oriental School May 23, 2011 PRC N/A Language education Quanzhou Fengze District New Oriental Education Training School June 26, 2015 PRC N/A Language education Wenzhou New Oriental School August 14, 2015 PRC N/A Language education Weifang New Oriental Training School October 10, 2015 PRC N/A Language education Shanghai New Oriental Education & Training Company Limited September 15, 2015 PRC N/A Language education Zhuhai Xiangzhou District New Oriental Training Centre December 11, 2015 PRC N/A Language education Yangzhou Guangling District New Oriental Training Centre March 24, 2016 PRC N/A Language education Jinzhou New Oriental Training School April 19, 2016 PRC N/A Language education Baoding Jingxiu District New Oriental Training School July 8, 2016 PRC N/A Language education Taian New Oriental School September 9, 2016 PRC N/A Language education Chongqing Yongchuan District New Oriental Training School September 25, 2016 PRC N/A Language education Yantai Zhifu District New Oriental Foreign LanguageTraining School November 11, 2016 PRC N/A Language education Kaifeng New Oriental Education Information Consulting Co., Ltd. October 31, 2016 PRC N/A Language education Beijing Shengdeweixin Education & Technology Co., Ltd. November 22, 2016 PRC N/A Language education Cangzhou Yunhe District New Oriental Education Training School November 29, 2016 PRC N/A Language education Qinghuangdao Haigang District New Oriental Training School January 17, 2017 PRC N/A Language education Zhangzhou Development Zone New Oriental Education Training School March 22, 2017 PRC N/A Language education Anyang Beiguan District New Oriental Education Training School May 16, 2017 PRC N/A Language education Nanyang New Oriental Education Training Co., Ltd. April 19, 2017 PRC N/A Language education Handan Congtai District New Oriental Training School April 27, 2017 PRC N/A Language education Beijing Shuangshi Oriental Education & Technology Co., Ltd. April 27, 2017 PRC N/A Educational consulting Changchun Tongwen Gaokao Training School (“Tongwen Gaokao”) October 27, 2008 PRC N/A College admission examination training Changchun Tongwen Senior High School (“Tongwen High Schiool”) October 27, 2008 PRC N/A Primary secondary China Management Software Institute (“CMSI”) September 1, 2012 PRC N/A Higher education Schools and subsidiaries of New Oriental China: Beijing New Oriental Yangzhou Foreign Language School June 6, 2002 PRC N/A Primary secondary Yangzhou Guangling District New Oriental Kindergarten of Stars (“Yangzhou Kindergarten”) August 26, 2014 PRC N/A Kindergarten Beijing Changping New Oriental Foreign Language School (“Changping school”) July 19, 2010 PRC N/A Primary secondary Beijing New Oriental Dogwood Cultural Communications Co., Ltd. May 16, 2003 PRC N/A Sales of educational Beijing New Oriental Dogwood, Bookstore, Audio & Video Co., Ltd. March 2, 2004 PRC N/A Sales of educational Chengdu New Oriental Dogwood Bookstore Products Co., Ltd. January 18, 2004 PRC N/A Sales of educational Chongqing New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. February 25, 2004 PRC N/A Sales of educational Guangzhou Dogwood Bookstore & Audio-Visual Products Co., Ltd. November 11, 2003 PRC N/A Sales of educational Wuhan New Oriental Dogwood Bookstore & Audio- Visual Products Co., Ltd. December 16, 2003 PRC N/A Sales of educational Xi’an New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. June 3, 2003 PRC N/A Sales of educational Shanghai Dogwood Bookstore & Audio-Visual Products Co., Ltd. September 28, 2003 PRC N/A Sales of educational Changchun New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. October 8, 2005 PRC N/A Sales of educational Ha’er Bin New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. March 13, 2006 PRC N/A Sales of educational Taiyuan New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. July 12, 2006 PRC N/A Sales of educational Hangzhou Dogwood Bookstore Products Co., Ltd. July 25, 2007 PRC N/A Sales of educational Nanchang Dogwood Bookstore & Audio-Visual Products Co., Ltd. September 14, 2007 PRC N/A Sales of educational Kunming Dogwood Bookstore & Audio-Visual Products Co., Ltd. November 21, 2007 PRC N/A Sales of educational Dalian New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. March 25, 2008 PRC N/A Sales of educational Schools and subsidiaries of New Oriental China: Lanzhou New Oriental Dogwood Bookstore & Audio- Visual Products Co., Ltd. October 28, 2008 PRC N/A Sales of educational Suzhou New Oriental Dogwood Bookstore & Audio- Visual Products Co., Ltd. June 1, 2010 PRC N/A Sales of educational Xuzhou New Oriental Dogwood Bookstore & Audio- Visual Products Co., Ltd. September 29, 2010 PRC N/A Sales of educational Urumqi Dogwood Bookstore & Audio-Visual Products Co., Ltd. September 13, 2011 PRC N/A Sales of educational Hohhot Dogwood Bookstore & Audio-Visual Products Co., Ltd. February 7, 2012 PRC N/A Sales of educational Zhuhai New Oriental Dogwood Bookstore & Audio- Visual Products Co., Ltd. September 28, 2016 PRC N/A Sales of educational Beijing New Oriental Vision Overseas Consultancy Co., Ltd. February 19, 2004 PRC N/A Consulting Shanghai Vision Overseas Service Co., Ltd. March 24, 2011 PRC N/A Consulting Shandong New Oriental Vision Overseas Consultancy Co., Ltd. September 8, 2011 PRC N/A Consulting Shanxi New Oriental Vision Overseas Consultancy Co., Ltd. April 22, 2014 PRC N/A Consulting Fujian New Oriental Vision Overseas Consultancy Co., Ltd. May 13, 2014 PRC N/A Consulting Guangdong Vision Overseas Consultancy Co., Ltd. May 29, 2014 PRC N/A Consulting Xinjiang New Oriental Vision Overseas Consultancy Co., Ltd. July 9, 2014 PRC N/A Consulting Shaanxi New Oriental Vision Overseas Consultancy Co., Ltd. January 23, 2015 PRC N/A Consulting Tianjin New Oriental Vision Overseas Consultancy Co., Ltd. May 13, 2015 PRC N/A Consulting Inner Mongolia New Oriental Vision Overseas Consultancy Co., Ltd. May 29, 2015 PRC N/A Consulting Liaoning New Oriental Vision Overseas Consultancy Co., Ltd. June 10, 2015 PRC N/A Consulting New Oriental Vision Overseas Consulting (U.K.) Ltd. June 10, 2015 U.K. N/A Consulting Gansu New Oriental Vision Overseas Consultancy Co., Ltd. May 15, 2015 PRC N/A Consulting Qingdao New Oriental Vision Overseas Consultancy Co., Ltd. August 20, 2015 PRC N/A Consulting Hunan New Oriental Vision Overseas Consultancy Co., Ltd. November 3, 2015 PRC N/A Consult ing Beijing New Oriental Vision Overseas Service Co., Ltd. February 24, 2016 PRC N/A Consulting Beijing Ainuoshida Education & Technology Co., Ltd and its subsidiaries September 24, 2014 PRC N/A Consulting Schools and subsidiaries of New Oriental China: Beijing New Oriental Dogwood Advertisement Co., Ltd. (“Dogwood Advertisement”) January 20, 2004 PRC N/A Advertising Beijing New Oriental Xuncheng Network Technology Co., Inc.Ltd. (c) March 11, 2005 PRC N/A On-line education Beijing New Oriental Kuxuehuisi Network Technology Co., Ltd. February 1, 2013 PRC N/A On-line Beijing DongFangYouBo Network Technology Co., Ltd. June 23, 2016 PRC N/A On-line Leci Internet Technology (Beijing) Company Limited (“Leci Internet”) February 11, 2014 PRC N/A Educational consulting and Beijing Dongfangzhuoyong Investment Management Co., Ltd. April 29, 2014 PRC N/A Investment management Ningbo Meishan Bonded Port Area Hexin Oriental Asset Management Co., Ltd. April 28, 2017 PRC N/A Asset management Beijing New Oriental MEGAWAY Education & Consulting Co., Ltd. March 4, 2015 PRC N/A Educational consulting Beijing Aixuehuisi Education & Technology Co., Ltd. January 6, 2015 PRC N/A Technology Beijing Fishpond Software Technology Co., Ltd. November 24, 2015 PRC N/A Technology Beijing Bright the Future Education & Technology Co., Ltd. July 18, 2016 PRC N/A Consulting Beijing New Oriental Stars Education & Consulting Co., Ltd (“Stars”) July 11, 2007 PRC N/A Kindergarten Beijing Chao Yang District Kindergarten of Stars (“ChaoYang Kindergarten”) November 20, 2007 PRC N/A Kindergarten Nanjing Yuhuatai District New Oriental Kindergarten of Stars (“Nanjing Kindergarten”) April 10, 2009 PRC N/A Kindergarten Qingdao Alice Education & Technology Company Limited (“Qingdao Alice “) August 21, 2014 PRC N/A Kindergarten Qingdao Laoshan District Happy Alice Kindergarten (“Laoshan Alice”) December 4, 2014 PRC N/A Kindergarten Qingdao Happy Alice Kindergarten (“Qingdao Happy Alice”) November 29, 2005 PRC N/A Kindergarten Qingdao Chengyang District Happy Alice Kindergarten (“Chengyang Alice”) October 30, 2014 PRC N/A Kindergarten Beijing Chao Yang District Taiyanggong Kindergarten of Stars (“Taiyanggong Kindergarten”) January 20, 2017 PRC N/A Kindergarten (a) Guangzhou School and Guangzhou Panyu School were established in the year ended May 31, 2014. Although they are separate legal entities, from the perspective of the Group’s internal management, they together with Guangzhou Haizhu School are considered as one school since they are operated by the same local management in Guangzhou. (b) Although the Fuyang School is a separate legal entity, from the perspective of the Group’s internal management, Fuyang School and Hangzhou School are considered as one school since they are operated by the same local management in Hangzhou. (c) The contractual agreements between Xuncheng, New Oriental China and Chongshengdongfang were terminated in September 2015. The VIE arrangements PRC laws and regulations currently require any foreign entity that invests in the education business in China to be an educational institution with relevant experience in providing educational services outside of China. The Company’s offshore holding companies are not educational institutions and do not provide educational services outside of China. In addition, in the PRC, foreign ownership of high schools for students in grades ten to twelve is restricted and foreign ownership of primary and middle schools for students in grades one to nine is prohibited. Accordingly, the Company’s offshore holding companies are not allowed to directly own and operate schools in China. The Company conducts substantially all of its education business in China through contractual arrangements with its VIEs, New Oriental China and its schools and subsidiaries and Xuncheng and its subsidiary. Since the operations of New Oriental China and the schools and Xuncheng and its subsidiary are closely interrelated and almost indistinguishable from one another, the risks and rewards associated with their operations are substantially the same. In addition, the Company consolidates New Oriental China, its schools and subsidiaries, Xuncheng and its subsidiary as disclosed. Therefore, the Company aggregates the disclosures related to New Oriental China, New Oriental China’s schools and subsidiaries, and Xuncheng and its subsidiary as variable interest entities and referred to them as “the VIEs” in the Company’s consolidated financial statements. The VIEs hold the requisite licenses and permits necessary to conduct the Company’s education business. In addition, the VIEs hold leases and other assets necessary to operate the Company’s schools and learning centers, employ teachers and generate substantially all of the Company’s revenues. VIE Arrangements between New Oriental China and the Company’s PRC subsidiaries The Company and its wholly owned subsidiaries in China (the “WFOEs”) have entered into the following contractual arrangements with New Oriental China, New Oriental China’s schools and subsidiaries and New Oriental China’s shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receive the economic benefits of the VIE that could be significant to the VIE. Accordingly, the Company is considered the primary beneficiary of the VIE and has consolidated the VIE’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. In making the conclusion that the Company is the primary beneficiary of the VIE, the Company believes the Company’s rights under the terms of the exclusive option agreement provide it with a substantive kick out right. More specifically, the Company believes the terms of the exclusive option agreement are valid, binding and enforceable under PRC laws and regulations currently in effect. The Company also believes that the minimum amount of consideration permitted by the applicable PRC law to exercise the option does not represent a financial barrier or disincentive for the Company to currently exercise its rights under the exclusive option agreement. A simple majority vote of the Company’s board of directors is required to pass a resolution to exercise the Company’s rights under the exclusive option agreement, for which Mr. Michael Minhong Yu (“Mr. Yu”)’s consent is not required. The Company’s rights under the exclusive option agreement give the Company the power to control the shareholder of New Oriental China and thus the power to direct the activities that most significantly impact the schools’ economic performance given that New Oriental China has the power to direct the activities of the schools via its sponsorship interest. In addition, the Company’s rights under the power of attorney also reinforce the Company’s abilities to direct the activities that most significantly impact the VIE’s economic performance. The Company also believes that this ability to exercise control ensures that the VIE will continue to execute and renew service agreements and pay service fees to the Company. By charging service fees in whatever amounts the Company deems fit, and by ensuring that service agreements are executed and renewed indefinitely, the Company has the rights to receive substantially all of the economic benefits from the VIE. Service agreements (i) Trademark license agreements. Pursuant to the trademark license agreement dated May 13, 2006 between the Company as the licensor and New Oriental China as the licensee, the Company has licensed the trademarks to New Oriental China for its use in China. The Company has also allowed New Oriental China to enter into sub-license (ii) New enrollment system development service agreements. Beijing Decision has entered into new enrollment system development service agreements with the schools of New Oriental China, under which Beijing Decision agreed to provide new enrollment system development and regular maintenance services to those schools of New Oriental China for a fee equal to the applicable fee rate multiplied by the number of new student enrollments. These agreements can be renewed by both parties to the agreements. (iii) Other operating service agreements. Pursuant to operating service agreements between certain WFOEs and the schools or the subsidiaries of New Oriental China, the WFOEs have agreed to provide certain operating services to the schools or the subsidiaries of New Oriental China for fees that are calculated based on a percentage, ranging from 2.0% to 6.0%, of respective revenues of each of the schools and subsidiaries. A majority of these agreements provide unlimited two-year (iv) Sale of educational software agreements. Eight WFOEs, namely Beijing Hewstone, Beijing Pioneer, Beijing Smart Wood, Beijing Joy Tend, Beijing Magnificence, Beijing Top, Beijng Shenghe and Beijing Jinghong, entered into agreements whereby the WFOEs sells various self-developed educational software to the schools or subsidiaries of New Oriental China. Except for four agreements that are silent on renewal, these agreements provide unlimited two-year Master exclusive service agreements. 30-day Equity pledge agreement In January 2012, ten former shareholders of New Oriental China completed the transfer, for no consideration, of all of their equity interests in New Oriental China to Century Friendship, a PRC domestic enterprise controlled by the Company’s founder, chairman and chief executive officer, Mr. Yu. Prior to the transfer, Century Friendship had held 53% of the equity interests in New Oriental China while the ten former shareholders of New Oriental China held the remaining equity interests. In connection to the transfer, five new equity pledge agreements dated April 23, 2012 were entered into among New Oriental China, Century Friendship and five WFOEs, whereby Century Friendship has agreed to pledge all of its equity interests in New Oriental China to the WFOEs to secure the VIE’s performance of their obligations under the trademark license agreements, new enrollment system development service agreements, other operating service agreements and sale of educational software agreements. Century Friendship has agreed not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on its equity interests in New Oriental China without the prior written consents of the WFOEs. The terms of the April 2012 equity pledge agreements are substantially the same as the 2006 agreements. In February 2017, as part of our efforts to streamline the corporate structure, the Group removed Shanghai Smart Words as a party to the contractual arrangements with New Oriental China and its schools and subsidiaries and shareholder. The rights and obligations of Shanghai Smart Words under these contractual arrangements have been assumed by Beijing Decision. The April 2012 equity pledge agreements have been amended to reflect the foregoing change while the terms of these agreements remain unchanged. The equity pledges of Century Friendship under the amended agreements have been registered with the Haidian District, Beijing branch of the SAIC. Exclusive option agreement On February 16, 2017, Beijing Decision entered into a new option agreement with Century Friendship and New Oriental China, replacing the previous option agreement dated April 23, 2012. Pursuant to the current option agreement, Century Friendship is obligated to sell to Beijing Decision, and Beijing Decision has an exclusive, irrevocable and unconditional right to purchase from Century Friendship, in its sole discretion, part or of all of Century Friendship’s equity interests in New Oriental China when and to the extent that applicable PRC law permits it to own part or all of the equity interest in New Oriental China. In addition, Beijing Decision has an exclusive option to require Century Friendship to transfer all or part of Century Friendship’s equity interest in New Oriental China to another PRC person or entity designated by Beijing Decision at any time in its discretion. The purchase price to be paid by Beijing Decision will be the minimum amount of consideration permitted by applicable PRC law at the time when such share transfer occurs. Power of Attorney. attorney-in-fact attorney-in-fact VIE Arrangements between Xuncheng and the Company’s subsidiary During the fiscal year ended May 31, 2015, Beijing Chongshengdongfang Network Technology Co., Ltd. (“Chongshengdongfang”), a PRC subsidiary of the Company entered into a series of contractual arrangements (the “Xuncheng VIE Agreements”) with New Oriental China and Xuncheng, a subsidiary of New Oriental China that engages in internet content services as the Internet Content Provider (“ICP”). The Xuncheng VIE Agreements enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of Xuncheng, and (2) receive the economic benefits of Xuncheng that could be significant to Xuncheng. Accordingly, the Company is considered the primary beneficiary of Xuncheng. The terms of Xuncheng VIE Agreements are substantially the same as those signed between New Oriental China and the Company’s PRC subsidiaries. In September 2015, the above contractual arrangements between Chongshengdongfang, New Oriental China and Xuncheng were terminated. The Group continues to consolidate Xuncheng through voting interest held by New Oriental China since September 2015. Risks in relation to the VIE structure The Company believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: • revoke the business and operating licenses of the Company’s PRC subsidiaries and VIEs; • discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiaries and VIEs; • limit the Group’s business expansion in China by way of entering into contractual arrangements; • impose fines or other requirements with which the Company’s PRC subsidiaries and VIEs may not be able to comply; • require the Company or the Company’s PRC subsidiaries or VIEs to restructure the relevant ownership structure or operations; or • restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China. The Company’s ability to conduct its education business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and their respective shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiaries or VIEs. Mr. Yu is the controlling shareholder of Century Friendship, which owns all of the equity interests in New Oriental China, which in turn owns all of the equity interests in Xuncheng, and Mr. Yu is also a beneficial owner of the Company. The interests of Mr. Yu as the beneficial owner of the VIEs may differ from the interests of the Company as a whole, since Mr. Yu is only one of the beneficial shareholders of the company, holding 13.5% of the total common shares outstanding as of May 31, 2017. The Company cannot assure that when conflicts of interest arise, Mr. Yu will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest Mr. Yu may encounter in his capacity as a beneficial owner and director of the VIEs, on the one hand, and as a beneficial owner and director of the Company, on the other hand. The Company believes Mr. Yu will not act contrary to any of the contractual arrangements and the exclusive option agreement provides the Company with a mechanism to remove Mr. Yu as a beneficial shareholder of the VIEs should he act to the detriment of the Company. The Company relies on Mr. Yu, as a director and executive officer of the Company, to fulfill his fiduciary duties and abide by laws of the PRC and Cayman Islands and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and Mr. Yu, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. In addition, the current sole shareholder of the New Oriental China is also a beneficial owner of the Company and therefore has no current interest in seeking to act contrary to the contractual arrangements. However, to further protect the investors’ interest from any risk that the shareholders of the New Oriental China may act contrary to the contractual arrangements, the Company, through Beijing Pioneer, entered into an irrevocable power of attorney with Century Friendship on December 3, 2012, which replaces the powers of attorney executed by Century Friendship on April 23, 2012. Through the power of attorney, Century Friendship entrusted Beijing Pioneer as its proxy to exercise its rights as the shareholder of New Oriental |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and VIEs’ schools and subsidiaries. The Company and its WFOEs have entered into contractual arrangements with the VIEs and its shareholder, which enable the Company to (1) have power to direct activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Company is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. All inter-company transactions and balances have been eliminated upon consolidation. Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include purchase price allocation relating to the business acquired, the valuation allowance for deferred tax assets, economic lives and impairment of property and equipment, impairment of goodwill, impairment of long-term investments, fair value of long-term available-for-sale Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling Where the consideration in an acquisition includes contingent consideration and the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and if recorded as a liability, it is subsequently carried at fair value with changes in fair value reflected in earnings. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. Term deposits Term deposits consist of deposits placed with financial institutions with original maturities of greater than three months and less than one year. Short-term investments Short term investments consist mostly of held-to-maturity held-to-maturity The Group reviews its held-to-maturity Restricted cash Restricted cash represents Renminbi (“RMB”) deposits in bank accounts as deposits for establishing new schools and subsidiaries. Restricted cash is classified as either current or non-current Allowance for doubtful accounts Accounts receivable represents amounts due from corporate customers of the Group’s various schools and subsidiaries. The Group provides allowance for doubtful accounts based on historical collection experience and a review of the current status of accounts receivable and advances to suppliers. Accounts receivable and advances to suppliers are presented net of allowance for doubtful accounts. Changes in the allowance for doubtful accounts were as follows: As of May 31, 2016 2017 US$ US$ Beginning balance 801 408 Charge during the year 235 354 Written-off (628 ) (177 ) Ending balance 408 585 Inventory Inventories of the Group are mainly consisted of books. Inventories are stated at the lower of cost or net realizable value. Land use rights Land use rights are recorded at cost and amortized on a straight-line basis over the remaining term of the land certificate, from 38.5 to 50 years. Property and equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization is calculated on a straight line basis over the following estimated economic lives: Buildings 20-50 Transportation equipment 10 years Furniture and education equipment 5 years Computer equipment and software 3 years Leasehold improvements Shorter of the lease term or estimated economic life Construction in progress The Group constructs certain of its property and equipment. In addition to cost under the construction contracts, interest cost and external costs directly related to the construction of such facilities, including equipment installation and shipping costs, are capitalized. Depreciation is recorded at the time assets are ready for the intended use. Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. The Group did not record impairment losses on long-lived assets during the years ended May 31, 2015, 2016 and 2017. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis (May 31 for the Group) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the stock prices, business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. In order to test goodwill for impairment, the Group first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step two-step The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The Group recognized nil, nil and US$1,682 impairment loss on goodwill during the years ended May 31, 2015, 2016 and 2017. Long-term investments The Group’s long-term investments consist of cost method investments, equity method investments, available-for-sale held-to-maturity (a) Cost Method Investments For investee companies over which the Group does not have significant influence and a controlling interest, the Group carries the investment at cost and recognizes as income any dividend received from distribution of the investee’s earnings. The Group reviews its cost method investments for impairment whenever an event or circumstance indicates that an OTTI has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its cost method investments. An impairment charge is recorded if the cost of an investment exceeds its fair value and such excess is determined to be other-than temporary. The Group estimated the fair value of these investee companies based on the discounted cash flow approach. Factors the Group considers in making such a determination include general market conditions, the duration and the extent to which the fair value of an investment is less than its cost, and the Group’s intent and ability to hold such investment. The Group recorded US$2, nil and nil impairment losses on its cost method investments during the years ended May 31, 2015, 2016 and 2017, respectively. (b) Equity Method Investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. For certain investments, where the Group holds more than 50% equity interest, the Group may only have significant influence but not have control over the investees. Equity method is also used to account for these investments. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimated the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long term growth rate of a company’s business, the estimation of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The Company did not record impairment losses on its equity method investment during the years ended May 31, 2015, 2016 and 2017, respectively. (c) Available-for-sale For investments in investees’ stocks which are determined to be debt securities, the Group accounts for them as long-term available-for-sale held-to-maturity Available-for-sale The Group reviews its investments for OTTI based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees. The Company recorded nil, nil and US$2,338 impairment losses on its available-for-sale (d) Long-term Held-to-maturity The Group’s long-term held-to-maturity investment represents a trust guaranteed by a bank with the maturity of more than one year, which is stated at its amortized cost. As of May 31, 2017, the related balance was all collected. Value added tax ( “ VAT ” ) Pursuant to the PRC tax laws, in case of any product sales, generally the VAT rate is 3% of the gross sales for small scale VAT payer and 17% of the gross sales for general VAT payer. Most of the subsidiaries of the Company are deemed as general VAT payer for the sales of guidance materials and the intercompany sales of self-developed software. For general VAT payer, VAT on sales is calculated at 17% on revenue from product sales and paid after deducting input VAT on purchases. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Group’s consolidated financial statements. On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program were phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in Group’s consolidated financial statements. Since May 2016, in accordance with Cai Shui [2016] No. 68, the non-academic non-academic Revenue recognition Revenue is recognized when persuasive evidence that an arrangement exists, delivery of the product or service has occurred, the selling price is both fixed and determinable and collection is reasonably assured. Revenue is reported net of business taxes, VAT and refunds. Business tax and VAT amounted to US$45,664 and US$52,993 for the years ended May 31, 2015 and 2016, respectively. Subsequent to May 2016, the Group no longer incurred business taxes. The primary sources of the Group’s revenues are as follows: (a) Educational programs and services The educational programs and services consist of language training and test preparation courses, primary and secondary school education and college admission examination retaking training services. Tuition is generally paid in advance and is initially recorded as deferred revenue. Tuition revenue for educational programs and services is recognized proportionately as the instructions are delivered, and is reported net of business taxes, VAT and related surcharges, and tuition refunds. Students are entitled to a short term course trial period which commences on the date the course begins. Tuition refunds are provided to students if they decide within the trial period that they no longer want to take the course. Tuition refunds have been insignificant in the fiscal years ended May 31, 2015, 2016 and 2017, respectively. After the trial period, if a student withdraws from a class, usually no refunds will be provided and any collected but unearned portion of the fee is recognized at that time. The Group also sells online-learning cards primarily to distributors at fixed prices after deducting a pre-determined e-learning e-learning (b) Books and others The Group sells educational books or other educational materials either through its own book stores or websites or through third party distributors. Revenue from sales made through the Group’s book stores is recognized upon sales to customers. Revenue through distributors is recognized once the products are sold to the end customers. Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the shorter of the lease term or estimated economic life. Advertising costs The Group expenses advertising costs as they incurred them. Total advertising expenses were US$38,295, US$39,753 and US$41,498, for the years ended May 31, 2015, 2016 and 2017, respectively, and have been included as part of selling and marketing expenses. Government subsidies The Group recognizes government subsidies as miscellaneous income when they are received because they are not subject to any past or future conditions, there are no performance conditions or conditions of use, and they are not subject to future return. Government subsidies received and recognized as miscellaneous income totaled US$1,230, US$494 and US$1,325, for the years ended May 31, 2015, 2016 and 2017, respectively. Foreign currency translation The Company’s functional and reporting currency is the United States dollars (“U.S. dollars”). The financial records of the Company’s subsidiaries and the VIEs located in the PRC are maintained in its local currency, the RMB which is the functional currency of these entities. The financial records of the Company’s subsidiaries located in Hong Kong are maintained in U.S. dollars, which is the functional currency of these entities. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the reporting currency at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates, and revenues and expenses are translated using the average rate of exchange in effect during the reporting period. Translation adjustments are reported and shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and consolidated statements of comprehensive income. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the consolidated statements of operations. Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents, restricted cash, and term deposits denominated in RMB amounted to US$747,762 and US$762,895 as of May 31, 2016 and 2017, respectively. Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls on is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group determines the transfers between levels are deemed to have occurred at the end of the periods presented. Measured fair value on a recurring basis The Group measured its financial assets and liabilities primarily including available-for-sale As of May 31, 2016 and 2017, the available-for-sale May 31, 2016 Description Quoted Prices in Significant Other Significant Total US$ US$ US$ US$ Available for sales investments: Common Shares 15,945 — — 15,945 Redeemable preferred shares — 42,263 69,873 112,136 Convertible bond — 12,310 — 12,310 Asset management plan and trust — 23,413 — 23,413 Total 15,945 77,986 69,873 163,804 May 31, 2017 Description Quoted Prices in Significant Other Significant Total US$ US$ US$ US$ Available for sales investments: Common Shares 36,406 — — 36,406 Redeemable preferred shares — 30,669 123,029 153,698 Asset management plan and trust — 7,486 — 7,486 Total 36,406 38,155 123,029 197,590 The Company measured the fair value of its investments in common shares using the market approach based on the quoted stock price of its investee in the active market and has classified it as level 1 measurement. The Company measured the fair value of its convertible bond and asset management plan and trust based on the respective principal and expected returns and has classified those as level 2 measurement. Redeemable preferred shares do not have a quoted market rate. For those, the Company measured their fair value based on recent transactions or based on the market approach or income approach when no recent transactions are available. Recent transactions include the purchase price agreed by an independent third party for an investment with similar terms or a recent transaction agreed by the Company and the investee and has been classified as level 2 measurement. When no recent transactions are available, a market approach or income approach will be used by the Company to measure fair value. The market approach takes into consideration a number of factors including market multiple and discount rates from traded companies in the industry and requires the Company to make certain assumptions and estimates regarding industry factors. Specifically, some of the significant unobservable inputs included the investee’s historical earning on sale, discount of lack of marketability, investee’s time to IPO as well as related volatility. The income approach takes into consideration a number of factors including management projection of discounted future cash flow of the investee as well as an appropriate discount rate. The Company has classified those as level 3 measurement. The assumptions are inherently uncertain and subjective. Changes in any unobservable inputs may have a significant impact on the fair values. The Group did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. During the years ended May 31, 2016 and 2017, the Group transferred several redeemable preferred shares from level 2 to level 3 for a total of US$63,881 and US$31,505 respectively as the Company changed its fair value measurement for those investees. Specifically, the Company changed its measurement method from recent transactions to a market approach or income approach described in the previous paragraph to determine the investment’s fair value as no recent transactions were available as of May 31, 2016 and 2017. The following table provides additional information about the reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs (level 3). Available-for-sale US$ Balance at June 1, 2015 — Transfer from level 2 fair value measurements 63,881 Initial recognition 2,844 Unrealized gain 3,148 Balance at May 31, 2016 69,873 Transfer from level 2 fair value measurements 31,505 Initial recognition — Unrealized gain 21,651 Balance at May 31, 2017 123,029 Measured fair value on a nonrecurring basis Goodwill and other intangible assets are measured at fair value on a nonrecurring basis when an impairment is recognized. The Group measured goodwill at fair value on a nonrecurring basis when it is annually evaluated or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group measured acquired intangible assets using the income approach—discounted cash flow method when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group did not recognize any impairment loss related to other intangible assets arising from acquisitions for the years ended May 31, 2015, 2016 and 2017. The fair value of goodwill is determined using discounted cash flows, and an impairment loss will be recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The Group recognized nil, nil and US$1,682 of impairment loss related to goodwill for the years ended May 31, 2015, 2016 and 2017, respectively. Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, term deposits, short-term held-to-maturity available-for-sale held-to-maturity Available-for-sale held-to-maturity held-to-maturity Net income per share Basic net income per share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised into common shares. Common share equivalents are excluded from the computation of the diluted net income per share in years when their effect would be anti-dilutive. Income taxes The Group accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities using enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of operations in the period of change. Deferred tax assets are reduced by a valuation allowance when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. The Group accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Group believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Group recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Comprehensive income Comprehensive income includes net income, unrealized gain or loss on available-for-sale Share-based compensation Share-based payments to employees and directors are measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense net of a forfeiture rate on a straight-line basis over the requisite service period, with a corresponding addition to paid-in non-vested non-constant The amount of compensation expense recognized at any date is at least equal to the portion of the fair value of the awards that are vested as of that date. The estimate of forfeitures is based on historical turnover rate and will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up Concentration of credit risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, term deposits, restricted cash, and accounts receivable. As of May 31, 2017, substantially all of the Group’s cash and cash equivalents, and term deposits were deposited with financial institutions with high-credit ratings and quality. Accounts receivable are typically unsecured and are derived from revenues earned from customers in the PRC. The Group performs periodic credit evaluations and provides an allowance for doubtful accounts to reduce the accounts receivable balance to its net realizable value. The Group did not have any customers constituting 10% or more of the consolidated net revenues and accounts receivable in fiscal years 2015, 2016 and 2017, respectively. Newly adopted accounting pronouncements In February 2015, the Financial Accounting Standards Board (“FASB”) issued the Audit Standards Update (“ASU”) 2015-02, In July 2015, the FASB issued ASU 2015-11, Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued ASU 2014-09 605-35, The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. In August 2015, FASB issued its final standard formally amending the effective date of the new revenue recognition guidance. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The new revenue guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Group plans to adopt the ASU on June 1, 2018, and is in the process of evaluating the impact to its consolidated financial statements. In January 2016, FASB issued ASU 2016-01 not-for-profit The new guidance makes targeted improvements to existing U.S. GAAP by: • Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; • Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; • Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; • Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
May 31, 2017 | |
Business Combinations [Abstract] | |
Business Acquisitions | 3. BUSINESS ACQUISITIONS Acquisition of Qingdao Alice In order to expand its business in kindergarten industry and benefit from the synergistic effect, the Group acquired 100% equity interest in Qingdao Alice on December 1, 2014, for a total consideration of US$12,929, which was fully paid as of May 31, 2015. The acquisition was recorded using the acquisition method of accounting, accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The purchase price allocation described below was based on a valuation analysis provided by an independent appraiser. The purchase price was allocated as at the date of acquisition as follows: US$ Amortization Cash 2,306 Other current assets 644 Property, plant and equipment 89 1-5 years Intangible assets Trademark 1,058 10.1 years Student base 1,998 2.2 years Favorable lease 763 8.7 years Goodwill 7,540 Other current liabilities (514 ) Deferred tax liabilities (955 ) Total 12,929 Acquisition of Ainuoshida In March 2015, the Group invested and paid US$1,129 to obtain 18% equity interest in Ainuoshida to expand the business of its oversea consulting and benefit from the synergistic effect expected from such investment. The investment was initially recognized as available-for-sale The Group recognized an investment gain of US$723 as a result of remeasuring the 18% equity interest immediately to fair value before the business combination. The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The acquisition-date fair value of the equity interest held by the Group immediately prior to the acquisition date was measured at fair value using a discounted cash flow method and taking into account certain factors including the management projection of discounted future cash flow and an appropriate discount rate. The purchase price allocation described below was based on a valuation analysis provided by an independent appraiser. The purchase price was allocated as at the date of acquisition as follows: US$ Amortization Cash 2,499 Other current assets 4,874 Property, plant and equipment 493 1-5 years Intangible assets Trademark 1,708 10 years Student base 1,069 1 year Software 76 3 years Goodwill 5,516 Other current liabilities (6,040 ) Deferred tax liabilities (713 ) Fair value of the 18% equity interest (1,741 ) Noncontrolling interests (3,899 ) Total 3,842 |
Disposal of Subsidiaries
Disposal of Subsidiaries | 12 Months Ended |
May 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal of Subsidiaries | 4. DISPOSAL OF SUBSIDIARIES Disposal of Dianshijingwei In April 2016, the Group sold 51% equity interest in Beijing Dianshijingwei Technololy Co., Ltd (“Dianshijingwei”) to some of Dianshijingwei’s management for a cash consideration of US$2,325. As of the disposal date, Dianshijingwei had accumulated deficit resulting in the Group deriving a gain from the deconsolidation. The disposal gain recognized by the Group was US$3,760 and was recorded in the consolidated statements of operations for the year ended May 31, 2016. Subsequent to this disposal, the Group accounted for its 49% investment in Dianshijingwei as an equity method investment because the Group retained the ability to exercise significant influence. The disposal of Dianshijingwei did not represent a strategic shift and did not have a major effect on the Group’s operation. The disposal gains from the transaction was presented as continuing operation. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
May 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | 5. SHORT-TERM INVESTMENTS Short-term investments consisted of the following: As of May 31, 2016 2017 US$ US$ Held-to-maturity 819,229 1,312,942 Short-term investments consist of various fixed-income financial products purchased from Chinese banks and trusts and are classified as held-to-maturity While these fixed-income financial products are not publicly traded, the Group estimated that their fair value approximate their amortized costs considering their short term maturities and high credit quality. No OTTI loss was recognized for the years ended May 31, 2015, 2016 and 2017, respectively. |
Inventory
Inventory | 12 Months Ended |
May 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | 6. INVENTORY Inventory consisted of the following: As of May 31, 2016 2017 US$ US$ Course materials in schools 5,787 7,419 Publications in bookstores 21,516 24,323 27,303 31,742 Inventory was marked down to the lower of cost or net realizable value, in the amount of US$638 and US$152 for the years ended May 31, 2016 and 2017, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
May 31, 2017 | |
Text Block [Abstract] | |
Prepaid Expenses and Other Current Assets | 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of May 31, 2016 2017 US$ US$ Prepaid rent 33,135 44,746 Advances to suppliers 23,143 29,358 Interest receivable 9,341 14,005 Rental deposit 7,122 8,355 Receivable from BOCI for the proceeds of exercise of options and withholding tax 5,548 — Prepaid advertising fees 3,250 4,235 Staff advances (a) 2,829 2,514 Value added taxes recoverable 2,534 2,305 Deposit of advertising & decoration 1,961 1,411 Receivable of social insurance 1,374 1,651 Prepaid property taxes and other taxes 616 947 Others (b) 8,824 9,870 99,677 119,397 (a) Staff advances were provided to staff for traveling and related use which are expensed as incurred and staff allowance for on-site (b) Others primarily included maintenance fees, other receivables and other miscellaneous prepayments. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
May 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 8. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: As of May 31, 2016 2017 US$ US$ Buildings 146,411 141,477 Transportation equipment 8,553 8,618 Furniture and education equipment 76,492 88,671 Computer equipment and software 40,707 48,385 Leasehold improvements 169,345 216,848 441,508 503,999 Less: accumulated depreciation (209,937 ) (235,853 ) Construction in-process 6,127 14,654 237,698 282,800 Depreciation expense for the years ended May 31, 2015, 2016 and 2017 was US$46,663, US$47,281 and US$53,864 respectively. |
Land Use Rights, Net
Land Use Rights, Net | 12 Months Ended |
May 31, 2017 | |
Text Block [Abstract] | |
Land Use Rights, Net | 9. LAND USE RIGHTS, NET Land use rights consisted of the following: As of May 31, 2016 2017 US$ US$ Land use rights 5,178 5,003 Less: accumulated amortization (1,201 ) (1,307 ) Exchange differences (71 ) (28 ) Land use rights, net 3,906 3,668 Amortization expenses for land use rights for the years ended May 31, 2015, 2016 and 2017 were US$116, US$112 and US$106, respectively. The Group expects to recognize US$106 in amortization expense for each of the next five years and US$3,138 thereafter. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
May 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 10. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: As of May 31, 2016 2017 US$ US$ Costs: Intangible assets with indefinite lives: Trademark 248 241 Intangible assets with finite lives: Trademark 1,293 2,976 Courseware 47 122 Student base 1,978 2,995 Favorable lease 713 689 License 415 415 4,694 7,438 Accumulated amortization: Trademark (383 ) (581 ) Courseware (47 ) (58 ) Student base (1,404 ) (2,455 ) Favorable lease (123 ) (199 ) License (119 ) (140 ) (2,076 ) (3,433 ) Net carrying amount: Intangible assets with indefinite lives: Trademark 248 241 Intangible assets with definite lives: Trademark 910 2,395 Courseware — 64 Student base 574 540 Favorable lease 590 490 License 296 275 2,618 4,005 Amortization expenses for the intangible assets for the years ended May 31, 2015, 2016 and 2017, were US$607, US$1,122 and US$1,419, respectively. As of May 31, 2017, the Group expects to record amortization expenses related to intangible assets US$963, US$400, US$380, US$368 and US$368 for the years ended May 31, 2018, 2019, 2020, 2021, 2022, respectively, and US$1,526 thereafter. |
Goodwill, Net
Goodwill, Net | 12 Months Ended |
May 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Net | 11. GOODWILL, NET As of May 31, 2016 2017 US$ US$ Costs: Beginning balance 11,194 10,545 Acquisition of Ainuoshida — 5,516 Exchange differences (649 ) (296 ) Ending balance 10,545 15,765 Accumulated goodwill impairment loss: Beginning balance — — Impairment of Tongwen — (1,682 ) Ending balance — (1,682 ) Goodwill, net 10,545 14,083 The Company’s goodwill reflects the excess of the consideration paid or transferred including the fair value of contingent consideration over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed by evaluating an initial qualitative assessment of the likelihood of impairment. If this step indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed. The Company acquired Tongwen Gaokao and Tongwen High school (collectively “Tongwen”) in September 2008. During the year ended May 31, 2017, the Group performed its goodwill impairment testing and determined there was an impairment. As a result, the entire balance of goodwill associated with Tongwen and amounting to US$1,682 was written off. |
Long Term Investments
Long Term Investments | 12 Months Ended |
May 31, 2017 | |
Investments Schedule [Abstract] | |
Long Term Investments | 12. LONG-TERM INVESTMENTS Long term investments consisted of the following: As of May 31, 2016 2017 US$ US$ Cost method investments: 1,460 8,132 Equity method investments: Beijing Dongfangheli Investment and Development Ltd. (“Dongfangheli”) (a) 3,451 2,851 Juesheng Education Group Ltd. (“Juesheng.com”) (b) 3,249 2,881 Suzhou Qingrui Education & Technology Co., Ltd. (“Kouyu100”) (c) 3,261 3,436 Other equity method investments (j) 3,638 2,369 Available-for-sale Shanghai Golden Education & Training Co. Ltd.(“Golden Finance”) (d) 34,242 44,809 Shanghai ALO7 Technology Co., Ltd.(“Alo7.com”) (e) 29,639 17,370 AVIC Trust Tianqi No.556 (“Trust 556”) (f) 16,037 — Tarena International, Inc. (“Tarena”) (g) 15,945 25,695 Beijing ShangJiaChongYe Education &Technology Co. Ltd.(“Shangjiachongye”) (h) 12,310 32,644 Beijing ROBOROBO Technology Co. Ltd. (“ROBOROBO”) (i) 9,999 — Beijing Shengtong Printing Co. Ltd (“Shengtong”) (i) — 10,711 Other available-for-sale 45,632 66,361 178,863 217,259 (a) In August 2014, the Group invested US$4,034 to acquire 50% equity interest in Dongfangheli, a company concentrating on investment in educational research and development programs and software consulting services. The Group used the equity method to account for the investment as the Group has the ability to exercise significant influence but does not have control over the investee. (b) In August 2014 and May 2015, the Group invested US$3,006 and US$501 respectively in Juesheng.com, a company engaging in providing international educational products search engine service, for 11.9% equity interests. These investments were classified as available-for-sale (c) In December 2014, the Group invested US$3,472 in Kouyu100, a company applying cutting edge psychoacoustic technology to spoken language training and correcting the pronunciation of a student like a real tutor, for 7% equity interest. The investment was classified as available-for-sale (d) In April and November 2015, the Group invested US$3,398 and US$11,437 respectively in Golden Finance, a company focusing on training programs associated with finance and business management, for 19.5% equity interest. Unrealized holding gains of nil, US$19,407 and US$10,567 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively. (e) On March 5, 2012, the Group acquired a convertible promissory from Alo7.com for US$1,000, which entitled the Group to automatically convert the note into equity security. On July 1, 2012, the Group converted the US$1,000 promissory note into convertible redeemable preferred shares and warrants issued by Alo7.com, for 3.4% equity ownership interest in Alo7.com on an as-converted In March, June and September 2014, the Group further invested US$2,576, US$300 and US$10,000 into Alo7.com. As of May 31, 2017, the Company had 17.2% equity interests in Alo7.com. Unrealized holding gains of US$13,428, US$1,704 and loss of US$8,678 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively. (f) In October 2015, the Group invested US$15,654 in a two-year available-for-sale (g) In March 2014, the Group invested US$13,500 in Tarena, which is a service provider of IT professional education in China, for around 3% equity interest. Unrealized holding gain of US$3,495, loss of US$1,005 and gain of US$9,750 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively. (h) In January 2016, the Group invested US$12,310 to acquire convertible bond issued by Shangjiachongye, which focuses on online education specific to vocational qualification training. In July 2016, the Group converted all of the convertible bonds into redeemable preferred shares of Shangjiachongye for a 4.9% equity interest. In the meantime, the Group additionally invested US$12,205 into redeemable preferred shares for another 4.9% equity interest. Unrealized holding gains of nil and US$8,129 were reported in other comprehensive income for the years ended May 31, 2016 and 2017, respectively. (i) In April 2015, the Group acquired 18% equity interest in ROBOROBO for a cash consideration of US$4,356, a company applying various robots build training courses for kids with different ages. Unrealized holding gains of nil and US$5,643 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively. In February 2017, the Group disposed the shares in ROBOROBO to exchange for shares newly issued by Shengtong which is an A-share available-for-sale (j) As to the other investments, they represent several insignificant investments either classified as equity method investments or available-for-sale |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
May 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: As of May 31, 2016 2017 US$ US$ Accrued payroll 131,151 157,167 Payable for purchase of property and equipment 11,953 21,445 Amounts reimbursable to employees (a) 8,294 11,022 Individual taxes withholding 8,186 6,454 Refundable fees received from students (b) 5,755 8,687 Business taxes payable 5,259 — Value-added taxes payable 6,506 9,516 Accrued advertising fees 6,443 7,798 Rent payable 6,285 7,532 Welfare payable 6,004 6,102 Royalty fees payable (c) 3,637 4,011 Refundable deposit (d) 3,161 5,382 Accrued professional service fees 2,352 1,486 Other taxes payable 1,240 1,604 Others (e) 10,818 12,494 Total 217,044 260,700 (a) Amounts reimbursable to employees included traveling and the related expenses incurred by employees on behalf of the Group. (b) Refundable fees received from students represent (1) the miscellaneous expenses other than tuition fee received from students which will be paid out on behalf of students; and (2) tuition fees refundable to students for withdrawn classes. (c) Royalty fees payable related to payments to content providers for on-line (d) Refundable deposits represent student deposits for dormitory or other fees that will be refunded upon graduation and student security deposits refunded upon completion of the study tour. (e) Others primarily included transportation expenses, utility fees, property management fees, and other miscellaneous expenses payable. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
May 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 14. SHARE-BASED COMPENSATION On January 20, 2006, the Company adopted 2006 Share Incentive Plan (“2006 Share Incentive Plan”), under which the Company may grant share options to purchase up to 8,000,000 common shares of the Group, to its employees, directors and consultants. The number of common shares available for grant under the 2006 Share Incentive Plan may be increased annually by (i) an additional 5,000,000 shares on January 1, 2007, (ii) an additional 5,000,000 shares on January 1, 2008, and (iii) an annual increase in common shares to be added on the first business day of each calendar year beginning in 2009 equal to the lesser of (x) 3,000,000 shares, (y) two percent (2%) of total common shares outstanding as of such date, or (z) a lesser number of shares as determined by the Group’s management. In the event the aggregate number of shares that may be issued in any given year under all share compensation plans has reached the maximum number of shares allowed in that year, the Company may grant additional awards up to 2,000,000 shares, or extra shares. The number of shares granted in excess of the annual maximum in any given year will result in the reduction of the maximum shares available for grant in the next year. The 2006 Share Incentive Plan has an effective period of 10 years. As of May 31, 2017, the Company has transferred 16,000,000 common shares to its depositary bank for the issuance to employees and non-employees non-employees The Company recorded total share-based compensation expense of US$15,689, US$16,810 and US$20,287 during the years ended May 31, 2015, 2016 and 2017, respectively. Share options The following table summarizes information regarding the share options granted: Share options Shares granted Grant-date Exercise US$ US$ Grant date: February 28, 2006 7,099,500 1.00 2.02 July 21, 2006 1,620,000 1.15 2.38 September 7, 2006 100,000 2.38 3.75 March 5, 2007 3,946,500 4.09 8.75 January 17, 2012 3,060,000 10.33 12.19 Total 15,826,000 The exercise price of share options is at least 100% of the fair value of the common shares on the date of the grant. The term of a share option is up to ten years from the date of grant. During the year ended May 31, 2016, the Group extended the terms of share options granted on February 28, 2006 for another three years. The extension did not have a material impact on the Group’s consolidated financial statements. The share options generally vest over three years at six-month In January 2016, the Company’s 2006 Share Incentive Plan expired. However, the expiration of the plan did not affect the exercise right of options granted prior to such expiration. The Company adopted the 2016 Share Incentive Plan (“2016 Share Incentive Plan”) in January 2016 to continue to provide incentives to employees, directors and consultants after the termination of 2006 Share Incentive Plan. The maximum aggregate number of shares which may be issued pursuant to all awards (including options) granted under the 2016 Share Incentive Plan is 10,000,000 shares. As of May 31, 2017, no share options had been granted under 2016 Share Incentive Plan. As of May 31, 2017, 11,285,510 common shares out of the 16,000,000 common shares held by the depositary bank had been issued to employees and non-employees non-employees A summary of share options activity under 2006 Share Incentive Plan for year ended May 31, 2017 is as follows: Weighted Weighted- Remaining Aggregated US$ years US$ Options outstanding at May 31, 2016 78,337 6.13 0.58 2,829 Granted — — Exercised 48,047 5.37 Forfeited 23,938 8.75 Options outstanding at May 31, 2017 6,352 2.02 1.58 442 Options vested and expect to vest at May 31, 2017 6,352 2.02 1.58 442 Options exercisable at May 31, 2017 6,352 2.02 1.58 442 The total intrinsic value of share options exercised during the years ended May 31, 2015, 2016 and 2017 were US$5,249, US$4,802and US$2,133, respectively. No new share options were granted during the years ended May 31, 2015, 2016 and 2017, respectively. As of May 31, 2017, no unrecognized compensation expense related to share options. NES The following table summarizes information regarding NES granted in fiscal year 2015, 2016 and 2017: NES Grant-date Fair Value and US$ Grant date: July 23, 2014 209,650 21.01 September 29, 2014 24,020 22.32 February 5, 2015 600,000 18.52 July 9, 2015 486,330 22.69 October 19, 2015 60,000 22.45 November 16, 2016 436,016 47.19 Total 1,816,016 In July 2014, the Company granted 209,650 NES to employees which is eligible to vest on May 31, 2015. In September 2014, the Company granted 24,020 NES to employees which is eligible to vest on May 31, 2015. In February 2015, the Company granted 600,000 NES to employees which is eligible to vest 240,000, 180,000 and 180,000 on December 31, 2015, 2016 and 2017, respectively. In July 2015, the Company granted 486,330 NES to employees which is eligible to vest on May 31, 2016. In October 2015, the Company granted 60,000 NES to employees which is eligible to vest 20,000, 20,000 and 20,000 on May 31, 2016, December 31, 2016 and 2017, respectively. In November 2016, the Company granted 436,016 NES to employees which is eligible to vest on June 30, 2017. As of May 31, 2017, 4,714,490 common shares out of the 16,000,000 common shares held by the depositary bank had been issued to employees and non-employees non-employees A summary of NES activities under 2006 Share Incentive Plan for the year ended May 31, 2017 is as follows: Number Weighted- US$ NES outstanding at May 31, 2016 400,000 18.91 Granted 436,016 47.19 Vested (200,000 ) 18.91 Forfeited (4,050 ) 47.19 NES outstanding at May 31, 2017 631,966 38.24 NES vested and expect to vest at May 31, 2017 631,966 The total fair value of shares vested during the year ended May 31, 2017 was US$3,783. The weighted average grant date fair value of NES granted during the years ended May 31, 2015, 2016 and 2017 was US$19.26, US$22.66 and US$47.19 respectively. As of May 31, 2017, total unrecognized compensation expense for NES of US$3,486 is expected to be recognized over a weighted average period of 0.2 years. |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. INCOME TAXES Significant components of provision for income taxes for the years ended May 31, 2015, 2016 and 2017 were as follows: Years ended May 31, 2015 2016 2017 US$ US$ US$ Current: PRC 31,552 39,467 51,142 Deferred: PRC (5,331 ) (1,936 ) (518 ) Total provision for income taxes 26,221 37,531 50,624 The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. The Company’s subsidiaries Smart Shine, Winner Park and Elite Concept are located in Hong Kong and are subject to an income tax rate of 16.5% for taxable income earned in Hong Kong. Elite Concept and Smart Shine received a special dividend of US$75,898 and nil during the years ended May 31, 2016 and 2017. Withholding taxes of US$7,590 and nil in connection with the dividends were fully paid during the years ended May 31, 2016 and 2017, respectively. The Company’s PRC subsidiaries and the VIEs are subject to the 25% standard enterprise income tax except for those accepted as deemed profit method enterprises, or qualified for small-scale enterprises, or granted preferential tax treatment. Enterprises that qualify as a high and new technology enterprise (“HNTE”) are subject to a tax rate of 15%. Beijing Decision, Beijing Hewstone, Beijing Pioneer and Xuncheng continued to qualify as HNTE and were subject to a tax rate of 15% during the years ended May 31, 2015, 2016 and 2017. Beijing Smart Wood qualified as HNTE and could enjoy a tax rate of 15% since January 2016. Enterprises that qualify as the “newly established software enterprise” (“NESE”) are exempt from Enterprise Income Tax (“EIT”) for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years. Beijing Smart Wood, Beijing Right Time, Beijing Joy Tend, Beijing Top, Beijing Shenghe, Beijing Magnificence and Beijing Jinghong were qualified as NESE and enjoyed the EIT tax benefit that began from January 2012, January 2013, January 2013, January 2014, January 2014, January 2015 and January 2017, respectively. Beijing Haidian School was not required by the governing tax bureau to pay any EIT since its establishment through May 31, 2017. If Beijing Haidian School is required to pay EIT in future, this could have material impact to the Group’s consolidated financial statements. However, the Group believes that it is more likely than not that any change to the tax treatment of Beijing Haidian School shall be prospectively applied. Significant components of the Group’s deferred tax assets and liabilities were as follows: As of May 31, 2016 2017 US$ US$ Deferred tax assets, non-current Allowance doubtful accounts 252 2,017 Accrued expenses 18,427 21,893 Deferred revenue for incentive plan 2,376 233 Net operating loss carry-forward 6,910 8,696 Total deferred tax assets, non-current 27,965 32,839 Less: valuation allowance (3,624 ) (3,981 ) Net, deferred tax assets, non-current 24,341 28,858 Deferred tax liabilities, non-current Acquired of non-current 1,982 2,220 Total deferred tax liabilities, non-current 1,982 2,220 The Group does not file combined or consolidated tax returns, therefore, losses from individual subsidiaries or the VIEs may not be used to offset other subsidiaries’ earnings within the Group. The Group determined the valuation allowance on an entity by entity basis. The valuation allowance, which is primarily related to entities with net operating loss carry-forwards for which the Company does not believe it will ultimately be realized, was US$3,981 as of May 31, 2017, an increase of US$357 from US$3,624 as of May 31, 2016. As of the year ended May 31, 2017, the Group had net operating loss carried-forwards of US$36,608 from the Company’s PRC subsidiaries and VIE, which will expire on various dates from May 31, 2018 to May 31, 2022. A reconciliation of the effective tax rates from the 25% statutory tax rates was as follows for the years ended May 31, 2015, 2016 and 2017: Years ended May 31, 2015 2016 2017 % % % Statutory tax rate 25.00 25.00 25.00 Effect of expenses not deductible for tax purposes 4.91 4.57 2.03 Effect of tax holiday (20.82 ) (18.05 ) (13.41 ) Changes in valuation allowance (0.59 ) 0.25 0.11 Effect of dividend withholding tax 3.39 2.27 1.58 Total provision for income taxes 11.89 14.04 15.31 If the tax holidays granted to the WFOEs and current tax treatments on certain schools and subsidiaries of New Oriental China were not available, the Group’s income tax expense would have increased by US$47,080, US$47,559 and US$42,895, the basic net income per share attributable to the Company would decrease by US$0.30 , US$0.30 and US$0.27 for the years ended May 31, 2015, 2016 and 2017, respectively, and the diluted net income per share attributable to the Company would decrease by US$0.30, US$0.30 and US$0.27 for the years ended May 31, 2015, 2016 and 2017, respectively. Under the New Income Tax Law effective from January 1, 2008, the rules for determining whether an entity is resident in the PRC for tax purposes have changed and the determination of residence depends among other things on the “place of actual management”. If the Group, or its non-PRC If the Company were to be a non-resident Aggregate undistributed earnings of the Company’s PRC subsidiaries and VIEs that are available for distribution was US$1,133,217 and US$1,457,705 as of May 31, 2016 and 2017, respectively. Upon distribution of such earnings, the Company will be subject to PRC EIT taxes, the amount of which is impractical to estimate. The Company did not record any tax on any of the aforementioned undistributed earnings because the relevant subsidiaries and VIEs do not intend to declare dividends and the Company intends to permanently reinvest it within the PRC. Additionally, no deferred tax liability was recorded for taxable temporary differences attributable to the undistributed earnings because the Company believes the undistributed earnings can be distributed in a manner that would not be subject to income tax. The Group did not identify any significant unrecognized tax benefits for the years ended May 31, 2015, 2016 and 2017, respectively. The Group did not incur any significant interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months. The Group has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods. According to the PRC Tax Administration and Collection Law, the tax authority may require the taxpayer or the withholding agent to make delinquent tax payment within three years if the underpayment of taxes is resulted from the tax authority’s act or error. No late payment surcharge will be assessed under such circumstances. The statute of limitation will be three years if the underpayment of taxes is due to the computational errors made by the taxpayer or the withholding agent. Late payment surcharge will be assessed in such case. The statute of limitation will be extended to five years under special circumstances which are not clearly defined (but an underpayment of tax liability exceeding US$16 (RMB0.1 million) is specifically listed as a “special circumstance”). The statute of limitation for transfer pricing related issue is ten years. There is no statute of limitation in the case of tax evasion. Therefore, the Group’s PRC domiciled entities are subject to examination by the PRC tax authorities based on the above. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
May 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 16. NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share for the periods indicated: Years ended May 31, 2015 2016 2017 US$ US$ US$ Numerator used in basic and diluted net income per share: Net income attributable to New Oriental Education &Technology Group Inc. 193,013 224,884 274,457 Net income available for future distribution 193,013 224,884 274,457 Shares (denominator): Weighted average common shares outstanding used in computing basic net income 156,438,606 156,782,439 157,551,320 Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method 863,568 609,247 435,074 Weighted average common shares outstanding used in computing diluted net income per share 157,302,174 157,391,686 157,986,394 Net income per share - Basic 1.23 1.43 1.74 - Diluted 1.23 1.43 1.74 The weighted average of 1,940,781, 1,596,948 and 828,067 treasury shares have been excluded in computing basic net income per share for the years ended May 31, 2015, 2016 and 2017, respectively. There was no employee stock options excluded from the dilutive share calculation for the years ended May 31, 2015, 2016 and 2017 due to anti-dilutive effects. |
Related-Parties Transactions
Related-Parties Transactions | 12 Months Ended |
May 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Parties Transactions | 17. RELATED-PARTIES TRANSACTIONS The Group had the following balances and transaction with related parties: Balances: Amounts due from non-current Notes Relationship 2016 2017 US$ US$ Metropolis Holding China Limited (1) Company controlled by 1,741 1,064 MaxEn Joint Venture — 684 1,741 1,748 Amounts due from Amounts due to Notes Relationship 2016 2017 2016 2017 US$ US$ US$ US$ Metropolis Holding China Limited (1) Company controlled by 637 1,895 — — MaxEn Joint Venture 812 — 13 12 Beijing Haiwei Career Services Co., Ltd (“Haiwei Career”) (2) Joint Venture 1,553 3,965 — — Dianshijingwei (3) Long-term investee 1,520 — — — Others (4) 17 88 29 36 Total 4,539 5,948 42 48 Transactions: Rental expense 2015 2016 2017 US$ US$ US$ Metropolis Holding China Limited (1) Company controlled by the 5,298 7,139 6,790 Loan to related parties 2015 2016 2017 US$ US$ US$ Haiwei Career (2) Joint Venture — 1,520 3,965 Beijing Weixuemingri Network Technology Co., Ltd. (“Weixuemingri”) (5) Joint Venture — 998 1,733 Great Thanks Holdings Limited Company established — — 1,450 Total — 2,518 7,148 Revenue 2015 2016 2017 US$ US$ US$ MaxEn Joint Venture — 177 — Beijing Tongban Education & Technology Co., Ltd (“Tongban”) Long-term investee — 3 12 STEMedu.cn Long-term investee — 11 60 Goldern Finance Long-term investee — — 18 Total — 191 90 Transactions: Cost 2015 2016 2017 US$ US$ US$ STEMedu.cn Long-term investee — 30 23 (1) Since April 2010, the Group began renting a large portion of a building owned by Metropolis Holding China Limited for office space. In March 2012, Metropolis Holding China Limited was acquired by a company wholly -owned by Mr. Yu, the Group’s executive chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2017, the current and non-current (2) In October 2014, Haiwei Career became a joint venture of the Group. As a result, Haiwei Career became a related party of the Group. As of May 31, 2017, the amount due from Haiwei Career was US$3,965, which represented loans from the Group to Haiwei Career with non-interest (3) As of May 31, 2016, the amount due from Dianshijingwei represented the non-interest (4) As of May 31, 2017, the balance in “others” included the current receivables from long-term investees of Tongban, Goldern Finance and etc. (5) As of May 31, 2017, the amount due from Weixue Mingri represented the non-interest |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
May 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. COMMITMENTS AND CONTINGENCIES Operating leases The Group leases offices, classroom and warehouse facilities under operating leases. The terms of substantially all of these leases are ten years or less. Future minimum lease payments under non-cancelable US$ Years ended May 31: 2018 204,996 2019 185,059 2020 157,333 2021 123,894 2022 83,329 Thereafter 88,611 843,222 Rent expense for the years ended May 31, 2015, 2016 and 2017 related to all cancelable and non-cancelable Capital commitments As of May 31, 2017, future minimum capital commitments under non-cancelable US$ Capital commitment for the purchase of property and equipment 3,359 Capital commitment for leasehold improvements 16,338 Capital commitment for investments 10,064 29,761 Contingent liabilities The Group has been named in a number of lawsuits arising in its ordinary course of business. Although the outcome of those lawsuits are uncertain, the Group does not believe the possibility of loss is probable. The Group is unable to estimate a range of loss, if any, that could result if there would be an adverse decision, as such, and the Group has not accrued any liabilities. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
May 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 19. NONCONTROLLING INTERESTS Koolearn Corporation Xuncheng New Jinzhou School Dongfangyoubo Ainuoshida Total US$ US$ US$ US$ US$ US$ US$ Balance as of May 31, 2015 3,458 — 38 — — — 3,496 Capital injection from noncontrolling interests shareholders — 28,737 — 182 — — 28,919 Capital repurchase from noncontrolling interests shareholders (3,497 ) — — — — — (3,497 ) Unrealized gain on available-for-sale — 999 — — — — 999 Foreign currency translation adjustment attributed to noncontrolling interest shareholders — (269 ) (2 ) — — — (271 ) Net income (loss) attributed to noncontrolling interests shareholders 39 423 3 (21 ) — — 444 Balance as of May 31, 2016 — 29,890 39 161 — — 30,090 Capital injections from noncontrolling interests shareholders — 3,348 — — 576 — 3,924 Addition of noncontrolling interests in connection with acquisition — — — — — 3,909 3,909 Unrealized gain on available-for-sale — (23 ) — — — — (23 ) Foreign currency translation adjustment attributed to noncontrolling interests shareholders — (1,118 ) (2 ) (4 ) 2 13 (1,109 ) Net income (loss) attributed to noncontrolling interests shareholders — 4,454 (1 ) (176 ) (254 ) (1,684 ) 2,339 Balance as of May 31, 2017 — 36,551 36 (19 ) 324 2,238 39,130 The schedule below discloses the effects of changes in the Company’s ownership interest on the Company’s equity: Year Ended May 31, 2016 2017 US$ US$ Net income attribute to New Oriental Education & Technology Group Inc. 224,884 274,457 Increase in the Group’s additional paid-in — 138 Increase in the Group’s additional paid-in 39,579 4,733 Decrease in the Group’s additional paid-in — (5,412 ) Increase in the Group’s additional paid-in 5,704 Changes from net income attributable to New Oriental Education & Technology Group Inc. shareholders and transfers from/to noncontrolling interests 264,463 279,620 (1) In February 2015, Koolearn Corporation issued 5,000,000 ordinary shares to certain employees and received the cash consideration of US$3,752. As the Company still retained a controlling interest in Koolearn Corporation, the disposal was accounted as an equity transaction in the Company’s consolidated financial statements and the Company recognized a noncontrolling interest representing the 5.9% equity interest over Koolearn Corporation as of May 31, 2015. In September 2015, the Group repurchased all these shares from the employees at the original purchase price per share. As the Group retained control over Koolearn before and after the repurchase of the 5.9% interest, the acquisition of this additional equity interest was accounted as an equity transaction in the Company’s consolidated financial statements. (2) In November 2015, the Group sold a 21% ownership of Xuncheng to seven limited partnership entities (“LPs”) representing the employees of the Group. In April 2016, another 12.5% ownership of Xuncheng was sold to Lin Zhi Tencent Technology Co., Ltd an affiliate of Tencent Holdings Limited. All the cash consideration was fully paid by the other investors as of May 31, 2016. In June 2016, the Group further sold 1.7% ownership of Xuncheng to 8 market makers. In December 2016, the Group repurchased 1.3% from 6 market makers aforementioned and sold it to another 4 market makers again in May 2017. As of May 31, 2017, the equity interest owned by the Group in Xuncheng was diluted to 68%. (3) In February 2015, New Road which provides travel agent service was established. The Company and another investor have 51% and 49% equity interest, respectively. The cash consideration was fully paid by the other investor as of May 31, 2015. (4) In April 2016, Jinzhou School which provides language training services was established. The Company and another investor have 60% and 40% equity interest, respectively. The cash consideration was fully paid by the other investor as of May 31, 2016. (5) In June 2016, Dongfangyouba which provides live broadcast lesson service, was established. The Company and another investor have 51% and 49% equity interest, respectively. The cash consideration was fully paid by the other investor as of May 31, 2017. (6) In December 2016, the Group purchased an additional 33% of Ainuoshida resulting in the Group controlling Ainuoshida through 51% ownership. See Note 3 for additional details. |
Segment Information
Segment Information | 12 Months Ended |
May 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 20. SEGMENT INFORMATION The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Group. During the year ended May 31, 2015, the Group identified six operating segments, including language training and test preparation, primary and secondary school education, online education, content development and distribution, pre-school pre-school pre-school The Group primarily operates in the PRC and substantially all of the Group’s long-lived assets are located in the PRC. The Group’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, operating costs and expenses, and operating income. Net revenues, operating costs and expenses, operating income, and total assets by segment were as follows: For the year ended May 31, 2015 Language Primary and training and test secondary preparation courses education Others Consolidated US$ US$ US$ US$ Net revenues 1,040,380 26,735 179,651 1,246,766 Operating costs and expenses: Cost of revenues (442,994 ) (9,083 ) (74,243 ) (526,320 ) Selling and marketing (122,697 ) (1,039 ) (42,540 ) (166,276 ) General and administrative (245,315 ) (10,068 ) (49,387 ) (304,770 ) Unallocated corporate expenses — — — (95,871 ) Total operating costs and expenses (811,006 ) (20,190 ) (166,170 ) (1,093,237 ) Operating income 229,374 6,545 13,481 153,529 Segment assets 937,020 75,046 299,442 1,311,508 Unallocated corporate assets — — — 640,029 Total assets 937,020 75,046 299,442 1,951,537 For the year ended May 31, 2016 Language Primary and training and test secondary preparation courses education Others Consolidated US$ US$ US$ US$ Net revenues 1,238,572 30,011 209,765 1,478,348 Operating costs and expenses: Cost of revenues (516,370 ) (9,812 ) (88,182 ) (614,364 ) Selling and marketing (125,815 ) (744 ) (48,255 ) (174,814 ) General and administrative (296,686 ) (12,558 ) (55,937 ) (365,181 ) Unallocated corporate expenses — — — (128,912 ) Total operating costs and expenses (938,871 ) (23,114 ) (192,374 ) (1,283,271 ) Gain on disposal of subsidiaries — — 3,760 3,760 Operating income 299,701 6,897 21,151 198,837 Segment assets 1,120,580 78,556 411,744 1,610,880 Unallocated corporate assets — — — 743,954 Total assets 1,120,580 78,556 411,744 2,354,834 For the year ended May 31, 2017 Language Primary and training and test secondary preparation courses education Others Consolidated US$ US$ US$ US$ Net revenues 1,510,497 30,782 258,230 1,799,509 Operating costs and expenses: Cost of revenues (623,364 ) (10,465 ) (115,757 ) (749,586 ) Selling and marketing (146,544 ) (1,347 ) (60,572 ) (208,463 ) General and administrative (363,949 ) (11,317 ) (63,406 ) (438,672 ) Unallocated corporate expenses — — — (140,639 ) Total operating costs and expenses (1,133,857 ) (23,129 ) (239,735 ) (1,537,360 ) Operating income 376,640 7,653 18,495 262,149 Segment assets 1,361,261 79,655 527,300 1,968,216 Unallocated corporate assets — — — 956,763 Total assets 1,361,261 79,655 527,300 2,924,979 |
Mainland China Contribution Pla
Mainland China Contribution Plan | 12 Months Ended |
May 31, 2017 | |
Text Block [Abstract] | |
Mainland China Contribution Plan | 21. MAINLAND CHINA CONTRIBUTION PLAN The Group’s full time employees in the PRC participate in a government-mandated multiemployer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. The total contributions for such employee benefits were US$61,448, US$71,434 and US$89,709 for the years ended May 31, 2015, 2016 and, 2017, respectively. |
Statutory Reserve
Statutory Reserve | 12 Months Ended |
May 31, 2017 | |
Text Block [Abstract] | |
Statutory Reserve | 22. STATUTORY RESERVE Prior to payment of dividends, pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company’s subsidiaries and VIEs in the PRC must make appropriations from after-tax non-distributable Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax year-end PRC laws and regulations require private schools that require reasonable returns to make annual appropriations of 25% of after-tax These reserves are included as statutory reserves in the consolidated statements of changes in equity and comprehensive income. The Group allocated US$23,742, US$31,853 and US$ 35,278 to statutory reserves during the years ended May 31, 2015, 2016 and 2017, respectively. The statutory reserves cannot be transferred to the Company in the form of loans or advances and are not distributable as cash dividends except in the event of liquidation. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
May 31, 2017 | |
Receivables [Abstract] | |
Restricted Net Assets | 23. RESTRICTED NET ASSETS Relevant PRC laws and regulations restrict the WFOEs and VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserves and their share capital, to the Company in the form of loans, advances or cash dividends. The balance of restricted net assets was US$358,956 and US$488,560, of which US$292,542 and US$425,927 was attributed to the paid in capital, additional paid-in paid-in |
Subsequent Events
Subsequent Events | 12 Months Ended |
May 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. SUBSEQUENT EVENTS On July 26, 2017, the Group’s board of directors has declared a special cash dividend in the amount of US$0.45 per ADS/common share. The cash dividend will be paid on October 6, 2017 to shareholders of record at the close of business on September 6, 2017. The ex-dividend |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent Company | 12 Months Ended |
May 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Parent Company | Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company Balance Sheets (In thousands, except share and share data) As of May 31, 2016 2017 US$ US$ ASSETS Current assets: Cash and cash equivalents 11,984 11,472 Term deposit 10,000 10,000 Prepaid expense and other current assets 5,900 210 Amounts due from related parties 16,758 — Total current assets 44,642 21,682 Amounts due from related parties — 56,965 Long-term investments 96,498 120,260 Investments in subsidiaries and VIEs 1,353,090 1,569,358 Total assets 1,494,230 1,768,265 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other current liabilities 6,016 3,675 Amounts due to related parties 83,642 83,642 Total current liabilities 89,658 87,317 Equity: Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2016 and 2017; 158,379,387 shares issued as of May 31, 2016 and 2017; 157,439,397 and 157,687,444 shares outstanding as of May 31, 2016 and 2017, respectively) 1,584 1,584 Treasury stock (9 ) (7 ) Additional paid-in 223,422 249,126 Retained earnings 1,116,627 1,391,084 Accumulated other comprehensive income 62,948 39,161 Total shareholders’ equity 1,404,572 1,680,948 Total liabilities and equity 1,494,230 1,768,265 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED MAY 31, 2015, 2016 AND 2017 (In thousands, except share and per share data, or otherwise noted) Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company Statements of Operations (In thousands) Years ended May 31, 2015 2016 2017 US$ US$ US$ Operating costs and expenses: General and administrative 12,963 16,732 18,236 Total operating costs and expenses 12,963 16,732 18,236 Operating loss (12,963 ) (16,732 ) (18,236 ) Interest income 2 1 122 Equity in earnings of subsidiaries and VIEs 205,974 241,615 292,571 Net income 193,013 224,884 274,457 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED MAY 31, 2015, 2016 AND 2017 (In thousands, except share and per share data, or otherwise noted) Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company Statements of Comprehensive Income (In thousands) Years ended May 31, 2015 2016 2017 US$ US$ US$ Net income 193,013 224,884 274,457 Other comprehensive income, net of tax Foreign currency translation adjustment 12,006 (72,193 ) (46,331 ) Unrealized gain on available-for-sale 21,940 35,636 22,544 Other comprehensive income/ (loss) 33,946 (36,557 ) (23,787 ) Comprehensive income attributable to New Oriental Education & Technology Group Inc. 226,959 188,327 250,670 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED MAY 31, 2015, 2016 AND 2017 (In thousands, except share and per share data, or otherwise noted) Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company Statements of Changes in Equity (In thousands, except share data) Common shares Additional paid-in Treasury Retained Accumulated Total Unrestricted shares Amount US$ US$ US$ US$ US$ US$ Balance at June 1, 2014 157,758,666 1,584 174,009 (6 ) 784,612 65,559 1,025,758 Reissuance of Treasury stock for the exercises of employee share options 953,514 — 11,353 9 — — 11,362 Reissuance of Treasury stock for Non-vested 575,432 — (6 ) 6 — — — Share based compensation expense — — 15,689 — — — 15,689 Share repurchase (2,800,849 ) — (59,392 ) (28 ) — — (59,420 ) Net income — — — — 193,013 — 193,013 Foreign currency translation adjustment — — — — — 12,006 12,006 Unrealized gain on available-for-sale — — — — — 21,940 21,940 Balance at May 31, 2015 156,486,763 1,584 141,653 (19 ) 977,625 99,505 1,220,348 Reissuance of Treasury stock for the exercises of employee share options 240,304 — 2,428 3 — — 2,431 Reissuance of Treasury stock for Non-vested 712,330 — (7 ) 7 — — — Share based compensation expense — — 16,810 — — — 16,810 Dividend declared — — — — (62,668 ) — (62,668 ) Net income — — — — 224,884 — 224,884 Capital injection of noncontrolling interests — — 39,579 — — — 39,579 Repurchase share from noncontrolling interest — — (255 ) — — — (255 ) Equity restructure of Xuncheng — — 23,214 — (23,214 ) — — Foreign currency translation adjustment — — — — — (72,193 ) (72,193 ) Unrealized gain on available-for-sale — — — — — 35,636 35,636 Balance at May 31, 2016 157,439,397 1,584 223,422 (9 ) 1,116,627 62,948 1,404,572 Reissuance of Treasury stock for the exercises of employee share options 48,047 — 256 — — — 256 Reissuance of Treasury stock for Non-vested 200,000 — (2 ) 2 — — — Share based compensation expense — — 20,287 — — — 20,287 Net income — — — — 274,457 — 274,457 Capital injection of noncontrolling interests — — 4,871 — — — 4,871 NCI transactions in Xuncheng — — 74 — — — 74 Capital injection in Taiyanggong Kindergarten — — 218 — — — 218 Foreign currency translation adjustment — — — — — (46,331 ) (46,331 ) Unrealized gain on available-for-sale — — — — — 22,544 22,544 Balance at May 31, 2017 157,687,444 1,584 249,126 (7 ) 1,391,084 39,161 1,680,948 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED MAY 31, 2015, 2016 AND 2017 (In thousands, except share and per share data, or otherwise noted) Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company Statements of Cash Flows (In thousands) Years ended May 31, 2015 2016 2017 US$ US$ US$ Cash flows from operating activities: Net income 193,013 224,884 274,457 Adjustments to reconcile net income to net cash provided by (used in) operating activities Equity in earnings of subsidiaries (205,974 ) (241,615 ) (292,571 ) Dividend received from subsidiaries — 49,984 43,417 Share-based compensation expense 15,689 16,810 20,287 Changes in operating assets and liabilities: Prepaid expenses and other current assets (2,613 ) 5,135 5,404 Accrued expenses and other current liabilities (2,728 ) (3,673 ) (2,341 ) Amounts due from/to related parties (762 ) (1,446 ) (40,207 ) Net cash (used in) provided by operating activities (3,375 ) 50,079 8,446 Cash flows from investing activities Investments in term deposits — (10,000 ) — Payment for available-for-sale (10,300 ) (9,500 ) (1,000 ) Proceed from investment withdrawn in Dajie.com — 540 — Loan to related parties (6,423 ) 1,487 — Investment in a subsidiary — — (8,500 ) Repayment from related parties — 8,512 — Net cash used in investing activities (16,723 ) (8,961 ) (9,500 ) Cash flows from financing activities: Proceeds from issuance of common shares upon exercise of share options 11,332 2,176 542 Loan from a related party 75,060 8,610 — Cash paid for shares repurchase (59,420 ) — — Cash paid for dividend — (62,668 ) — Net cash provided by (used in) financing activities 26,972 (51,882 ) 542 Net increase / (decrease) in cash and cash equivalents 6,874 (10,764 ) (512 ) Cash and cash equivalents, beginning of year 15,874 22,748 11,984 Cash and cash equivalents, end of year 22,748 11,984 11,472 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED MAY 31, 2015, 2016 AND 2017 (In thousands, except share and per share data, or otherwise noted) Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company Note to the Financial Statements 1. BASIS FOR PREPARATION The condensed financial information of the Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Company used the equity method to account for investments in its subsidiaries and VIEs. 2. INVESTMENTS IN SUBSIDIARIES AND VIEs The Company and its subsidiaries and VIEs were included in the consolidated financial statements where the inter-company balances and transactions were eliminated upon consolidation. For purpose of the Company’s stand-alone financial statements, its investments in subsidiaries and VIEs were reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries and VIEs were reported as equity in earnings of subsidiaries and VIEs in the accompanying parent company financial statements. 3. INCOME TAXES The Company is a Cayman Islands company, therefore, is not subjected to income taxes for all years presented. 4. RELATED-PARTY TRANSACTIONS The following represented related party balances as of May 31, 2016 and 2017: May 31, 2016 2017 US$ US$ Amount due from related parties: Winner Park 12 12 Abundant State Limited — 40,000 Elite Concept Holdings Limited 9,897 10,104 Koolearn Holdings Limited 180 180 New Oriental China 6,669 6,669 16,758 56,965 Amount due to related parties: Elite Concept Holdings Limited 357 357 Abundant State Limited 81,798 81,798 Smart Shine 1,487 1,487 83,642 83,642 All related party balances were non-interest |
Significant Accounting Polici36
Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and VIEs’ schools and subsidiaries. The Company and its WFOEs have entered into contractual arrangements with the VIEs and its shareholder, which enable the Company to (1) have power to direct activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Company is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. All inter-company transactions and balances have been eliminated upon consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include purchase price allocation relating to the business acquired, the valuation allowance for deferred tax assets, economic lives and impairment of property and equipment, impairment of goodwill, impairment of long-term investments, fair value of long-term available-for-sale |
Business combinations | Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling Where the consideration in an acquisition includes contingent consideration and the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and if recorded as a liability, it is subsequently carried at fair value with changes in fair value reflected in earnings. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. |
Term deposits | Term deposits Term deposits consist of deposits placed with financial institutions with original maturities of greater than three months and less than one year. |
Short-term investments | Short-term investments Short term investments consist mostly of held-to-maturity held-to-maturity The Group reviews its held-to-maturity |
Restricted cash | Restricted cash Restricted cash represents Renminbi (“RMB”) deposits in bank accounts as deposits for establishing new schools and subsidiaries. Restricted cash is classified as either current or non-current |
Allowance for doubtful accounts | Allowance for doubtful accounts Accounts receivable represents amounts due from corporate customers of the Group’s various schools and subsidiaries. The Group provides allowance for doubtful accounts based on historical collection experience and a review of the current status of accounts receivable and advances to suppliers. Accounts receivable and advances to suppliers are presented net of allowance for doubtful accounts. Changes in the allowance for doubtful accounts were as follows: As of May 31, 2016 2017 US$ US$ Beginning balance 801 408 Charge during the year 235 354 Written-off (628 ) (177 ) Ending balance 408 585 |
Inventory | Inventory Inventories of the Group are mainly consisted of books. Inventories are stated at the lower of cost or net realizable value. |
Land use rights | Land use rights Land use rights are recorded at cost and amortized on a straight-line basis over the remaining term of the land certificate, from 38.5 to 50 years. |
Property and equipment | Property and equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization is calculated on a straight line basis over the following estimated economic lives: Buildings 20-50 Transportation equipment 10 years Furniture and education equipment 5 years Computer equipment and software 3 years Leasehold improvements Shorter of the lease term or estimated economic life |
Construction in progress | Construction in progress The Group constructs certain of its property and equipment. In addition to cost under the construction contracts, interest cost and external costs directly related to the construction of such facilities, including equipment installation and shipping costs, are capitalized. Depreciation is recorded at the time assets are ready for the intended use. |
Impairment of long-lived assets | Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. The Group did not record impairment losses on long-lived assets during the years ended May 31, 2015, 2016 and 2017. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis (May 31 for the Group) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the stock prices, business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. In order to test goodwill for impairment, the Group first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step two-step The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The Group recognized nil, nil and US$1,682 impairment loss on goodwill during the years ended May 31, 2015, 2016 and 2017. |
Cost Method Investments | (a) Cost Method Investments For investee companies over which the Group does not have significant influence and a controlling interest, the Group carries the investment at cost and recognizes as income any dividend received from distribution of the investee’s earnings. The Group reviews its cost method investments for impairment whenever an event or circumstance indicates that an OTTI has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its cost method investments. An impairment charge is recorded if the cost of an investment exceeds its fair value and such excess is determined to be other-than temporary. The Group estimated the fair value of these investee companies based on the discounted cash flow approach. Factors the Group considers in making such a determination include general market conditions, the duration and the extent to which the fair value of an investment is less than its cost, and the Group’s intent and ability to hold such investment. The Group recorded US$2, nil and nil impairment losses on its cost method investments during the years ended May 31, 2015, 2016 and 2017, respectively. |
Equity Method Investments | (b) Equity Method Investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. For certain investments, where the Group holds more than 50% equity interest, the Group may only have significant influence but not have control over the investees. Equity method is also used to account for these investments. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimated the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long term growth rate of a company’s business, the estimation of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The Company did not record impairment losses on its equity method investment during the years ended May 31, 2015, 2016 and 2017, respectively. |
Available-for-sale Investments | (c) Available-for-sale For investments in investees’ stocks which are determined to be debt securities, the Group accounts for them as long-term available-for-sale held-to-maturity Available-for-sale The Group reviews its investments for OTTI based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees. The Company recorded nil, nil and US$2,338 impairment losses on its available-for-sale |
Long-term Held-to-maturity Investments | (d) Long-term Held-to-maturity The Group’s long-term held-to-maturity investment represents a trust guaranteed by a bank with the maturity of more than one year, which is stated at its amortized cost. As of May 31, 2017, the related balance was all collected. |
Value added tax ("VAT") | Value added tax ( “ VAT ” ) Pursuant to the PRC tax laws, in case of any product sales, generally the VAT rate is 3% of the gross sales for small scale VAT payer and 17% of the gross sales for general VAT payer. Most of the subsidiaries of the Company are deemed as general VAT payer for the sales of guidance materials and the intercompany sales of self-developed software. For general VAT payer, VAT on sales is calculated at 17% on revenue from product sales and paid after deducting input VAT on purchases. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Group’s consolidated financial statements. On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program were phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in Group’s consolidated financial statements. Since May 2016, in accordance with Cai Shui [2016] No. 68, the non-academic non-academic |
Revenue recognition | Revenue recognition Revenue is recognized when persuasive evidence that an arrangement exists, delivery of the product or service has occurred, the selling price is both fixed and determinable and collection is reasonably assured. Revenue is reported net of business taxes, VAT and refunds. Business tax and VAT amounted to US$45,664 and US$52,993 for the years ended May 31, 2015 and 2016, respectively. Subsequent to May 2016, the Group no longer incurred business taxes. The primary sources of the Group’s revenues are as follows: (a) Educational programs and services The educational programs and services consist of language training and test preparation courses, primary and secondary school education and college admission examination retaking training services. Tuition is generally paid in advance and is initially recorded as deferred revenue. Tuition revenue for educational programs and services is recognized proportionately as the instructions are delivered, and is reported net of business taxes, VAT and related surcharges, and tuition refunds. Students are entitled to a short term course trial period which commences on the date the course begins. Tuition refunds are provided to students if they decide within the trial period that they no longer want to take the course. Tuition refunds have been insignificant in the fiscal years ended May 31, 2015, 2016 and 2017, respectively. After the trial period, if a student withdraws from a class, usually no refunds will be provided and any collected but unearned portion of the fee is recognized at that time. The Group also sells online-learning cards primarily to distributors at fixed prices after deducting a pre-determined e-learning e-learning (b) Books and others The Group sells educational books or other educational materials either through its own book stores or websites or through third party distributors. Revenue from sales made through the Group’s book stores is recognized upon sales to customers. Revenue through distributors is recognized once the products are sold to the end customers. |
Operating leases | Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the shorter of the lease term or estimated economic life. |
Advertising costs | Advertising costs The Group expenses advertising costs as they incurred them. Total advertising expenses were US$38,295, US$39,753 and US$41,498, for the years ended May 31, 2015, 2016 and 2017, respectively, and have been included as part of selling and marketing expenses. |
Government subsidies | Government subsidies The Group recognizes government subsidies as miscellaneous income when they are received because they are not subject to any past or future conditions, there are no performance conditions or conditions of use, and they are not subject to future return. Government subsidies received and recognized as miscellaneous income totaled US$1,230, US$494 and US$1,325, for the years ended May 31, 2015, 2016 and 2017, respectively. |
Foreign currency translation | Foreign currency translation The Company’s functional and reporting currency is the United States dollars (“U.S. dollars”). The financial records of the Company’s subsidiaries and the VIEs located in the PRC are maintained in its local currency, the RMB which is the functional currency of these entities. The financial records of the Company’s subsidiaries located in Hong Kong are maintained in U.S. dollars, which is the functional currency of these entities. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the reporting currency at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates, and revenues and expenses are translated using the average rate of exchange in effect during the reporting period. Translation adjustments are reported and shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and consolidated statements of comprehensive income. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the consolidated statements of operations. |
Foreign currency risk | Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents, restricted cash, and term deposits denominated in RMB amounted to US$747,762 and US$762,895 as of May 31, 2016 and 2017, respectively. |
Fair value | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls on is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group determines the transfers between levels are deemed to have occurred at the end of the periods presented. Measured fair value on a recurring basis The Group measured its financial assets and liabilities primarily including available-for-sale As of May 31, 2016 and 2017, the available-for-sale May 31, 2016 Description Quoted Prices in Significant Other Significant Total US$ US$ US$ US$ Available for sales investments: Common Shares 15,945 — — 15,945 Redeemable preferred shares — 42,263 69,873 112,136 Convertible bond — 12,310 — 12,310 Asset management plan and trust — 23,413 — 23,413 Total 15,945 77,986 69,873 163,804 May 31, 2017 Description Quoted Prices in Significant Other Significant Total US$ US$ US$ US$ Available for sales investments: Common Shares 36,406 — — 36,406 Redeemable preferred shares — 30,669 123,029 153,698 Asset management plan and trust — 7,486 — 7,486 Total 36,406 38,155 123,029 197,590 The Company measured the fair value of its investments in common shares using the market approach based on the quoted stock price of its investee in the active market and has classified it as level 1 measurement. The Company measured the fair value of its convertible bond and asset management plan and trust based on the respective principal and expected returns and has classified those as level 2 measurement. Redeemable preferred shares do not have a quoted market rate. For those, the Company measured their fair value based on recent transactions or based on the market approach or income approach when no recent transactions are available. Recent transactions include the purchase price agreed by an independent third party for an investment with similar terms or a recent transaction agreed by the Company and the investee and has been classified as level 2 measurement. When no recent transactions are available, a market approach or income approach will be used by the Company to measure fair value. The market approach takes into consideration a number of factors including market multiple and discount rates from traded companies in the industry and requires the Company to make certain assumptions and estimates regarding industry factors. Specifically, some of the significant unobservable inputs included the investee’s historical earning on sale, discount of lack of marketability, investee’s time to IPO as well as related volatility. The income approach takes into consideration a number of factors including management projection of discounted future cash flow of the investee as well as an appropriate discount rate. The Company has classified those as level 3 measurement. The assumptions are inherently uncertain and subjective. Changes in any unobservable inputs may have a significant impact on the fair values. The Group did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. During the years ended May 31, 2016 and 2017, the Group transferred several redeemable preferred shares from level 2 to level 3 for a total of US$63,881 and US$31,505 respectively as the Company changed its fair value measurement for those investees. Specifically, the Company changed its measurement method from recent transactions to a market approach or income approach described in the previous paragraph to determine the investment’s fair value as no recent transactions were available as of May 31, 2016 and 2017. The following table provides additional information about the reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs (level 3). Available-for-sale US$ Balance at June 1, 2015 — Transfer from level 2 fair value measurements 63,881 Initial recognition 2,844 Unrealized gain 3,148 Balance at May 31, 2016 69,873 Transfer from level 2 fair value measurements 31,505 Initial recognition — Unrealized gain 21,651 Balance at May 31, 2017 123,029 Measured fair value on a nonrecurring basis Goodwill and other intangible assets are measured at fair value on a nonrecurring basis when an impairment is recognized. The Group measured goodwill at fair value on a nonrecurring basis when it is annually evaluated or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group measured acquired intangible assets using the income approach—discounted cash flow method when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group did not recognize any impairment loss related to other intangible assets arising from acquisitions for the years ended May 31, 2015, 2016 and 2017. The fair value of goodwill is determined using discounted cash flows, and an impairment loss will be recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The Group recognized nil, nil and US$1,682 of impairment loss related to goodwill for the years ended May 31, 2015, 2016 and 2017, respectively. |
Fair value of financial instruments | Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, term deposits, short-term held-to-maturity available-for-sale held-to-maturity Available-for-sale held-to-maturity held-to-maturity |
Net income per share | Net income per share Basic net income per share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised into common shares. Common share equivalents are excluded from the computation of the diluted net income per share in years when their effect would be anti-dilutive. |
Income taxes | Income taxes The Group accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities using enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of operations in the period of change. Deferred tax assets are reduced by a valuation allowance when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. The Group accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Group believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Group recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense |
Comprehensive income | Comprehensive income Comprehensive income includes net income, unrealized gain or loss on available-for-sale |
Share-based compensation | Share-based compensation Share-based payments to employees and directors are measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense net of a forfeiture rate on a straight-line basis over the requisite service period, with a corresponding addition to paid-in non-vested non-constant The amount of compensation expense recognized at any date is at least equal to the portion of the fair value of the awards that are vested as of that date. The estimate of forfeitures is based on historical turnover rate and will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, term deposits, restricted cash, and accounts receivable. As of May 31, 2017, substantially all of the Group’s cash and cash equivalents, and term deposits were deposited with financial institutions with high-credit ratings and quality. Accounts receivable are typically unsecured and are derived from revenues earned from customers in the PRC. The Group performs periodic credit evaluations and provides an allowance for doubtful accounts to reduce the accounts receivable balance to its net realizable value. The Group did not have any customers constituting 10% or more of the consolidated net revenues and accounts receivable in fiscal years 2015, 2016 and 2017, respectively. |
Newly adopted accounting pronouncements | Newly adopted accounting pronouncements In February 2015, the Financial Accounting Standards Board (“FASB”) issued the Audit Standards Update (“ASU”) 2015-02, In July 2015, the FASB issued ASU 2015-11, |
Recently issued accounting pronouncements not yet adopted | Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued ASU 2014-09 605-35, The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. In August 2015, FASB issued its final standard formally amending the effective date of the new revenue recognition guidance. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The new revenue guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Group plans to adopt the ASU on June 1, 2018, and is in the process of evaluating the impact to its consolidated financial statements. In January 2016, FASB issued ASU 2016-01 not-for-profit The new guidance makes targeted improvements to existing U.S. GAAP by: • Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; • Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; • Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; • Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; • Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and • Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. Adoption of the amendment must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except for amendments related to equity instruments that do not have readily determinable fair values which should be applied prospectively. The Group does not expect the adoption of this guidance will have a significant effect on the Group’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, right-of-use In March 2016, the FASB issued ASU No. 2016-07, step-by-step available-for-sale In March 2016, the FASB issued ASU 2016-09, In November 2016, the FASB issued ASU 2016-18: beginning-of-period end-of-period In January 2017, the FASB issued ASU 2017-04: |
Organization and Principal Ac37
Organization and Principal Activities (Tables) | 12 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Details of Company's Subsidiaries and VIE and Its Subsidiaries | As of May 31, 2017, details of the Company’s subsidiaries, variable interest entity and its schools and subsidiaries were as follows: Name Date of Place of Legal Principal activity Subsidiaries of the Company: Beijing Decision Education & Consulting Company Limited (“Beijing Decision”) April 20, 2005 PRC 100% Educational information system and other consulting services Beijing Judgment Education & Consulting Company Limited (“Beijing Judgment”) April 20, 2005 PRC 100% Educational consulting and Beijing Hewstone Technology Company Limited (“Beijing Hewstone”) April 20, 2005 PRC 100% Educational software and distribution and other Beijing Pioneer Technology Company Limited (“Beijing Pioneer”) January 8, 2009 PRC 100% Educational software and distribution and other Shanghai Smart Words Software Technology Company Limited (“Shanghai Smart Words”) December 8, 2010 PRC 100% Educational consulting and Beijing Smart Wood Software Technology Company Limited (“Beijing Smart Wood”) December 21, 2011 PRC 100% Educational consulting and Beijing Joy Tend Technology Company Limited (“Beijing Joy Tend”) January 31, 2013 PRC 100% Educational consulting and Subsidiaries of the Company: Beijing Right Time Technology Company Limited (“Beijing Right Time”) January 31, 2013 PRC 100% Educational consulting Beijing Sincerity Technology Company Limited (“Beijing Sincerity”) April 12, 2013 PRC 100% Educational consulting Beijing Magnificence Technology Company Limited (“Beijing Magnificence”) November 1, 2013 PRC 100% Educational consulting Beijing Top Technology Company Limited (“Beijing Top”) November 13, 2013 PRC 100% Educational consulting Beijing Shenghe Technology Company Limited (“Beijing Shenghe”) May 27, 2014 PRC 100% Educational consulting Beijing Jinghong Software Technology Company Limited (“Beijing Jinghong”) September 18, 2016 PRC 100% Educational consulting Beijing New Oriental Walkite International Travel Co., Ltd. May 22, 2012 PRC 100% Consulting Walkite International Academy Co., Ltd. March 16, 2015 U.K. 100% Consulting Beijing New Road Information Consulting Services Co., Ltd. (“New Road”) March 6, 2015 PRC 51% Consulting Walkite International Academy (U.S.A.) Co., Ltd. April 13, 2015 U.S.A. 100% Consulting Elite Concept Holdings Limited (“Elite Concept”) December 3, 2007 Hong Kong 100% Educational Consulting Winner Park Limited (“Winner Park”) December 9, 2008 Hong Kong 100% Educational Consulting Smart Shine International Limited (“Smart Shine”) December 9, 2008 Hong Kong 100% Educational Consulting Abundant State Limited (“Abundant”) March 20, 2013 BVI 100% Educational Consulting Koolearn Holding Limited (“Koolearn HK”) June 21, 2013 Hong Kong 100% Educational Consulting New Oriental Vision Overseas Consulting Australia Pty Ltd. January 25, 2017 Australia 100% Consulting Variable interest entity of the Company: New Oriental Education & Technology Group Co., Ltd (“New Oriental China”) August 2, 2001 PRC N/A Education consulting, Schools and subsidiaries of New Oriental China: Beijing Haidian District Privately-Funded New Oriental School (“Beijing Haidian School”) October 5, 1993 PRC N/A Language and post- Shanghai Yangpu District New Oriental Advanced Study School June 1, 2000 PRC N/A Language education Guangzhou Haizhu District Privately-Funded New Oriental Training School (“Guangzhou Haizhu School”) (a) September 8, 2000 PRC N/A Language education Guangzhou New Oriental Training School (“Guangzhou School”) (a) August 20, 2013 PRC N/A Language education Guangzhou Panyu District Privately-Funded New Oriental Training Centre (“Guangzhou Panyu School”) (a) June 19, 2013 PRC N/A Language education Wuhan New Oriental Training School April 28, 2002 PRC N/A Language education Tianjin New Oriental Training School August 21, 2002 PRC N/A Language education Xi’an Yanta District New Oriental School November 26, 2002 PRC N/A Language education Nanjing Gulou New Oriental Advanced Study School November 28, 2002 PRC N/A Language education Shenzhen New Oriental Training School October 15, 2003 PRC N/A Language education Shenyang New Oriental Foreign Language Training School June 18, 2003 PRC N/A Language education Chongqing New Oriental Training School August 15, 2003 PRC N/A Language education Chengdu New Oriental School August 18, 2003 PRC N/A Language education Xiangyang New Oriental Training School October 26, 2004 PRC N/A Language education Changsha Furong District New Oriental Training School May 25, 2005 PRC N/A Language education Jinan New Oriental School May 31, 2005 PRC N/A Language education Taiyuan New Oriental Training School April 20, 2005 PRC N/A Language education Ha’er Bin Nangang District New Oriental Training School May 20, 2005 PRC N/A Language education Changchun New Oriental Training School July 26, 2005 PRC N/A Language education Hangzhou New Oriental Advanced Study School (“Hangzhou School”) (b) July 21, 2005 PRC N/A Language education Hangzhou New Oriental Education & Consulting Company Limited May 8, 2012 PRC N/A Language education Fuyang New Oriental Training School (“Fuyang School”) (b) October 22, 2012 PRC N/A Language education Zhengzhou New Oriental Training School July 19, 2005 PRC N/A Language education Zhuzhou New Oriental Training School April 30, 2006 PRC N/A Language education Shijiazhuang New Oriental School April 3, 2006 PRC N/A Language education Suzhou New Oriental School April 26, 2006 PRC N/A Language education Anshan New Oriental Training School June 13, 2006 PRC N/A Language education Schools and subsidiaries of New Oriental China: Hefei New Oriental Foreign Language Training School June 13, 2006 PRC N/A Language education Yunnan New Oriental Training School June 13, 2006 PRC N/A Language education Wuxi New Oriental Advanced Study School August 14, 2006 PRC N/A Language education Fuzhou Gulou District New Oriental Training School September 1, 2006 PRC N/A Language education Nanchang Donghu District New Oriental Language School March 16, 2007 PRC N/A Language education Yichang Xiling District New Oriental School January 1, 2006 PRC N/A Language education Jingzhou New Oriental School April 10, 2007 PRC N/A Language education Dalian New Oriental Training School June 12, 2007 PRC N/A Language education Huangshi New Oriental Training School March 17, 2008 PRC N/A Language education Ningbo New Oriental School April 16, 2008 PRC N/A Language education Lanzhou Chengguan District New Oriental School March 19, 2008 PRC N/A Language education Xiamen Siming District New Oriental Education Training School July 8, 2008 PRC N/A Language education Qingdao New Oriental Language Training School August 5, 2008 PRC N/A Language education Nanning New Oriental Education Training School September 18, 2008 PRC N/A Language education Xuzhou New Oriental Advanced Study School March 31, 2009 PRC N/A Language education Xiangtan Yuhu District New Oriental School July 15, 2010 PRC N/A Language education Zhenjiang New Oriental School July 19, 2010 PRC N/A Language education Luoyang New Oriental School November 25, 2010 PRC N/A Language education Nantong Chongchuan District New Oriental School December 28, 2010 PRC N/A Language education Jilin Chuanying District New Oriental School March 17, 2011 PRC N/A Language education Guiyang Yunyan District New Oriental School March 21, 2011 PRC N/A Language education Inner Mongolia Hohhot New Oriental School April 2, 2011 PRC N/A Language education Foshan New Oriental School September 1, 2011 PRC N/A Language education Tangshan Lubei District New Oriental School May 25, 2011 PRC N/A Language education Urumqi New Oriental School May 22, 2011 PRC N/A Language education Shiyan New Oriental School May 23, 2011 PRC N/A Language education Quanzhou Fengze District New Oriental Education Training School June 26, 2015 PRC N/A Language education Wenzhou New Oriental School August 14, 2015 PRC N/A Language education Weifang New Oriental Training School October 10, 2015 PRC N/A Language education Shanghai New Oriental Education & Training Company Limited September 15, 2015 PRC N/A Language education Zhuhai Xiangzhou District New Oriental Training Centre December 11, 2015 PRC N/A Language education Yangzhou Guangling District New Oriental Training Centre March 24, 2016 PRC N/A Language education Jinzhou New Oriental Training School April 19, 2016 PRC N/A Language education Baoding Jingxiu District New Oriental Training School July 8, 2016 PRC N/A Language education Taian New Oriental School September 9, 2016 PRC N/A Language education Chongqing Yongchuan District New Oriental Training School September 25, 2016 PRC N/A Language education Yantai Zhifu District New Oriental Foreign LanguageTraining School November 11, 2016 PRC N/A Language education Kaifeng New Oriental Education Information Consulting Co., Ltd. October 31, 2016 PRC N/A Language education Beijing Shengdeweixin Education & Technology Co., Ltd. November 22, 2016 PRC N/A Language education Cangzhou Yunhe District New Oriental Education Training School November 29, 2016 PRC N/A Language education Qinghuangdao Haigang District New Oriental Training School January 17, 2017 PRC N/A Language education Zhangzhou Development Zone New Oriental Education Training School March 22, 2017 PRC N/A Language education Anyang Beiguan District New Oriental Education Training School May 16, 2017 PRC N/A Language education Nanyang New Oriental Education Training Co., Ltd. April 19, 2017 PRC N/A Language education Handan Congtai District New Oriental Training School April 27, 2017 PRC N/A Language education Beijing Shuangshi Oriental Education & Technology Co., Ltd. April 27, 2017 PRC N/A Educational consulting Changchun Tongwen Gaokao Training School (“Tongwen Gaokao”) October 27, 2008 PRC N/A College admission examination training Changchun Tongwen Senior High School (“Tongwen High Schiool”) October 27, 2008 PRC N/A Primary secondary China Management Software Institute (“CMSI”) September 1, 2012 PRC N/A Higher education Schools and subsidiaries of New Oriental China: Beijing New Oriental Yangzhou Foreign Language School June 6, 2002 PRC N/A Primary secondary Yangzhou Guangling District New Oriental Kindergarten of Stars (“Yangzhou Kindergarten”) August 26, 2014 PRC N/A Kindergarten Beijing Changping New Oriental Foreign Language School (“Changping school”) July 19, 2010 PRC N/A Primary secondary Beijing New Oriental Dogwood Cultural Communications Co., Ltd. May 16, 2003 PRC N/A Sales of educational Beijing New Oriental Dogwood, Bookstore, Audio & Video Co., Ltd. March 2, 2004 PRC N/A Sales of educational Chengdu New Oriental Dogwood Bookstore Products Co., Ltd. January 18, 2004 PRC N/A Sales of educational Chongqing New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. February 25, 2004 PRC N/A Sales of educational Guangzhou Dogwood Bookstore & Audio-Visual Products Co., Ltd. November 11, 2003 PRC N/A Sales of educational Wuhan New Oriental Dogwood Bookstore & Audio- Visual Products Co., Ltd. December 16, 2003 PRC N/A Sales of educational Xi’an New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. June 3, 2003 PRC N/A Sales of educational Shanghai Dogwood Bookstore & Audio-Visual Products Co., Ltd. September 28, 2003 PRC N/A Sales of educational Changchun New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. October 8, 2005 PRC N/A Sales of educational Ha’er Bin New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. March 13, 2006 PRC N/A Sales of educational Taiyuan New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. July 12, 2006 PRC N/A Sales of educational Hangzhou Dogwood Bookstore Products Co., Ltd. July 25, 2007 PRC N/A Sales of educational Nanchang Dogwood Bookstore & Audio-Visual Products Co., Ltd. September 14, 2007 PRC N/A Sales of educational Kunming Dogwood Bookstore & Audio-Visual Products Co., Ltd. November 21, 2007 PRC N/A Sales of educational Dalian New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. March 25, 2008 PRC N/A Sales of educational Schools and subsidiaries of New Oriental China: Lanzhou New Oriental Dogwood Bookstore & Audio- Visual Products Co., Ltd. October 28, 2008 PRC N/A Sales of educational Suzhou New Oriental Dogwood Bookstore & Audio- Visual Products Co., Ltd. June 1, 2010 PRC N/A Sales of educational Xuzhou New Oriental Dogwood Bookstore & Audio- Visual Products Co., Ltd. September 29, 2010 PRC N/A Sales of educational Urumqi Dogwood Bookstore & Audio-Visual Products Co., Ltd. September 13, 2011 PRC N/A Sales of educational Hohhot Dogwood Bookstore & Audio-Visual Products Co., Ltd. February 7, 2012 PRC N/A Sales of educational Zhuhai New Oriental Dogwood Bookstore & Audio- Visual Products Co., Ltd. September 28, 2016 PRC N/A Sales of educational Beijing New Oriental Vision Overseas Consultancy Co., Ltd. February 19, 2004 PRC N/A Consulting Shanghai Vision Overseas Service Co., Ltd. March 24, 2011 PRC N/A Consulting Shandong New Oriental Vision Overseas Consultancy Co., Ltd. September 8, 2011 PRC N/A Consulting Shanxi New Oriental Vision Overseas Consultancy Co., Ltd. April 22, 2014 PRC N/A Consulting Fujian New Oriental Vision Overseas Consultancy Co., Ltd. May 13, 2014 PRC N/A Consulting Guangdong Vision Overseas Consultancy Co., Ltd. May 29, 2014 PRC N/A Consulting Xinjiang New Oriental Vision Overseas Consultancy Co., Ltd. July 9, 2014 PRC N/A Consulting Shaanxi New Oriental Vision Overseas Consultancy Co., Ltd. January 23, 2015 PRC N/A Consulting Tianjin New Oriental Vision Overseas Consultancy Co., Ltd. May 13, 2015 PRC N/A Consulting Inner Mongolia New Oriental Vision Overseas Consultancy Co., Ltd. May 29, 2015 PRC N/A Consulting Liaoning New Oriental Vision Overseas Consultancy Co., Ltd. June 10, 2015 PRC N/A Consulting New Oriental Vision Overseas Consulting (U.K.) Ltd. June 10, 2015 U.K. N/A Consulting Gansu New Oriental Vision Overseas Consultancy Co., Ltd. May 15, 2015 PRC N/A Consulting Qingdao New Oriental Vision Overseas Consultancy Co., Ltd. August 20, 2015 PRC N/A Consulting Hunan New Oriental Vision Overseas Consultancy Co., Ltd. November 3, 2015 PRC N/A Consult ing Beijing New Oriental Vision Overseas Service Co., Ltd. February 24, 2016 PRC N/A Consulting Beijing Ainuoshida Education & Technology Co., Ltd and its subsidiaries September 24, 2014 PRC N/A Consulting Schools and subsidiaries of New Oriental China: Beijing New Oriental Dogwood Advertisement Co., Ltd. (“Dogwood Advertisement”) January 20, 2004 PRC N/A Advertising Beijing New Oriental Xuncheng Network Technology Co., Inc.Ltd. (c) March 11, 2005 PRC N/A On-line education Beijing New Oriental Kuxuehuisi Network Technology Co., Ltd. February 1, 2013 PRC N/A On-line Beijing DongFangYouBo Network Technology Co., Ltd. June 23, 2016 PRC N/A On-line Leci Internet Technology (Beijing) Company Limited (“Leci Internet”) February 11, 2014 PRC N/A Educational consulting and Beijing Dongfangzhuoyong Investment Management Co., Ltd. April 29, 2014 PRC N/A Investment management Ningbo Meishan Bonded Port Area Hexin Oriental Asset Management Co., Ltd. April 28, 2017 PRC N/A Asset management Beijing New Oriental MEGAWAY Education & Consulting Co., Ltd. March 4, 2015 PRC N/A Educational consulting Beijing Aixuehuisi Education & Technology Co., Ltd. January 6, 2015 PRC N/A Technology Beijing Fishpond Software Technology Co., Ltd. November 24, 2015 PRC N/A Technology Beijing Bright the Future Education & Technology Co., Ltd. July 18, 2016 PRC N/A Consulting Beijing New Oriental Stars Education & Consulting Co., Ltd (“Stars”) July 11, 2007 PRC N/A Kindergarten Beijing Chao Yang District Kindergarten of Stars (“ChaoYang Kindergarten”) November 20, 2007 PRC N/A Kindergarten Nanjing Yuhuatai District New Oriental Kindergarten of Stars (“Nanjing Kindergarten”) April 10, 2009 PRC N/A Kindergarten Qingdao Alice Education & Technology Company Limited (“Qingdao Alice “) August 21, 2014 PRC N/A Kindergarten Qingdao Laoshan District Happy Alice Kindergarten (“Laoshan Alice”) December 4, 2014 PRC N/A Kindergarten Qingdao Happy Alice Kindergarten (“Qingdao Happy Alice”) November 29, 2005 PRC N/A Kindergarten Qingdao Chengyang District Happy Alice Kindergarten (“Chengyang Alice”) October 30, 2014 PRC N/A Kindergarten Beijing Chao Yang District Taiyanggong Kindergarten of Stars (“Taiyanggong Kindergarten”) January 20, 2017 PRC N/A Kindergarten (a) Guangzhou School and Guangzhou Panyu School were established in the year ended May 31, 2014. Although they are separate legal entities, from the perspective of the Group’s internal management, they together with Guangzhou Haizhu School are considered as one school since they are operated by the same local management in Guangzhou. (b) Although the Fuyang School is a separate legal entity, from the perspective of the Group’s internal management, Fuyang School and Hangzhou School are considered as one school since they are operated by the same local management in Hangzhou. (c) The contractual agreements between Xuncheng, New Oriental China and Chongshengdongfang were terminated in September 2015. |
Balances and Amounts of Company's WFOEs and VIEs | The following financial statement balances and amounts of the VIEs were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions among the offshore companies, WFOEs and VIEs in the Group: As of May 31, 2016 2017 US$ US$ Total current assets 1,262,811 1,590,750 Total non-current 381,262 488,709 Total assets 1,644,073 2,079,459 Total current liabilities 860,877 1,137,288 Total non-current 1,432 2,174 Total liabilities 862,309 1,139,462 Years ended May 31, 2015 2016 2017 US$ US$ US$ Net revenues 1,221,101 1,443,851 1,777,864 Net income 265,485 313,828 333,456 Net cash provided by operating activities 357,893 450,848 450,196 Net cash used in investing activities (167,847 ) (286,235 ) (459,532 ) Net cash provided by financing activities — 69,747 8,807 |
Significant Accounting Polici38
Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Changes in Allowance for Doubtful Accounts | Changes in the allowance for doubtful accounts were as follows: As of May 31, 2016 2017 US$ US$ Beginning balance 801 408 Charge during the year 235 354 Written-off (628 ) (177 ) Ending balance 408 585 |
Estimated Useful Lives of Assets | Depreciation and amortization is calculated on a straight line basis over the following estimated economic lives: Buildings 20-50 Transportation equipment 10 years Furniture and education equipment 5 years Computer equipment and software 3 years Leasehold improvements Shorter of the lease term or estimated economic life |
Schedule of Available-for-Sale Securities Recorded in Long Term Investments Include Redeemable Preferred Shares, Common Shares, Convertible Bond and Assets Management Plan and Trust Measured and Recorded at Fair Value on Recurring Basis | As of May 31, 2016 and 2017, the available-for-sale May 31, 2016 Description Quoted Prices in Significant Other Significant Total US$ US$ US$ US$ Available for sales investments: Common Shares 15,945 — — 15,945 Redeemable preferred shares — 42,263 69,873 112,136 Convertible bond — 12,310 — 12,310 Asset management plan and trust — 23,413 — 23,413 Total 15,945 77,986 69,873 163,804 May 31, 2017 Description Quoted Prices in Significant Other Significant Total US$ US$ US$ US$ Available for sales investments: Common Shares 36,406 — — 36,406 Redeemable preferred shares — 30,669 123,029 153,698 Asset management plan and trust — 7,486 — 7,486 Total 36,406 38,155 123,029 197,590 |
Reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs | The following table provides additional information about the reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs (level 3). Available-for-sale US$ Balance at June 1, 2015 — Transfer from level 2 fair value measurements 63,881 Initial recognition 2,844 Unrealized gain 3,148 Balance at May 31, 2016 69,873 Transfer from level 2 fair value measurements 31,505 Initial recognition — Unrealized gain 21,651 Balance at May 31, 2017 123,029 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
May 31, 2017 | |
Qingdao Alice [Member] | |
Purchase Price Allocation | The purchase price was allocated as at the date of acquisition as follows: US$ Amortization Cash 2,306 Other current assets 644 Property, plant and equipment 89 1-5 years Intangible assets Trademark 1,058 10.1 years Student base 1,998 2.2 years Favorable lease 763 8.7 years Goodwill 7,540 Other current liabilities (514 ) Deferred tax liabilities (955 ) Total 12,929 |
Ainuoshida [Member] | |
Purchase Price Allocation | The purchase price was allocated as at the date of acquisition as follows: US$ Amortization Cash 2,499 Other current assets 4,874 Property, plant and equipment 493 1-5 years Intangible assets Trademark 1,708 10 years Student base 1,069 1 year Software 76 3 years Goodwill 5,516 Other current liabilities (6,040 ) Deferred tax liabilities (713 ) Fair value of the 18% equity interest (1,741 ) Noncontrolling interests (3,899 ) Total 3,842 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
May 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Short-Term Investments | Short-term investments consisted of the following: As of May 31, 2016 2017 US$ US$ Held-to-maturity 819,229 1,312,942 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
May 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventory consisted of the following: As of May 31, 2016 2017 US$ US$ Course materials in schools 5,787 7,419 Publications in bookstores 21,516 24,323 27,303 31,742 |
Prepaid Expenses and Other Cu42
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
May 31, 2017 | |
Text Block [Abstract] | |
Components of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: As of May 31, 2016 2017 US$ US$ Prepaid rent 33,135 44,746 Advances to suppliers 23,143 29,358 Interest receivable 9,341 14,005 Rental deposit 7,122 8,355 Receivable from BOCI for the proceeds of exercise of options and withholding tax 5,548 — Prepaid advertising fees 3,250 4,235 Staff advances (a) 2,829 2,514 Value added taxes recoverable 2,534 2,305 Deposit of advertising & decoration 1,961 1,411 Receivable of social insurance 1,374 1,651 Prepaid property taxes and other taxes 616 947 Others (b) 8,824 9,870 99,677 119,397 (a) Staff advances were provided to staff for traveling and related use which are expensed as incurred and staff allowance for on-site (b) Others primarily included maintenance fees, other receivables and other miscellaneous prepayments. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
May 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment consisted of the following: As of May 31, 2016 2017 US$ US$ Buildings 146,411 141,477 Transportation equipment 8,553 8,618 Furniture and education equipment 76,492 88,671 Computer equipment and software 40,707 48,385 Leasehold improvements 169,345 216,848 441,508 503,999 Less: accumulated depreciation (209,937 ) (235,853 ) Construction in-process 6,127 14,654 237,698 282,800 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 12 Months Ended |
May 31, 2017 | |
Text Block [Abstract] | |
Land Use Rights, Net | Land use rights consisted of the following: As of May 31, 2016 2017 US$ US$ Land use rights 5,178 5,003 Less: accumulated amortization (1,201 ) (1,307 ) Exchange differences (71 ) (28 ) Land use rights, net 3,906 3,668 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
May 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: As of May 31, 2016 2017 US$ US$ Costs: Intangible assets with indefinite lives: Trademark 248 241 Intangible assets with finite lives: Trademark 1,293 2,976 Courseware 47 122 Student base 1,978 2,995 Favorable lease 713 689 License 415 415 4,694 7,438 Accumulated amortization: Trademark (383 ) (581 ) Courseware (47 ) (58 ) Student base (1,404 ) (2,455 ) Favorable lease (123 ) (199 ) License (119 ) (140 ) (2,076 ) (3,433 ) Net carrying amount: Intangible assets with indefinite lives: Trademark 248 241 Intangible assets with definite lives: Trademark 910 2,395 Courseware — 64 Student base 574 540 Favorable lease 590 490 License 296 275 2,618 4,005 |
Goodwill, Net (Tables)
Goodwill, Net (Tables) | 12 Months Ended |
May 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Goodwill | As of May 31, 2016 2017 US$ US$ Costs: Beginning balance 11,194 10,545 Acquisition of Ainuoshida — 5,516 Exchange differences (649 ) (296 ) Ending balance 10,545 15,765 Accumulated goodwill impairment loss: Beginning balance — — Impairment of Tongwen — (1,682 ) Ending balance — (1,682 ) Goodwill, net 10,545 14,083 |
Long Term Investments (Tables)
Long Term Investments (Tables) | 12 Months Ended |
May 31, 2017 | |
Investments Schedule [Abstract] | |
Schedule of Long Term Investments | Long term investments consisted of the following: As of May 31, 2016 2017 US$ US$ Cost method investments: 1,460 8,132 Equity method investments: Beijing Dongfangheli Investment and Development Ltd. (“Dongfangheli”) (a) 3,451 2,851 Juesheng Education Group Ltd. (“Juesheng.com”) (b) 3,249 2,881 Suzhou Qingrui Education & Technology Co., Ltd. (“Kouyu100”) (c) 3,261 3,436 Other equity method investments (j) 3,638 2,369 Available-for-sale Shanghai Golden Education & Training Co. Ltd.(“Golden Finance”) (d) 34,242 44,809 Shanghai ALO7 Technology Co., Ltd.(“Alo7.com”) (e) 29,639 17,370 AVIC Trust Tianqi No.556 (“Trust 556”) (f) 16,037 — Tarena International, Inc. (“Tarena”) (g) 15,945 25,695 Beijing ShangJiaChongYe Education &Technology Co. Ltd.(“Shangjiachongye”) (h) 12,310 32,644 Beijing ROBOROBO Technology Co. Ltd. (“ROBOROBO”) (i) 9,999 — Beijing Shengtong Printing Co. Ltd (“Shengtong”) (i) — 10,711 Other available-for-sale 45,632 66,361 178,863 217,259 (a) In August 2014, the Group invested US$4,034 to acquire 50% equity interest in Dongfangheli, a company concentrating on investment in educational research and development programs and software consulting services. The Group used the equity method to account for the investment as the Group has the ability to exercise significant influence but does not have control over the investee. (b) In August 2014 and May 2015, the Group invested US$3,006 and US$501 respectively in Juesheng.com, a company engaging in providing international educational products search engine service, for 11.9% equity interests. These investments were classified as available-for-sale (c) In December 2014, the Group invested US$3,472 in Kouyu100, a company applying cutting edge psychoacoustic technology to spoken language training and correcting the pronunciation of a student like a real tutor, for 7% equity interest. The investment was classified as available-for-sale (d) In April and November 2015, the Group invested US$3,398 and US$11,437 respectively in Golden Finance, a company focusing on training programs associated with finance and business management, for 19.5% equity interest. Unrealized holding gains of nil, US$19,407 and US$10,567 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively. (e) On March 5, 2012, the Group acquired a convertible promissory from Alo7.com for US$1,000, which entitled the Group to automatically convert the note into equity security. On July 1, 2012, the Group converted the US$1,000 promissory note into convertible redeemable preferred shares and warrants issued by Alo7.com, for 3.4% equity ownership interest in Alo7.com on an as-converted In March, June and September 2014, the Group further invested US$2,576, US$300 and US$10,000 into Alo7.com. As of May 31, 2017, the Company had 17.2% equity interests in Alo7.com. Unrealized holding gains of US$13,428, US$1,704 and loss of US$8,678 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively. (f) In October 2015, the Group invested US$15,654 in a two-year available-for-sale (g) In March 2014, the Group invested US$13,500 in Tarena, which is a service provider of IT professional education in China, for around 3% equity interest. Unrealized holding gain of US$3,495, loss of US$1,005 and gain of US$9,750 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively. (h) In January 2016, the Group invested US$12,310 to acquire convertible bond issued by Shangjiachongye, which focuses on online education specific to vocational qualification training. In July 2016, the Group converted all of the convertible bonds into redeemable preferred shares of Shangjiachongye for a 4.9% equity interest. In the meantime, the Group additionally invested US$12,205 into redeemable preferred shares for another 4.9% equity interest. Unrealized holding gains of nil and US$8,129 were reported in other comprehensive income for the years ended May 31, 2016 and 2017, respectively. (i) In April 2015, the Group acquired 18% equity interest in ROBOROBO for a cash consideration of US$4,356, a company applying various robots build training courses for kids with different ages. Unrealized holding gains of nil and US$5,643 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively. In February 2017, the Group disposed the shares in ROBOROBO to exchange for shares newly issued by Shengtong which is an A-share available-for-sale (j) As to the other investments, they represent several insignificant investments either classified as equity method investments or available-for-sale |
Accrued Expenses and Other Cu48
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
May 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of May 31, 2016 2017 US$ US$ Accrued payroll 131,151 157,167 Payable for purchase of property and equipment 11,953 21,445 Amounts reimbursable to employees (a) 8,294 11,022 Individual taxes withholding 8,186 6,454 Refundable fees received from students (b) 5,755 8,687 Business taxes payable 5,259 — Value-added taxes payable 6,506 9,516 Accrued advertising fees 6,443 7,798 Rent payable 6,285 7,532 Welfare payable 6,004 6,102 Royalty fees payable (c) 3,637 4,011 Refundable deposit (d) 3,161 5,382 Accrued professional service fees 2,352 1,486 Other taxes payable 1,240 1,604 Others (e) 10,818 12,494 Total 217,044 260,700 (a) Amounts reimbursable to employees included traveling and the related expenses incurred by employees on behalf of the Group. (b) Refundable fees received from students represent (1) the miscellaneous expenses other than tuition fee received from students which will be paid out on behalf of students; and (2) tuition fees refundable to students for withdrawn classes. (c) Royalty fees payable related to payments to content providers for on-line (d) Refundable deposits represent student deposits for dormitory or other fees that will be refunded upon graduation and student security deposits refunded upon completion of the study tour. (e) Others primarily included transportation expenses, utility fees, property management fees, and other miscellaneous expenses payable. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
May 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Share Options Granted and NES | The following table summarizes information regarding the share options granted: Share options Shares granted Grant-date Exercise US$ US$ Grant date: February 28, 2006 7,099,500 1.00 2.02 July 21, 2006 1,620,000 1.15 2.38 September 7, 2006 100,000 2.38 3.75 March 5, 2007 3,946,500 4.09 8.75 January 17, 2012 3,060,000 10.33 12.19 Total 15,826,000 NES The following table summarizes information regarding NES granted in fiscal year 2015, 2016 and 2017: NES Grant-date Fair Value and US$ Grant date: July 23, 2014 209,650 21.01 September 29, 2014 24,020 22.32 February 5, 2015 600,000 18.52 July 9, 2015 486,330 22.69 October 19, 2015 60,000 22.45 November 16, 2016 436,016 47.19 Total 1,816,016 |
Summary of Share Options Activity under 2006 Share Incentive Plan | A summary of share options activity under 2006 Share Incentive Plan for year ended May 31, 2017 is as follows: Weighted Weighted- Remaining Aggregated US$ years US$ Options outstanding at May 31, 2016 78,337 6.13 0.58 2,829 Granted — — Exercised 48,047 5.37 Forfeited 23,938 8.75 Options outstanding at May 31, 2017 6,352 2.02 1.58 442 Options vested and expect to vest at May 31, 2017 6,352 2.02 1.58 442 Options exercisable at May 31, 2017 6,352 2.02 1.58 442 |
Summary of NES Activities under 2006 Share Incentive Plan | A summary of NES activities under 2006 Share Incentive Plan for the year ended May 31, 2017 is as follows: Number Weighted- US$ NES outstanding at May 31, 2016 400,000 18.91 Granted 436,016 47.19 Vested (200,000 ) 18.91 Forfeited (4,050 ) 47.19 NES outstanding at May 31, 2017 631,966 38.24 NES vested and expect to vest at May 31, 2017 631,966 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | Significant components of provision for income taxes for the years ended May 31, 2015, 2016 and 2017 were as follows: Years ended May 31, 2015 2016 2017 US$ US$ US$ Current: PRC 31,552 39,467 51,142 Deferred: PRC (5,331 ) (1,936 ) (518 ) Total provision for income taxes 26,221 37,531 50,624 |
Components of Group's Deferred Tax Assets and Liabilities | Significant components of the Group’s deferred tax assets and liabilities were as follows: As of May 31, 2016 2017 US$ US$ Deferred tax assets, non-current Allowance doubtful accounts 252 2,017 Accrued expenses 18,427 21,893 Deferred revenue for incentive plan 2,376 233 Net operating loss carry-forward 6,910 8,696 Total deferred tax assets, non-current 27,965 32,839 Less: valuation allowance (3,624 ) (3,981 ) Net, deferred tax assets, non-current 24,341 28,858 Deferred tax liabilities, non-current Acquired of non-current 1,982 2,220 Total deferred tax liabilities, non-current 1,982 2,220 |
Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates | A reconciliation of the effective tax rates from the 25% statutory tax rates was as follows for the years ended May 31, 2015, 2016 and 2017: Years ended May 31, 2015 2016 2017 % % % Statutory tax rate 25.00 25.00 25.00 Effect of expenses not deductible for tax purposes 4.91 4.57 2.03 Effect of tax holiday (20.82 ) (18.05 ) (13.41 ) Changes in valuation allowance (0.59 ) 0.25 0.11 Effect of dividend withholding tax 3.39 2.27 1.58 Total provision for income taxes 11.89 14.04 15.31 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
May 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share for the periods indicated: Years ended May 31, 2015 2016 2017 US$ US$ US$ Numerator used in basic and diluted net income per share: Net income attributable to New Oriental Education &Technology Group Inc. 193,013 224,884 274,457 Net income available for future distribution 193,013 224,884 274,457 Shares (denominator): Weighted average common shares outstanding used in computing basic net income 156,438,606 156,782,439 157,551,320 Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method 863,568 609,247 435,074 Weighted average common shares outstanding used in computing diluted net income per share 157,302,174 157,391,686 157,986,394 Net income per share - Basic 1.23 1.43 1.74 - Diluted 1.23 1.43 1.74 |
Related-Parties Transactions (T
Related-Parties Transactions (Tables) | 12 Months Ended |
May 31, 2017 | |
Balances and Transaction with Related Parties | The Group had the following balances and transaction with related parties: Balances: Amounts due from non-current Notes Relationship 2016 2017 US$ US$ Metropolis Holding China Limited (1) Company controlled by 1,741 1,064 MaxEn Joint Venture — 684 1,741 1,748 Amounts due from Amounts due to Notes Relationship 2016 2017 2016 2017 US$ US$ US$ US$ Metropolis Holding China Limited (1) Company controlled by 637 1,895 — — MaxEn Joint Venture 812 — 13 12 Beijing Haiwei Career Services Co., Ltd (“Haiwei Career”) (2) Joint Venture 1,553 3,965 — — Dianshijingwei (3) Long-term investee 1,520 — — — Others (4) 17 88 29 36 Total 4,539 5,948 42 48 Transactions: Rental expense 2015 2016 2017 US$ US$ US$ Metropolis Holding China Limited (1) Company controlled by the 5,298 7,139 6,790 Loan to related parties 2015 2016 2017 US$ US$ US$ Haiwei Career (2) Joint Venture — 1,520 3,965 Beijing Weixuemingri Network Technology Co., Ltd. (“Weixuemingri”) (5) Joint Venture — 998 1,733 Great Thanks Holdings Limited Company established — — 1,450 Total — 2,518 7,148 Revenue 2015 2016 2017 US$ US$ US$ MaxEn Joint Venture — 177 — Beijing Tongban Education & Technology Co., Ltd (“Tongban”) Long-term investee — 3 12 STEMedu.cn Long-term investee — 11 60 Goldern Finance Long-term investee — — 18 Total — 191 90 Transactions: Cost 2015 2016 2017 US$ US$ US$ STEMedu.cn Long-term investee — 30 23 (1) Since April 2010, the Group began renting a large portion of a building owned by Metropolis Holding China Limited for office space. In March 2012, Metropolis Holding China Limited was acquired by a company wholly -owned by Mr. Yu, the Group’s executive chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2017, the current and non-current (2) In October 2014, Haiwei Career became a joint venture of the Group. As a result, Haiwei Career became a related party of the Group. As of May 31, 2017, the amount due from Haiwei Career was US$3,965, which represented loans from the Group to Haiwei Career with non-interest (3) As of May 31, 2016, the amount due from Dianshijingwei represented the non-interest (4) As of May 31, 2017, the balance in “others” included the current receivables from long-term investees of Tongban, Goldern Finance and etc. (5) As of May 31, 2017, the amount due from Weixue Mingri represented the non-interest |
Parent Company [Member] | |
Balances and Transaction with Related Parties | The following represented related party balances as of May 31, 2016 and 2017: May 31, 2016 2017 US$ US$ Amount due from related parties: Winner Park 12 12 Abundant State Limited — 40,000 Elite Concept Holdings Limited 9,897 10,104 Koolearn Holdings Limited 180 180 New Oriental China 6,669 6,669 16,758 56,965 Amount due to related parties: Elite Concept Holdings Limited 357 357 Abundant State Limited 81,798 81,798 Smart Shine 1,487 1,487 83,642 83,642 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
May 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Non-Cancelable Operating Leases | The Group leases offices, classroom and warehouse facilities under operating leases. The terms of substantially all of these leases are ten years or less. Future minimum lease payments under non-cancelable US$ Years ended May 31: 2018 204,996 2019 185,059 2020 157,333 2021 123,894 2022 83,329 Thereafter 88,611 843,222 |
Future Minimum Capital Commitments under Non-Cancelable Construction and Investments | As of May 31, 2017, future minimum capital commitments under non-cancelable US$ Capital commitment for the purchase of property and equipment 3,359 Capital commitment for leasehold improvements 16,338 Capital commitment for investments 10,064 29,761 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
May 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Summary of Changes in Noncontrolling Interest | Koolearn Corporation Xuncheng New Jinzhou School Dongfangyoubo Ainuoshida Total US$ US$ US$ US$ US$ US$ US$ Balance as of May 31, 2015 3,458 — 38 — — — 3,496 Capital injection from noncontrolling interests shareholders — 28,737 — 182 — — 28,919 Capital repurchase from noncontrolling interests shareholders (3,497 ) — — — — — (3,497 ) Unrealized gain on available-for-sale — 999 — — — — 999 Foreign currency translation adjustment attributed to noncontrolling interest shareholders — (269 ) (2 ) — — — (271 ) Net income (loss) attributed to noncontrolling interests shareholders 39 423 3 (21 ) — — 444 Balance as of May 31, 2016 — 29,890 39 161 — — 30,090 Capital injections from noncontrolling interests shareholders — 3,348 — — 576 — 3,924 Addition of noncontrolling interests in connection with acquisition — — — — — 3,909 3,909 Unrealized gain on available-for-sale — (23 ) — — — — (23 ) Foreign currency translation adjustment attributed to noncontrolling interests shareholders — (1,118 ) (2 ) (4 ) 2 13 (1,109 ) Net income (loss) attributed to noncontrolling interests shareholders — 4,454 (1 ) (176 ) (254 ) (1,684 ) 2,339 Balance as of May 31, 2017 — 36,551 36 (19 ) 324 2,238 39,130 |
Schedule of Effects of Changes in Ownership Interest on Equity | The schedule below discloses the effects of changes in the Company’s ownership interest on the Company’s equity: Year Ended May 31, 2016 2017 US$ US$ Net income attribute to New Oriental Education & Technology Group Inc. 224,884 274,457 Increase in the Group’s additional paid-in — 138 Increase in the Group’s additional paid-in 39,579 4,733 Decrease in the Group’s additional paid-in — (5,412 ) Increase in the Group’s additional paid-in 5,704 Changes from net income attributable to New Oriental Education & Technology Group Inc. shareholders and transfers from/to noncontrolling interests 264,463 279,620 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
May 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The Group’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, operating costs and expenses, and operating income. Net revenues, operating costs and expenses, operating income, and total assets by segment were as follows: For the year ended May 31, 2015 Language Primary and training and test secondary preparation courses education Others Consolidated US$ US$ US$ US$ Net revenues 1,040,380 26,735 179,651 1,246,766 Operating costs and expenses: Cost of revenues (442,994 ) (9,083 ) (74,243 ) (526,320 ) Selling and marketing (122,697 ) (1,039 ) (42,540 ) (166,276 ) General and administrative (245,315 ) (10,068 ) (49,387 ) (304,770 ) Unallocated corporate expenses — — — (95,871 ) Total operating costs and expenses (811,006 ) (20,190 ) (166,170 ) (1,093,237 ) Operating income 229,374 6,545 13,481 153,529 Segment assets 937,020 75,046 299,442 1,311,508 Unallocated corporate assets — — — 640,029 Total assets 937,020 75,046 299,442 1,951,537 For the year ended May 31, 2016 Language Primary and training and test secondary preparation courses education Others Consolidated US$ US$ US$ US$ Net revenues 1,238,572 30,011 209,765 1,478,348 Operating costs and expenses: Cost of revenues (516,370 ) (9,812 ) (88,182 ) (614,364 ) Selling and marketing (125,815 ) (744 ) (48,255 ) (174,814 ) General and administrative (296,686 ) (12,558 ) (55,937 ) (365,181 ) Unallocated corporate expenses — — — (128,912 ) Total operating costs and expenses (938,871 ) (23,114 ) (192,374 ) (1,283,271 ) Gain on disposal of subsidiaries — — 3,760 3,760 Operating income 299,701 6,897 21,151 198,837 Segment assets 1,120,580 78,556 411,744 1,610,880 Unallocated corporate assets — — — 743,954 Total assets 1,120,580 78,556 411,744 2,354,834 For the year ended May 31, 2017 Language Primary and training and test secondary preparation courses education Others Consolidated US$ US$ US$ US$ Net revenues 1,510,497 30,782 258,230 1,799,509 Operating costs and expenses: Cost of revenues (623,364 ) (10,465 ) (115,757 ) (749,586 ) Selling and marketing (146,544 ) (1,347 ) (60,572 ) (208,463 ) General and administrative (363,949 ) (11,317 ) (63,406 ) (438,672 ) Unallocated corporate expenses — — — (140,639 ) Total operating costs and expenses (1,133,857 ) (23,129 ) (239,735 ) (1,537,360 ) Operating income 376,640 7,653 18,495 262,149 Segment assets 1,361,261 79,655 527,300 1,968,216 Unallocated corporate assets — — — 956,763 Total assets 1,361,261 79,655 527,300 2,924,979 |
Schedule I - Condensed Financ56
Schedule I - Condensed Financial Information of Parent Company (Tables) - Parent Company [Member] | 12 Months Ended |
May 31, 2017 | |
Condensed Financial Information of Parent Company - Balance Sheets | Condensed Financial Information of Parent Company Balance Sheets (In thousands, except share and share data) As of May 31, 2016 2017 US$ US$ ASSETS Current assets: Cash and cash equivalents 11,984 11,472 Term deposit 10,000 10,000 Prepaid expense and other current assets 5,900 210 Amounts due from related parties 16,758 — Total current assets 44,642 21,682 Amounts due from related parties — 56,965 Long-term investments 96,498 120,260 Investments in subsidiaries and VIEs 1,353,090 1,569,358 Total assets 1,494,230 1,768,265 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other current liabilities 6,016 3,675 Amounts due to related parties 83,642 83,642 Total current liabilities 89,658 87,317 Equity: Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2016 and 2017; 158,379,387 shares issued as of May 31, 2016 and 2017; 157,439,397 and 157,687,444 shares outstanding as of May 31, 2016 and 2017, respectively) 1,584 1,584 Treasury stock (9 ) (7 ) Additional paid-in 223,422 249,126 Retained earnings 1,116,627 1,391,084 Accumulated other comprehensive income 62,948 39,161 Total shareholders’ equity 1,404,572 1,680,948 Total liabilities and equity 1,494,230 1,768,265 |
Condensed Financial Information of Parent Company - Statements of Operations | Condensed Financial Information of Parent Company Statements of Operations (In thousands) Years ended May 31, 2015 2016 2017 US$ US$ US$ Operating costs and expenses: General and administrative 12,963 16,732 18,236 Total operating costs and expenses 12,963 16,732 18,236 Operating loss (12,963 ) (16,732 ) (18,236 ) Interest income 2 1 122 Equity in earnings of subsidiaries and VIEs 205,974 241,615 292,571 Net income 193,013 224,884 274,457 |
Condensed Financial Information of Parent Company - Statements of Comprehensive Income | Condensed Financial Information of Parent Company Statements of Comprehensive Income (In thousands) Years ended May 31, 2015 2016 2017 US$ US$ US$ Net income 193,013 224,884 274,457 Other comprehensive income, net of tax Foreign currency translation adjustment 12,006 (72,193 ) (46,331 ) Unrealized gain on available-for-sale 21,940 35,636 22,544 Other comprehensive income/ (loss) 33,946 (36,557 ) (23,787 ) Comprehensive income attributable to New Oriental Education & Technology Group Inc. 226,959 188,327 250,670 |
Condensed Financial Information of Parent Company - Statements of Changes in Equity | Condensed Financial Information of Parent Company Statements of Changes in Equity (In thousands, except share data) Common shares Additional paid-in Treasury Retained Accumulated Total Unrestricted shares Amount US$ US$ US$ US$ US$ US$ Balance at June 1, 2014 157,758,666 1,584 174,009 (6 ) 784,612 65,559 1,025,758 Reissuance of Treasury stock for the exercises of employee share options 953,514 — 11,353 9 — — 11,362 Reissuance of Treasury stock for Non-vested 575,432 — (6 ) 6 — — — Share based compensation expense — — 15,689 — — — 15,689 Share repurchase (2,800,849 ) — (59,392 ) (28 ) — — (59,420 ) Net income — — — — 193,013 — 193,013 Foreign currency translation adjustment — — — — — 12,006 12,006 Unrealized gain on available-for-sale — — — — — 21,940 21,940 Balance at May 31, 2015 156,486,763 1,584 141,653 (19 ) 977,625 99,505 1,220,348 Reissuance of Treasury stock for the exercises of employee share options 240,304 — 2,428 3 — — 2,431 Reissuance of Treasury stock for Non-vested 712,330 — (7 ) 7 — — — Share based compensation expense — — 16,810 — — — 16,810 Dividend declared — — — — (62,668 ) — (62,668 ) Net income — — — — 224,884 — 224,884 Capital injection of noncontrolling interests — — 39,579 — — — 39,579 Repurchase share from noncontrolling interest — — (255 ) — — — (255 ) Equity restructure of Xuncheng — — 23,214 — (23,214 ) — — Foreign currency translation adjustment — — — — — (72,193 ) (72,193 ) Unrealized gain on available-for-sale — — — — — 35,636 35,636 Balance at May 31, 2016 157,439,397 1,584 223,422 (9 ) 1,116,627 62,948 1,404,572 Reissuance of Treasury stock for the exercises of employee share options 48,047 — 256 — — — 256 Reissuance of Treasury stock for Non-vested 200,000 — (2 ) 2 — — — Share based compensation expense — — 20,287 — — — 20,287 Net income — — — — 274,457 — 274,457 Capital injection of noncontrolling interests — — 4,871 — — — 4,871 NCI transactions in Xuncheng — — 74 — — — 74 Capital injection in Taiyanggong Kindergarten — — 218 — — — 218 Foreign currency translation adjustment — — — — — (46,331 ) (46,331 ) Unrealized gain on available-for-sale — — — — — 22,544 22,544 Balance at May 31, 2017 157,687,444 1,584 249,126 (7 ) 1,391,084 39,161 1,680,948 |
Condensed Financial Information of Parent Company - Statements of Cash Flows | Condensed Financial Information of Parent Company Statements of Cash Flows (In thousands) Years ended May 31, 2015 2016 2017 US$ US$ US$ Cash flows from operating activities: Net income 193,013 224,884 274,457 Adjustments to reconcile net income to net cash provided by (used in) operating activities Equity in earnings of subsidiaries (205,974 ) (241,615 ) (292,571 ) Dividend received from subsidiaries — 49,984 43,417 Share-based compensation expense 15,689 16,810 20,287 Changes in operating assets and liabilities: Prepaid expenses and other current assets (2,613 ) 5,135 5,404 Accrued expenses and other current liabilities (2,728 ) (3,673 ) (2,341 ) Amounts due from/to related parties (762 ) (1,446 ) (40,207 ) Net cash (used in) provided by operating activities (3,375 ) 50,079 8,446 Cash flows from investing activities Investments in term deposits — (10,000 ) — Payment for available-for-sale (10,300 ) (9,500 ) (1,000 ) Proceed from investment withdrawn in Dajie.com — 540 — Loan to related parties (6,423 ) 1,487 — Investment in a subsidiary — — (8,500 ) Repayment from related parties — 8,512 — Net cash used in investing activities (16,723 ) (8,961 ) (9,500 ) Cash flows from financing activities: Proceeds from issuance of common shares upon exercise of share options 11,332 2,176 542 Loan from a related party 75,060 8,610 — Cash paid for shares repurchase (59,420 ) — — Cash paid for dividend — (62,668 ) — Net cash provided by (used in) financing activities 26,972 (51,882 ) 542 Net increase / (decrease) in cash and cash equivalents 6,874 (10,764 ) (512 ) Cash and cash equivalents, beginning of year 15,874 22,748 11,984 Cash and cash equivalents, end of year 22,748 11,984 11,472 |
Organization and Principal Ac57
Organization and Principal Activities - Details of Company's Subsidiaries and VIE and Its Subsidiaries (Detail) | 12 Months Ended | |
May 31, 2017 | ||
Variable interest entities (VIEs) [Member] | New Oriental Education & Technology Group Co., Ltd [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 2, 2001 | |
Place of incorporation (or establishment)/ operation | PRC | |
Subsidiaries [Member] | Beijing Decision Education & Consulting Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 20, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Judgment Education & Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 20, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Hewstone Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 20, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Pioneer Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 8, 2009 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Shanghai Smart Words Software Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 8, 2010 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Smart Wood Software Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 21, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Joy Tend Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 31, 2013 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Right Time Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 31, 2013 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Sincerity Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 12, 2013 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Magnificence Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 1, 2013 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Top Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 13, 2013 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Shenghe Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 27, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Jinghong Software Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 18, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing New Oriental Walkite International Travel Co.,Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 22, 2012 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Walkite International Academy Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 16, 2015 | |
Place of incorporation (or establishment)/ operation | U.K. | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing New Road Information Consulting Services Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 6, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 51.00% | |
Subsidiaries [Member] | Walkite International Academy (U.S.A.) Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 13, 2015 | |
Place of incorporation (or establishment)/ operation | U.S.A. | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Elite Concept Holdings Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 3, 2007 | |
Place of incorporation (or establishment)/ operation | Hong Kong | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Winner Park Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 9, 2008 | |
Place of incorporation (or establishment)/ operation | Hong Kong | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Smart Shine International Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 9, 2008 | |
Place of incorporation (or establishment)/ operation | Hong Kong | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Abundant State Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 20, 2013 | |
Place of incorporation (or establishment)/ operation | BVI | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Koolearn Holding Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 21, 2013 | |
Place of incorporation (or establishment)/ operation | Hong Kong | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | New Oriental Vision Overseas Consulting Australia Private Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 25, 2017 | |
Place of incorporation (or establishment)/ operation | Australia | |
Legal ownership | 100.00% | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Haidian District Privately-Funded New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 5, 1993 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shanghai Yangpu District New Oriental Advanced Study School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 1, 2000 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Guangzhou Haizhu District Privately-Funded New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 8, 2000 | [1] |
Place of incorporation (or establishment)/ operation | PRC | [1] |
Schools and Subsidiaries of New Oriental China [Member] | Guangzhou New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 20, 2013 | [1] |
Place of incorporation (or establishment)/ operation | PRC | [1] |
Schools and Subsidiaries of New Oriental China [Member] | Guangzhou Panyu District Privately-Funded New Oriental Training Centre [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 19, 2013 | [1] |
Place of incorporation (or establishment)/ operation | PRC | [1] |
Schools and Subsidiaries of New Oriental China [Member] | Wuhan New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 28, 2002 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Tianjin New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 21, 2002 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Xi'an Yanta District New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 26, 2002 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Nanjing Gulou New Oriental Advanced Study School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 28, 2002 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shenzhen New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 15, 2003 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shenyang New Oriental Foreign Language Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 18, 2003 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Chongqing New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 15, 2003 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Chengdu New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 18, 2003 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Xiangyang New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 26, 2004 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Changsha Furong District New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 25, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Jinan New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 31, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Taiyuan New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 20, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Ha'er Bin Nangang District Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 20, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Changchun New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 26, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Hangzhou New Oriental Advanced Study School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 21, 2005 | [2] |
Place of incorporation (or establishment)/ operation | PRC | [2] |
Schools and Subsidiaries of New Oriental China [Member] | Hangzhou New Oriental Education And Consulting Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 8, 2012 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Fuyang New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 22, 2012 | [2] |
Place of incorporation (or establishment)/ operation | PRC | [2] |
Schools and Subsidiaries of New Oriental China [Member] | Zhengzhou New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 19, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Zhuzhou New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 30, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shijiazhuang New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 3, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Suzhou New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 26, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Anshan New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 13, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Hefei New Oriental Foreign Language Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 13, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Yunnan New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 13, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Wuxi New Oriental Advanced Study School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 14, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Fuzhou Gulou District New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 1, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Nanchang Donghu District New Oriental Language School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 16, 2007 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Yichang Xiling District New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 1, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Jingzhou New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 10, 2007 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Dalian New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 12, 2007 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Huangshi New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 17, 2008 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Ningbo New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 16, 2008 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Lanzhou Chengguan District New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 19, 2008 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Xiamen Siming District New Oriental Education Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 8, 2008 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Qingdao New Oriental Language Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 5, 2008 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Nanning New Oriental Education Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 18, 2008 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Xuzhou New Oriental Advanced Study School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 31, 2009 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Xiangtan Yuhu District New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 15, 2010 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Zhenjiang New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 19, 2010 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Luoyang New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 25, 2010 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Nantong Chongchuan District New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 28, 2010 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Jilin Chuanying District New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 17, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Guiyang Yunyan District New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 21, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Inner Mongolia Hohhot New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 2, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Foshan New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 1, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Tangshan Lubei District New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 25, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Urumqi New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 22, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shiyan New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 23, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Quanzhou Fengze District New Oriental Education Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 26, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Wenzhou New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 14, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Weifang New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 10, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shanghai New Oriental Education And Training Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 15, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Zhuhai Xiangzhou District New Oriental Training Centre [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 11, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Yangzhou Guangling District New Oriental Training Centre [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 24, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Jinzhou New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 19, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Baoding Jingxiu District New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 8, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Taian New Oriental School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 9, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Chongqing Yongchuan District New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 25, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Yantai Zhifu District New Oriental Foreign Language Training School[Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 11, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Kaifeng New Oriental Education Information Consulting Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 31, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Shengdeweixin Education and Technology Company Limited[Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 22, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Cangzhou Yunhe District New Oriental Education Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 29, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Qinghuangdao Haigang District New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 17, 2017 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Zhangzhou Development Zone New Oriental Education Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 22, 2017 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Anyang Beiguan District New Oriental Education Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 16, 2017 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Nanyang New Oriental Education Training Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 19, 2017 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Handan Congtai District New Oriental Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 27, 2017 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Shuangshi Oriental Education and Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 27, 2017 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Changchun Tongwen Gaokao Training School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 27, 2008 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Changchun Tongwen High School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 27, 2008 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | China Management Software Institute [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 1, 2012 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing New Oriental Yangzhou Foreign Language School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 6, 2002 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Yangzhou Guangling District New Oriental Kindergarten Of Stars [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 26, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Changping New Oriental Foreign Language School [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 19, 2010 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing New Oriental Dogwood Cultural Communications Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 16, 2003 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing New Oriental Dogwood, Bookstore, Audio and Video Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 2, 2004 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Chengdu New Oriental Dogwood Bookstore Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 18, 2004 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Chongqing New Oriental Dogwood Bookstore And Audio-Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Feb. 25, 2004 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Guangzhou Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 11, 2003 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Wuhan New Oriental Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 16, 2003 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Xi'an New Oriental Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 3, 2003 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shanghai New Oriental Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 28, 2003 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Changchun New Oriental Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 8, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Ha'er Bin New Oriental Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 13, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Taiyuan New Oriental Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 12, 2006 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Hangzhou Dogwood Bookstore Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 25, 2007 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Nanchang Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 14, 2007 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Kunming Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 21, 2007 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Dalian New Oriental Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 25, 2008 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Lanzhou New Oriental Dogwood Bookstore and Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 28, 2008 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Suzhou New Oriental Dogwood Bookstore And Audio-Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 1, 2010 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Xuzhou New Oriental Dogwood Bookstore And Audio-Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 29, 2010 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Urumqi Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 13, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Hohhot Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Feb. 7, 2012 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Zhuhai New Oriental Dogwood Bookstore and Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 28, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing New Oriental Vision Overseas Consultancy Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Feb. 19, 2004 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shanghai Vision Overseas Service Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 24, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shandong New Oriental Vision Overseas Consulting Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 8, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shanxi New Oriental Vision Overseas Consultancy Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 22, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Fujian New Oriental Vision Overseas Consultancy Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 13, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Guangdong Vision Overseas Consultancy Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 29, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Xinjiang New Oriental Vision Overseas Consultancy Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 9, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Shaanxi New Oriental Vision Overseas Consultancy Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 23, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Tianjin New Oriental Vision Overseas Consultancy Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 13, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Inner Mongolia New Oriental Vision Overseas Consultancy Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 29, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Liaoning New Oriental Vision Overseas Consultancy Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 10, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | New Oriental Vision Overseas Consulting Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 10, 2015 | |
Place of incorporation (or establishment)/ operation | U.K. | |
Schools and Subsidiaries of New Oriental China [Member] | Gansu New Oriental Vision Overseas Consultancy Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | May 15, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Qingdao New Oriental Vision Overseas Consultancy Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 20, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Hunan New Oriental Vision Overseas Consultancy Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 3, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing New Oriental Vision Overseas Service Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Feb. 24, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Ainuoshida Education and Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 24, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing New Oriental Dogwood Advertisement Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 20, 2004 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing New Oriental Xuncheng Network Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 11, 2005 | [3] |
Place of incorporation (or establishment)/ operation | PRC | [3] |
Schools and Subsidiaries of New Oriental China [Member] | Beijing New Oriental Kuxuehuisi Network Technology Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Feb. 1, 2013 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing DongFangYouBo Network Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 23, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Leci Internet Technology (Beijing) Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Feb. 11, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Dongfangzhuoyong Investment Management Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 29, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Ningbo Meishan Bonded Port Area Hexin Oriental Asset Management Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 28, 2017 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing New Oriental MEGAWAY Education & Consulting Co., Ltd. [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Mar. 4, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Aixuehuisi Education and Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 6, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Fishpond Software Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 24, 2015 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Bright the Future Education & Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 18, 2016 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing New Oriental Stars Education & Consulting Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 11, 2007 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Chao Yang District Kindergarten of Stars [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 20, 2007 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Nanjing Yuhuatai District New Oriental Kindergarten of Stars [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Apr. 10, 2009 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Qingdao Alice Education & Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Aug. 21, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Qingdao Laoshan District Happy Alice Kindergarten [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 4, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Qingdao Happy Alice Kindergarten [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 29, 2005 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Qingdao Chengyang District Happy Alice Kindergarten [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Oct. 30, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Beijing Chao Yang District Taiyanggong Kindergarten of Stars [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jan. 20, 2017 | |
Place of incorporation (or establishment)/ operation | PRC | |
[1] | Guangzhou School and Guangzhou Panyu School were established in the year ended May 31, 2014. Although they are separate legal entities, from the perspective of the Group's internal management, they together with Guangzhou Haizhu School are considered as one school since they are operated by the same local management in Guangzhou. | |
[2] | Although the Fuyang School is a separate legal entity, from the perspective of the Group's internal management, Fuyang School and Hangzhou School are considered as one school since they are operated by the same local management in Hangzhou. | |
[3] | The contractual agreements between Xuncheng, New Oriental China and Chongshengdongfang were terminated in September 2015. |
Organization and Principal Ac58
Organization and Principal Activities - Additional Information (Detail) - Agreement | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Product Information [Line Items] | |||
Renewal of trade mark registration | 10 years | ||
Exclusive service agreement renewal term | 10 years | ||
Notice period of agreement termination | 30 days | ||
Number of new equity pledged agreements | 5 | ||
Century Friendship [Member] | Previously Held Equity Interest [Member] | |||
Product Information [Line Items] | |||
Equity interest of Century Friendship prior to the transfer | 53.00% | ||
Minimum [Member] | |||
Product Information [Line Items] | |||
Operating services fee percentage from revenue | 2.00% | ||
Maximum [Member] | |||
Product Information [Line Items] | |||
Operating services fee percentage from revenue | 6.00% | ||
Variable interest entities (VIEs) [Member] | |||
Product Information [Line Items] | |||
Shareholding percentage of Mr. Yu | 13.50% | ||
Credit Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 98.80% | 97.70% | 97.90% |
Credit Concentration Risk [Member] | Assets, Total [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 71.10% | 69.80% | |
Credit Concentration Risk [Member] | Liabilities, Total [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 94.60% | 93.70% |
Organization and Principal Ac59
Organization and Principal Activities - Balances and Amounts of Company's WFOEs and VIEs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Variable Interest Entities [Line Items] | |||
Total current assets | $ 2,326,262 | $ 1,869,336 | |
Total assets | 2,924,979 | 2,354,834 | $ 1,951,537 |
Total current liabilities | 1,202,681 | 918,190 | |
Total liabilities | 1,204,901 | 920,172 | |
Net revenues | 1,799,509 | 1,478,348 | 1,246,766 |
Net income | 274,457 | 224,884 | 193,013 |
Net cash provided by operating activities | 618,137 | 517,894 | 374,145 |
Net cash used in investing activities | (672,264) | (309,737) | (173,417) |
Net cash provided by financing activities | 9,349 | 5,503 | (44,297) |
Variable interest entities (VIEs) [Member] | |||
Variable Interest Entities [Line Items] | |||
Total current assets | 1,590,750 | 1,262,811 | |
Total non-current assets | 488,709 | 381,262 | |
Total assets | 2,079,459 | 1,644,073 | |
Total current liabilities | 1,137,288 | 860,877 | |
Total non-current liabilities | 2,174 | 1,432 | |
Total liabilities | 1,139,462 | 862,309 | |
Net revenues | 1,777,864 | 1,443,851 | 1,221,101 |
Net income | 333,456 | 313,828 | 265,485 |
Net cash provided by operating activities | 450,196 | 450,848 | 357,893 |
Net cash used in investing activities | (459,532) | (286,235) | $ (167,847) |
Net cash provided by financing activities | $ 8,807 | $ 69,747 |
Significant Accounting Polici60
Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Receivables [Abstract] | ||
Beginning balance | $ 408 | $ 801 |
Charge during the year | 354 | 235 |
Written-off | (177) | (628) |
Ending balance | $ 585 | $ 408 |
Significant Accounting Polici61
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Significant Of Accounting Policies [Line Items] | |||
Impairment loss on long-lived assets | $ 0 | $ 0 | $ 0 |
Impairment loss on goodwill | 1,682,000 | 0 | 0 |
Impairment losses | $ 0 | 0 | 2,000 |
Percentage of ownership interest in voting stock considered to exist significant influence over investee company | 50.00% | ||
Impairment losses on Equity Method Investment | $ 0 | 0 | 0 |
Impairment losses on available-for-sale investments | 2,338,000 | 0 | 0 |
Business tax | 0 | 52,993,000 | 45,664,000 |
Total advertising expenses | 41,498,000 | 39,753,000 | 38,295,000 |
Government subsidies received | 1,325,000 | 494,000 | 1,230,000 |
Aggregate amounts denominated in RMB | 762,895,000 | 747,762,000 | |
Amount transfer from level 1 to level 2 | 0 | 0 | |
Amount transfer from level 2 to level 1 | 0 | 0 | |
Impairment loss on Other Intangible Assets | $ 0 | 0 | $ 0 |
Minimum [Member] | |||
Significant Of Accounting Policies [Line Items] | |||
Percentage of ownership interest in voting stock considered to exist significant influence over investee company | 20.00% | ||
Maximum [Member] | |||
Significant Of Accounting Policies [Line Items] | |||
Percentage of ownership interest in voting stock considered to exist significant influence over investee company | 50.00% | ||
Available-for-Sale Investments [Member] | |||
Significant Of Accounting Policies [Line Items] | |||
Transfer from level 2 fair value measurements | $ 31,505,000 | $ 63,881,000 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Significant Of Accounting Policies [Line Items] | |||
Concentration risk | 10.00% | 10.00% | 10.00% |
Credit Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Significant Of Accounting Policies [Line Items] | |||
Concentration risk | 98.80% | 97.70% | 97.90% |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||
Significant Of Accounting Policies [Line Items] | |||
Concentration risk | 10.00% | 10.00% | 10.00% |
Land use rights [Member] | Minimum [Member] | |||
Significant Of Accounting Policies [Line Items] | |||
Estimated useful lives | 38 years 6 months | ||
Land use rights [Member] | Maximum [Member] | |||
Significant Of Accounting Policies [Line Items] | |||
Estimated useful lives | 50 years |
Significant Accounting Polici62
Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
May 31, 2017 | |
Transportation equipment [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | 10 years |
Furniture and education equipment [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | 5 years |
Computer equipment and software [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | 3 years |
Leasehold Improvements [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | Shorter of the lease term or estimated economic life |
Minimum [Member] | Buildings [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | 20 years |
Maximum [Member] | Buildings [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | 50 years |
Significant Accounting Polici63
Significant Accounting Policies - Schedule of Available-for-Sale Securities Included in Long Term Investments Measured and Recorded at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | $ 197,590 | $ 163,804 |
Common Shares [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 36,406 | 15,945 |
Redeemable Preferred Shares [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 153,698 | 112,136 |
Convertible Bond [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 12,310 | |
Asset Management Plan and Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 7,486 | 23,413 |
Quoted Prices in Active Market for Identical Assets Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 36,406 | 15,945 |
Quoted Prices in Active Market for Identical Assets Level 1 [Member] | Common Shares [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 36,406 | 15,945 |
Significant Other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 38,155 | 77,986 |
Significant Other Observable Inputs Level 2 [Member] | Redeemable Preferred Shares [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 30,669 | 42,263 |
Significant Other Observable Inputs Level 2 [Member] | Convertible Bond [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 12,310 | |
Significant Other Observable Inputs Level 2 [Member] | Asset Management Plan and Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 7,486 | 23,413 |
Significant Other Observable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 123,029 | 69,873 |
Significant Other Observable Inputs Level 3 [Member] | Redeemable Preferred Shares [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | $ 123,029 | $ 69,873 |
Significant Accounting Polici64
Significant Accounting Policies - Reconciliation of The Fair Value Measurements of Assets And Liabilities Using Significant Unobservable Inputs (level 3) (Detail) - Available-for-Sale Investments [Member] - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 69,873 | |
Transfer from level 2 fair value measurements | 31,505 | $ 63,881 |
Initial recognition | 2,844 | |
Unrealized gain | 21,651 | 3,148 |
Ending balance | $ 123,029 | $ 69,873 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 01, 2014 | Mar. 31, 2015 | May 31, 2017 | Dec. 01, 2016 |
Qingdao Alice [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, date | Dec. 1, 2014 | |||
Business acquisition, equity interest | 100.00% | |||
Business acquisition, total consideration | $ 12,929 | |||
Ainuoshida [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, date | Mar. 31, 2015 | |||
Business acquisition, equity interest | 18.00% | 51.00% | 33.00% | |
Business acquisition, total consideration | $ 3,842 | |||
Cash consideration | $ 1,129 | |||
Gain recognized on investment | $ 723 |
Business Acquisitions - Purchas
Business Acquisitions - Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Dec. 01, 2016 | Dec. 01, 2014 | May 31, 2017 | May 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 14,083 | $ 10,545 | ||
Qingdao Alice [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 2,306 | |||
Other current assets | 644 | |||
Property, plant and equipment | 89 | |||
Goodwill | 7,540 | |||
Other current liabilities | (514) | |||
Deferred tax liabilities | (955) | |||
Total | 12,929 | |||
Qingdao Alice [Member] | Trademark [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 1,058 | |||
Amortization period | 10 years 1 month 6 days | |||
Qingdao Alice [Member] | Student base [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 1,998 | |||
Amortization period | 2 years 2 months 12 days | |||
Qingdao Alice [Member] | Favorable lease [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 763 | |||
Amortization period | 8 years 8 months 12 days | |||
Qingdao Alice [Member] | Property, Plant and Equipment [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 1 year | |||
Qingdao Alice [Member] | Property, Plant and Equipment [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 5 years | |||
Ainuoshida [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 2,499 | |||
Other current assets | 4,874 | |||
Property, plant and equipment | 493 | |||
Goodwill | 5,516 | |||
Other current liabilities | (6,040) | |||
Deferred tax liabilities | (713) | |||
Fair value of the 18% equity interest | (1,741) | |||
Noncontrolling interests | (3,899) | |||
Total | 3,842 | |||
Ainuoshida [Member] | Trademark [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 1,708 | |||
Amortization period | 10 years | |||
Ainuoshida [Member] | Student base [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 1,069 | |||
Amortization period | 1 year | |||
Ainuoshida [Member] | Software [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 76 | |||
Amortization period | 3 years | |||
Ainuoshida [Member] | Property, Plant and Equipment [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 1 year | |||
Ainuoshida [Member] | Property, Plant and Equipment [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 5 years |
Business Acquisitions - Purch67
Business Acquisitions - Purchase Price Allocation (Parenthetical) (Detail) | May 31, 2017 | Dec. 01, 2016 | Mar. 31, 2015 |
Ainuoshida [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, equity interest | 51.00% | 33.00% | 18.00% |
Disposal of Subsidiaries - Addi
Disposal of Subsidiaries - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2016 | May 31, 2016 | May 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on disposal of subsidiaries | $ 3,760 | ||
Equity ownership interest | 50.00% | ||
Beijing Dianshijingwei Technology Co.,Ltd [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of equity interest sold | 51.00% | ||
Cash consideration | $ 2,325 | ||
Gain on disposal of subsidiaries | $ 3,760 | ||
Equity ownership interest | 49.00% |
Short-Term Investments - Summar
Short-Term Investments - Summary of Short-Term Investments (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Short-term Investments [Abstract] | ||
Held-to-maturity investments | $ 1,312,942 | $ 819,229 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Short-term Investments [Abstract] | |||
Held-to-maturity investments for OTTI recognized | $ 0 | $ 0 | $ 0 |
Minimum [Member] | |||
Short-term Investments [Abstract] | |||
Short-term investments stated interest rate | 2.60% | ||
Maximum [Member] | |||
Short-term Investments [Abstract] | |||
Short-term investments stated interest rate | 5.00% |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Inventory Disclosure [Abstract] | ||
Course materials in schools | $ 7,419 | $ 5,787 |
Publications in bookstores | 24,323 | 21,516 |
Inventory | $ 31,742 | $ 27,303 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Inventory Disclosure [Abstract] | ||
Inventory marked down value | $ 152 | $ 638 |
Prepaid Expenses and Other Cu73
Prepaid Expenses and Other Current Assets - Components of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 | |
Prepaid Expenses And Other Current Assets [Abstract] | |||
Prepaid rent | $ 44,746 | $ 33,135 | |
Advances to suppliers | 29,358 | 23,143 | |
Interest receivable | 14,005 | 9,341 | |
Rental deposit | 8,355 | 7,122 | |
Receivable from BOCI for the proceeds of exercise of options and withholding tax | 5,548 | ||
Prepaid advertising fees | 4,235 | 3,250 | |
Staff advances | [1] | 2,514 | 2,829 |
Value added taxes recoverable | 2,305 | 2,534 | |
Deposit of advertising & decoration | 1,411 | 1,961 | |
Receivable of social insurance | 1,651 | 1,374 | |
Prepaid property taxes and other taxes | 947 | 616 | |
Others | [2] | 9,870 | 8,824 |
Prepaid expenses and other current assets | $ 119,397 | $ 99,677 | |
[1] | Staff advances were provided to staff for traveling and related use which are expensed as incurred and staff allowance for on-site enrollment activities. | ||
[2] | Others primarily included maintenance fees, other receivables and other miscellaneous prepayments. |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 503,999 | $ 441,508 |
Less: accumulated depreciation | (235,853) | (209,937) |
Construction in-process | 14,654 | 6,127 |
Property and equipment, Net | 282,800 | 237,698 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 141,477 | 146,411 |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,618 | 8,553 |
Furniture and education equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 88,671 | 76,492 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 48,385 | 40,707 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 216,848 | $ 169,345 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 53,864 | $ 47,281 | $ 46,663 |
Land Use Rights, Net - Land Use
Land Use Rights, Net - Land Use Rights, Net (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Real Estate [Abstract] | ||
Land use rights | $ 5,003 | $ 5,178 |
Less: accumulated amortization | (1,307) | (1,201) |
Exchange differences | (28) | (71) |
Land use rights, net | $ 3,668 | $ 3,906 |
Land Use Rights, Net - Addition
Land Use Rights, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Land Use Rights [Line Items] | |||
Amortization expenses of land use rights | $ 106 | $ 112 | $ 116 |
Future amortization expense next twelve months | 963 | ||
Future amortization expense year two | 400 | ||
Future amortization expense year three | 380 | ||
Future amortization expense year four | 368 | ||
Future amortization expense year five | 368 | ||
Future amortization expense thereafter | 1,526 | ||
Land use rights [Member] | |||
Land Use Rights [Line Items] | |||
Future amortization expense next twelve months | 106 | ||
Future amortization expense year two | 106 | ||
Future amortization expense year three | 106 | ||
Future amortization expense year four | 106 | ||
Future amortization expense year five | 106 | ||
Future amortization expense thereafter | $ 3,138 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Intangible assets with indefinite lives: | ||
Intangible assets with indefinite lives, Gross | $ 241 | $ 248 |
Intangible assets with finite lives: | ||
Intangible assets, gross | 7,438 | 4,694 |
Accumulated amortization: | ||
Accumulated amortization | (3,433) | (2,076) |
Intangible assets with indefinite lives, Net | 241 | 248 |
Intangible assets | 4,005 | 2,618 |
Trademark [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 2,976 | 1,293 |
Accumulated amortization: | ||
Accumulated amortization | (581) | (383) |
Intangible assets with definite lives, Net | 2,395 | 910 |
Courseware [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 122 | 47 |
Accumulated amortization: | ||
Accumulated amortization | (58) | (47) |
Intangible assets with definite lives, Net | 64 | |
Student base [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 2,995 | 1,978 |
Accumulated amortization: | ||
Accumulated amortization | (2,455) | (1,404) |
Intangible assets with definite lives, Net | 540 | 574 |
Favorable lease [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 689 | 713 |
Accumulated amortization: | ||
Accumulated amortization | (199) | (123) |
Intangible assets with definite lives, Net | 490 | 590 |
License [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 415 | 415 |
Accumulated amortization: | ||
Accumulated amortization | (140) | (119) |
Intangible assets with definite lives, Net | $ 275 | $ 296 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expenses | $ 1,419 | $ 1,122 | $ 607 |
Future amortization expense next twelve months | 963 | ||
Future amortization expense year two | 400 | ||
Future amortization expense year three | 380 | ||
Future amortization expense year four | 368 | ||
Future amortization expense year five | 368 | ||
Future amortization expense thereafter | $ 1,526 |
Goodwill, Net - Components of G
Goodwill, Net - Components of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2017 | May 31, 2016 | May 31, 2015 | Dec. 01, 2016 | |
Costs: | ||||
Beginning balance | $ 10,545 | $ 11,194 | ||
Exchange differences | (296) | (649) | ||
Ending balance | 15,765 | 10,545 | $ 11,194 | |
Accumulated goodwill impairment loss: | ||||
Beginning balance | 0 | 0 | ||
Impairment | (1,682) | 0 | 0 | |
Ending balance | (1,682) | 0 | $ 0 | |
Goodwill, net | 14,083 | $ 10,545 | ||
Ainuoshida [Member] | ||||
Costs: | ||||
Acquisition | 5,516 | |||
Accumulated goodwill impairment loss: | ||||
Goodwill, net | $ 5,516 | |||
Tongwen [Member] | ||||
Accumulated goodwill impairment loss: | ||||
Impairment | $ (1,682) |
Goodwill, Net - Additional info
Goodwill, Net - Additional information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Goodwill [Line Items] | |||
Goodwill impairment | $ 1,682 | $ 0 | $ 0 |
Tongwen [Member] | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 1,682 |
Long Term Investments - Schedul
Long Term Investments - Schedule of Long Term Investments (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 | Oct. 31, 2015 | Apr. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 05, 2012 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | $ 217,259 | $ 178,863 | |||||||
Cost-method Investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | 8,132 | 1,460 | |||||||
Dongfangheli [Member] | Equity Method Investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [1] | 2,851 | 3,451 | ||||||
Juesheng.com [Member] | Equity Method Investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [2] | 2,881 | 3,249 | ||||||
Kouyu 100 [Member] | Equity Method Investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [3] | 3,436 | 3,261 | ||||||
Golden Finance [Member] | Available for sale securities investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [4] | 44,809 | 34,242 | ||||||
Alo7.com [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | $ 10,000 | $ 300 | $ 2,576 | $ 1,000 | |||||
Alo7.com [Member] | Available for sale securities investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [5] | 17,370 | 29,639 | ||||||
Trust 556 [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | 16,743 | $ 15,654 | |||||||
Trust 556 [Member] | Available for sale securities investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [6] | 16,037 | |||||||
Tarena [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | $ 13,500 | ||||||||
Tarena [Member] | Available for sale securities investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [7] | 25,695 | 15,945 | ||||||
Shangjiachongye [Member] | Available for sale securities investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [8] | 32,644 | 12,310 | ||||||
ROBOROBO [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | $ 4,356 | ||||||||
ROBOROBO [Member] | Available for sale securities investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [9] | 9,999 | |||||||
Beijing Shengtong Printing Co Ltd [Member] | Available for sale securities investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [9] | 10,711 | |||||||
Other investments [Member] | Equity Method Investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [10] | 2,369 | 3,638 | ||||||
Other investments [Member] | Available for sale securities investments [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Long term investments | [10] | $ 66,361 | $ 45,632 | ||||||
[1] | In August 2014, the Group invested US$4,034 to acquire 50% equity interest in Dongfangheli, a company concentrating on investment in educational research and development programs and software consulting services. The Group used the equity method to account for the investment as the Group has the ability to exercise significant influence but does not have control over the investee. | ||||||||
[2] | In August 2014 and May 2015, the Group invested US$3,006 and US$501 respectively in Juesheng.com, a company engaging in providing international educational products search engine service, for 11.9% equity interests. These investments were classified as available-for-sale investment as the Company determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gain of US$3,933 was reported in other comprehensive income for the year ended May 31, 2015. In March 2016, Juesheng.com successfully listed on the National Equities Exchange and Quotations ("NEEQ"). Upon the listing, the Group's preference rights, including its redemption and liquidation preference were terminated and the shares became common shares. As the share conversion is not considered an earnings realization event, all unrealized gains deferred in accumulated other comprehensive income were reversed to the carrying amount of the common shares such that the initial carrying amount of such shares is equal to the original cost basis of the original investment. The Group further accounted for its investment by using equity method as the Group determined that it can exercise significant influence over Juesheng.com. | ||||||||
[3] | In December 2014, the Group invested US$3,472 in Kouyu100, a company applying cutting edge psychoacoustic technology to spoken language training and correcting the pronunciation of a student like a real tutor, for 7% equity interest. The investment was classified as available-for-sale investment as the Company determined that the shares were debt securities due to the redemption option available to the investor and measured subsequently at fair value. Unrealized gain of nil was reported in other comprehensive income for the year ended May 31, 2015. In December 2015, Kouyu100 successfully listed on the NEEQ. Upon the listing, the Group's preference rights, including redemption and liquidation preference were terminated and the shares became common shares. As the share conversion is not considered an earnings realization event, all unrealized gains deferred in accumulated other comprehensive income were reversed to the carrying amount of the common shares such that the initial carrying amount of such shares is equal to the original cost basis of the original investment. The Group further accounted for this investment by using the equity method as the Group determined that it can exercise significant influence over Kouyu100. | ||||||||
[4] | In April and November 2015, the Group invested US$3,398 and US$11,437 respectively in Golden Finance, a company focusing on training programs associated with finance and business management, for 19.5% equity interest. Unrealized holding gains of nil, US$19,407 and US$10,567 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively. | ||||||||
[5] | On March 5, 2012, the Group acquired a convertible promissory from Alo7.com for US$1,000, which entitled the Group to automatically convert the note into equity security. On July 1, 2012, the Group converted the US$1,000 promissory note into convertible redeemable preferred shares and warrants issued by Alo7.com, for 3.4% equity ownership interest in Alo7.com on an as-converted basis. In March, June and September 2014, the Group further invested US$2,576, US$300 and US$10,000 into Alo7.com. As of May 31, 2017, the Company had 17.2% equity interests in Alo7.com. Unrealized holding gains of US$13,428, US$1,704 and loss of US$8,678 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively. | ||||||||
[6] | In October 2015, the Group invested US$15,654 in a two-year trust named Trust 556 with an expected annualized interest rate of 8.5%. The principal and the interest are not guaranteed during the Group's holding period and will be paid upon maturity. The investment was classified as available-for-sale investment as the Group determined that the shares were debt securities and unrealized holding gains of US$383 and US$1,248 were reported in other comprehensive income for the years ended May 31, 2016 and 2017, respectively. As of May 31, 2017, the investment of US$16,743 was reclassified to long term investment due within one year. | ||||||||
[7] | In March 2014, the Group invested US$13,500 in Tarena, which is a service provider of IT professional education in China, for around 3% equity interest. Unrealized holding gain of US$3,495, loss of US$1,005 and gain of US$9,750 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively. | ||||||||
[8] | In January 2016, the Group invested US$12,310 to acquire convertible bond issued by Shangjiachongye, which focuses on online education specific to vocational qualification training. In July 2016, the Group converted all of the convertible bonds into redeemable preferred shares of Shangjiachongye for a 4.9% equity interest. In the meantime, the Group additionally invested US$12,205 into redeemable preferred shares for another 4.9% equity interest. Unrealized holding gains of nil and US$8,129 were reported in other comprehensive income for the years ended May 31, 2016 and 2017, respectively. | ||||||||
[9] | In April 2015, the Group acquired 18% equity interest in ROBOROBO for a cash consideration of US$4,356, a company applying various robots build training courses for kids with different ages. Unrealized holding gains of nil and US$5,643 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively. In February 2017, the Group disposed the shares in ROBOROBO to exchange for shares newly issued by Shengtong which is an A-share listed company in China. Realized gain of US$7,086 was recognized for the year ended May 31, 2017. The equity interest acquired in Shengtong was classified as available-for-sale security and measured at fair value. Unrealized holding gain of US$423 was reported in other comprehensive income for the year ended May 31, 2017. | ||||||||
[10] | As to the other investments, they represent several insignificant investments either classified as equity method investments or available-for-sale investments as of May 31, 2016 and 2017. |
Long Term Investments - Sched83
Long Term Investments - Schedule of Long Term Investments (Parenthetical) (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Nov. 30, 2015 | Oct. 31, 2015 | May 31, 2015 | Apr. 30, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | May 31, 2017 | May 31, 2016 | May 31, 2015 | Jul. 31, 2016 | Jan. 31, 2016 | Sep. 30, 2014 | Aug. 31, 2014 | Jun. 30, 2014 | Jul. 01, 2012 | Mar. 05, 2012 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Equity ownership interest | 50.00% | |||||||||||||||
Long term investments | $ 217,259,000 | $ 178,863,000 | ||||||||||||||
Realized gain from long-term investments | 7,086,000 | |||||||||||||||
Dongfangheli [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Investment for acquiring equity interest | $ 4,034,000 | |||||||||||||||
Equity ownership interest | 50.00% | |||||||||||||||
Juesheng.com [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Investment for acquiring equity interest | $ 501,000 | $ 501,000 | $ 3,006,000 | |||||||||||||
Equity ownership interest classified as available for sale | 11.90% | |||||||||||||||
Unrealized holding gains (loss) | 3,933,000 | |||||||||||||||
Kouyu 100 [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Unrealized holding gains (loss) | 0 | |||||||||||||||
Equity ownership interest | 7.00% | |||||||||||||||
Cash consideration | $ 3,472,000 | |||||||||||||||
Golden Finance [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Unrealized holding gains (loss) | 10,567,000 | 19,407,000 | ||||||||||||||
Cash consideration | $ 11,437,000 | $ 3,398,000 | ||||||||||||||
Investment ownership interest | 19.50% | |||||||||||||||
Alo7.com [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Unrealized holding gains (loss) | $ (8,678,000) | 1,704,000 | 13,428,000 | |||||||||||||
Investment ownership interest | 17.20% | |||||||||||||||
Long term investments | $ 2,576,000 | $ 10,000,000 | $ 300,000 | $ 1,000,000 | ||||||||||||
Noncontrolling interest, equity ownership percentage | 3.40% | |||||||||||||||
Trust 556 [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Unrealized holding gains (loss) | $ 706,000 | 383,000 | ||||||||||||||
Long term investments | $ 15,654,000 | 16,743,000 | ||||||||||||||
Investment interest rate | 8.50% | |||||||||||||||
Tarena [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Equity ownership interest classified as available for sale | 3.00% | |||||||||||||||
Unrealized holding gains (loss) | 9,750,000 | (1,005,000) | $ 3,495,000 | |||||||||||||
Long term investments | $ 13,500,000 | |||||||||||||||
ROBOROBO [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Unrealized holding gains (loss) | 423,000 | $ 5,643,000 | ||||||||||||||
Investment ownership interest | 18.00% | |||||||||||||||
Long term investments | $ 4,356,000 | |||||||||||||||
Realized gain from long-term investments | 7,086,000 | |||||||||||||||
Convertible Bond [Member] | Shangjiachongye [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Long term investments | $ 12,310,000 | |||||||||||||||
Redeemable Preferred Shares [Member] | Shangjiachongye [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Unrealized holding gains (loss) | $ 8,129,000 | |||||||||||||||
Investment ownership interest | 4.90% | |||||||||||||||
Long term investments | $ 12,205,000 |
Accrued Expenses and Other Cu84
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |||
Accrued payroll | $ 157,167 | $ 131,151 | |
Payable for purchase of property and equipment | 21,445 | 11,953 | |
Amounts reimbursable to employees | [1] | 11,022 | 8,294 |
Individual taxes withholding | 6,454 | 8,186 | |
Refundable fees received from students | [2] | 8,687 | 5,755 |
Business taxes payable | 5,259 | ||
Value-added taxes payable | 9,516 | 6,506 | |
Accrued advertising fees | 7,798 | 6,443 | |
Rent payable | 7,532 | 6,285 | |
Welfare payable | 6,102 | 6,004 | |
Royalty fees payable | [3] | 4,011 | 3,637 |
Refundable deposit | [4] | 5,382 | 3,161 |
Accrued professional service fees | 1,486 | 2,352 | |
Other taxes payable | 1,604 | 1,240 | |
Others | [5] | 12,494 | 10,818 |
Total | $ 260,700 | $ 217,044 | |
[1] | Amounts reimbursable to employees included traveling and the related expenses incurred by employees on behalf of the Group. | ||
[2] | Refundable fees received from students represent (1) the miscellaneous expenses other than tuition fee received from students which will be paid out on behalf of students; and (2) tuition fees refundable to students for withdrawn classes. | ||
[3] | Royalty fees payable related to payments to content providers for on-line learning programs and those to counterparties for copyright and resource sharing. | ||
[4] | Refundable deposits represent student deposits for dormitory or other fees that will be refunded upon graduation and student security deposits refunded upon completion of the study tour. | ||
[5] | Others primarily included transportation expenses, utility fees, property management fees, and other miscellaneous expenses payable. |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | May 31, 2016 | Jan. 20, 2006 | Nov. 30, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Feb. 28, 2015 | Sep. 30, 2014 | Jul. 31, 2014 | May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2017 | Jan. 01, 2008 | Jan. 01, 2007 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Options to purchase shares | 8,000,000 | |||||||||||||
Incremental common shares for grant | 5,000,000 | 5,000,000 | ||||||||||||
Common shares to add on the first business day from 2009 | 3,000,000 | |||||||||||||
Minimum percentage of shares to be added from 2009 | 2.00% | |||||||||||||
Additional shares granted | 2,000,000 | |||||||||||||
Share Incentive Plan, expiration period | 10 years | |||||||||||||
Number of shares repurchased from open market | 2,800,849 | 5,246,349 | ||||||||||||
Treasury shares for future issuance | 691,943 | 691,943 | ||||||||||||
Share-based compensation expense | $ 20,287,000 | $ 16,810,000 | $ 15,689,000 | |||||||||||
Minimum percentage for exercise price of option | 100.00% | 100.00% | ||||||||||||
Number of canceled outstanding share options | 23,938 | |||||||||||||
Outstanding share options granted Date | Mar. 5, 2007 | |||||||||||||
New share options granted | 0 | 0 | 0 | |||||||||||
Common shares issued to employees and non-employees upon the exercise of their share options | 11,285,510 | 11,285,510 | ||||||||||||
Reissuance of treasury stock for the exercises of employee share options | 2,256,592 | |||||||||||||
Common shares transferred to be issued to employees and non employees upon the exercise of their vested share options and vesting of non-vesting equity shares | 5,246,349 | |||||||||||||
Value of options exercised | $ 2,133,000 | $ 4,802,000 | $ 5,249,000 | |||||||||||
Unrecognized compensation expense | $ 0 | $ 0 | ||||||||||||
Common shares issued to employees upon the vesting of their shares | 4,714,490 | 4,714,490 | ||||||||||||
Reissuance of treasury stock for Non-vested equity shares vested | 2,297,814 | |||||||||||||
Weighted-average grant date fair value, Granted | $ 47.19 | $ 22.66 | $ 19.26 | |||||||||||
Total fair value of shares vested | $ 3,783,000 | |||||||||||||
July 2014 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 209,650 | |||||||||||||
Granted shares vested date | May 31, 2015 | |||||||||||||
September 2014 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 24,020 | |||||||||||||
Granted shares vested date | May 31, 2015 | |||||||||||||
February 2015 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 600,000 | |||||||||||||
February 2015 [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 240,000 | |||||||||||||
Granted shares vested date | Dec. 31, 2015 | |||||||||||||
February 2015 [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 180,000 | |||||||||||||
Granted shares vested date | Dec. 31, 2016 | |||||||||||||
February 2015 [Member] | Share-based Compensation Award, Tranche Three [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 180,000 | |||||||||||||
Granted shares vested date | Dec. 31, 2017 | |||||||||||||
July 2015 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 486,330 | |||||||||||||
Granted shares vested date | May 31, 2016 | |||||||||||||
October Two Thousand Fifteen Grant One [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 60,000 | |||||||||||||
October Two Thousand Fifteen Grant One [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 20,000 | |||||||||||||
Granted shares vested date | May 31, 2016 | |||||||||||||
October Two Thousand Fifteen Grant One [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 20,000 | |||||||||||||
Granted shares vested date | Dec. 31, 2016 | |||||||||||||
October Two Thousand Fifteen Grant One [Member] | Share-based Compensation Award, Tranche Three [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 20,000 | |||||||||||||
Granted shares vested date | Dec. 31, 2017 | |||||||||||||
November 2016 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
NES grant to employees | 436,016 | |||||||||||||
Granted shares vested date | Jun. 30, 2017 | |||||||||||||
Non-Vested Equity Shares [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share transfer | 16,000,000 | 16,000,000 | ||||||||||||
Total unrecognized compensation cost related to NES | $ 3,486,000 | $ 3,486,000 | ||||||||||||
Weighted-average period of recognition | 2 months 12 days | |||||||||||||
Non-Vested Equity Shares [Member] | July 2014 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Weighted-average grant date fair value, Granted | $ 21.01 | |||||||||||||
Non-Vested Equity Shares [Member] | September 2014 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Weighted-average grant date fair value, Granted | 22.32 | |||||||||||||
Non-Vested Equity Shares [Member] | February 2015 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Weighted-average grant date fair value, Granted | 18.52 | |||||||||||||
Non-Vested Equity Shares [Member] | July 2015 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Weighted-average grant date fair value, Granted | 22.69 | |||||||||||||
Non-Vested Equity Shares [Member] | November 2016 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Weighted-average grant date fair value, Granted | $ 47.19 | |||||||||||||
2016 Share Incentive Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Maximum aggregate number of shares which may be issued | 10,000,000 | 10,000,000 | ||||||||||||
New share options granted | 0 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share Options Granted and NES (Detail) - $ / shares | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 0 | 0 | 0 |
Fair value of common shares | $ 47.19 | $ 22.66 | $ 19.26 |
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 15,826,000 | ||
Non-Vested Equity Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 1,816,016 | ||
February 2006 [Member] | Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 7,099,500 | ||
Fair value of common shares | $ 1 | ||
Exercise price | $ 2.02 | ||
July 2006 [Member] | Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 1,620,000 | ||
Fair value of common shares | $ 1.15 | ||
Exercise price | $ 2.38 | ||
September 2006 [Member] | Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 100,000 | ||
Fair value of common shares | $ 2.38 | ||
Exercise price | $ 3.75 | ||
March 2007 [Member] | Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 3,946,500 | ||
Fair value of common shares | $ 4.09 | ||
Exercise price | $ 8.75 | ||
January 2012 [Member] | Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 3,060,000 | ||
Fair value of common shares | $ 10.33 | ||
Exercise price | $ 12.19 | ||
July 2014 [Member] | Non-Vested Equity Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 209,650 | ||
Fair value of common shares | $ 21.01 | ||
Intrinsic value | $ 21.01 | ||
September 2014 [Member] | Non-Vested Equity Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 24,020 | ||
Fair value of common shares | $ 22.32 | ||
Intrinsic value | $ 22.32 | ||
February 2015 [Member] | Non-Vested Equity Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 600,000 | ||
Fair value of common shares | $ 18.52 | ||
Intrinsic value | $ 18.52 | ||
July 2015 [Member] | Non-Vested Equity Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 486,330 | ||
Fair value of common shares | $ 22.69 | ||
Intrinsic value | $ 22.69 | ||
October 2015 [Member] | Non-Vested Equity Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 60,000 | ||
Fair value of common shares | $ 22.45 | ||
Intrinsic value | $ 22.45 | ||
November 2016 [Member] | Non-Vested Equity Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options and non-vested equity shares granted to date | 436,016 | ||
Fair value of common shares | $ 47.19 | ||
Intrinsic value | $ 47.19 |
Share-Based Compensation - Su87
Share-Based Compensation - Summary of Share Options Activity under 2006 Share Incentive Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted number of options, Granted | 0 | 0 | 0 |
2006 Share Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted number of options outstanding, Beginning balance | 78,337 | ||
Weighted number of options, Granted | 0 | ||
Weighted number of options, Exercised | 48,047 | ||
Weighted number of options, Forfeited | 23,938 | ||
Weighted number of options outstanding, Ending balance | 6,352 | 78,337 | |
Weighted number of options vested and expect to vest at May 31, 2017 | 6,352 | ||
Weighted number of options exercisable at May 31, 2017 | 6,352 | ||
Weighted average exercise prices, Options outstanding, Beginning balance | $ 6.13 | ||
Weighted average exercise prices, Granted | 0 | ||
Weighted average exercise prices, Exercised | 5.37 | ||
Weighted average exercise prices, Forfeited | 8.75 | ||
Weighted average exercise prices, Options outstanding, Ending balance | 2.02 | $ 6.13 | |
Weighted average exercise prices, Options vested and expect to vest at May 31, 2017 | 2.02 | ||
Weighted average exercise prices, Options exercisable at May 31, 2017 | $ 2.02 | ||
Remaining contractual life, Options outstanding | 1 year 6 months 29 days | 6 months 29 days | |
Remaining contractual life, Options vested and expect to vest | 1 year 6 months 29 days | ||
Remaining contractual life, Options exercisable | 1 year 6 months 29 days | ||
Aggregate intrinsic value, Options outstanding | $ 442 | $ 2,829 | |
Aggregate intrinsic value, Options vested and expect to vest at May 31, 2017 | 442 | ||
Aggregate intrinsic value, Options exercisable at May 31, 2017 | $ 442 |
Share-Based Compensation - Su88
Share-Based Compensation - Summary of NES Activities under 2006 Share Incentive Plan (Detail) - $ / shares | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Weighted-average grant date fair value, Granted | $ 47.19 | $ 22.66 | $ 19.26 |
2006 Share Incentive Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of NES, Beginning balance | 400,000 | ||
Number of NES, Granted | 436,016 | ||
Number of NES, Vested | (200,000) | ||
Number of NES, Forfeited | (4,050) | ||
Number of NES, Ending balance | 631,966 | 400,000 | |
Number of NES, vested and expect to vest at May 31, 2017 | 631,966 | ||
Weighted-average grant date fair value, Beginning balance | $ 18.91 | ||
Weighted-average grant date fair value, Granted | 47.19 | ||
Weighted-average grant date fair value, Vested | 18.91 | ||
Weighted-average grant date fair value, Forfeited | 47.19 | ||
Weighted-average grant date fair value, Ending balance | 38.24 | $ 18.91 | |
Weighted-average grant date intrinsic value, Beginning balance | 18.91 | ||
Weighted-average grant date intrinsic value, Granted | 47.19 | ||
Weighted-average grant date intrinsic value, Vested | 18.91 | ||
Weighted-average grant date intrinsic value, Forfeited | 47.19 | ||
Weighted-average grant date intrinsic value, Ending balance | $ 38.24 | $ 18.91 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Current: | |||
PRC | $ 51,142 | $ 39,467 | $ 31,552 |
Deferred: | |||
PRC | (518) | (1,936) | (5,331) |
Total provision for income taxes | $ 50,624 | $ 37,531 | $ 26,221 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended | |||
May 31, 2017USD ($)$ / shares | May 31, 2017CNY (¥) | May 31, 2016USD ($)$ / shares | May 31, 2015USD ($)$ / shares | |
Income Taxes [Line Items] | ||||
Income tax rate | 15.31% | 15.31% | 14.04% | 11.89% |
Cash paid for dividend | $ 62,668,000 | |||
Valuation allowance | $ 3,981,000 | 3,624,000 | ||
Increase in valuation allowance | 357,000 | |||
Net operating loss | 36,608,000 | |||
Increase of income tax expense | $ 42,895,000 | $ 47,559,000 | $ 47,080,000 | |
Decrease in basic net income per share | $ / shares | $ 0.27 | $ 0.30 | $ 0.30 | |
Decrease in diluted net income per share | $ / shares | $ 0.27 | $ 0.30 | $ 0.30 | |
Withholding tax, dividends paid by PRC schools and subsidiaries to their foreign investors | 10.00% | |||
Aggregate undistributed earnings available for distribution | $ 1,457,705,000 | $ 1,133,217,000 | ||
Unrecognized tax benefits | 0 | 0 | $ 0 | |
Wholly owned subsidiaries [Member] | ||||
Income Taxes [Line Items] | ||||
Cash paid for dividend | 0 | 75,898,000 | ||
Withholding tax paid for the dividend | $ 0 | 7,590,000 | ||
Beijing Pioneer Technology Company Limited [Member] | ||||
Income Taxes [Line Items] | ||||
Preferential tax rate | 15.00% | 15.00% | ||
Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Underpayment of tax liability | $ 16,000 | ¥ 100,000 | ||
Shanghai Smart Words Software Technology Company Limited [Member] | ||||
Income Taxes [Line Items] | ||||
Withholding tax paid for the dividend | $ 5,559,000 | |||
Beijing Hewstone, Shanghai Smart Words and Beijing Decision [Member] | ||||
Income Taxes [Line Items] | ||||
Withholding tax paid for the dividend | $ 7,590,000 | |||
High and new tech enterprise (HNTE) [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax rate | 15.00% | 15.00% | 15.00% | 15.00% |
Preferential tax rate | 15.00% | |||
Newly established software enterprise (NESE) [Member] | ||||
Income Taxes [Line Items] | ||||
Preferential tax rate | 12.50% | 12.50% | ||
Tax holiday year | 2 years | 2 years | ||
Income tax holiday, description | Enterprises that qualify as the "newly established software enterprise" ("NESE") are exempt from Enterprise Income Tax ("EIT") for two years beginning the enterprise's first profitable year followed by a tax rate of 12.5% for the succeeding three years. | Enterprises that qualify as the "newly established software enterprise" ("NESE") are exempt from Enterprise Income Tax ("EIT") for two years beginning the enterprise's first profitable year followed by a tax rate of 12.5% for the succeeding three years. | ||
Peoples Republic Of China Entities [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax rate | 25.00% | 25.00% | ||
Variable interest entities (VIEs) [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax rate | 25.00% | 25.00% | ||
Hong Kong [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax rate | 16.50% | 16.50% | ||
Earliest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss expiration dates | May 31, 2018 | May 31, 2018 | ||
Latest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss expiration dates | May 31, 2022 | May 31, 2022 |
Income Taxes - Components of Gr
Income Taxes - Components of Group's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Deferred tax assets, non-current | ||
Allowance doubtful accounts | $ 2,017 | $ 252 |
Accrued expenses | 21,893 | 18,427 |
Deferred revenue for incentive plan | 233 | 2,376 |
Net operating loss carry-forward | 8,696 | 6,910 |
Total deferred tax assets, non-current | 32,839 | 27,965 |
Less: valuation allowance | (3,981) | (3,624) |
Net, deferred tax assets, non-current | 28,858 | 24,341 |
Deferred tax liabilities, non-current | ||
Acquired of non-current assets | 2,220 | 1,982 |
Total deferred tax liabilities, non-current | $ 2,220 | $ 1,982 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates (Detail) | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 25.00% | 25.00% | 25.00% |
Effect of expenses not deductible for tax purposes | 2.03% | 4.57% | 4.91% |
Effect of tax holiday | (13.41%) | (18.05%) | (20.82%) |
Changes in valuation allowance | 0.11% | 0.25% | (0.59%) |
Effect of dividend withholding tax | 1.58% | 2.27% | 3.39% |
Total provision for income taxes | 15.31% | 14.04% | 11.89% |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Numerator used in basic and diluted net income per share: | |||
Net income attributable to New Oriental Education & Technology Group Inc. | $ 274,457 | $ 224,884 | $ 193,013 |
Net income available for future distribution | $ 274,457 | $ 224,884 | $ 193,013 |
Shares (denominator): | |||
Weighted average common shares outstanding used in computing basic net income per share | 157,551,320 | 156,782,439 | 156,438,606 |
Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method | 435,074 | 609,247 | 863,568 |
Weighted average common shares outstanding used in computing diluted net income per share | 157,986,394 | 157,391,686 | 157,302,174 |
Net income per share | |||
- Basic | $ 1.74 | $ 1.43 | $ 1.23 |
- Diluted | $ 1.74 | $ 1.43 | $ 1.23 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Earnings Per Share [Abstract] | |||
Weighted average treasury shares excluded in computing basic net income per share | 828,067 | 1,596,948 | 1,940,781 |
Employee stock options excluded from the dilutive share calculation | 0 | 0 | 0 |
Related-Parties Transactions -
Related-Parties Transactions - Balances and Transaction with Related Parties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - non current | $ 1,748 | $ 1,741 | ||
Amounts due from related parties - current | 5,948 | 4,539 | ||
Amounts due to related parties - current | 48 | 42 | ||
Revenue | 90 | 191 | ||
Non-Interest Bearing Loan [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | 7,148 | 2,518 | ||
Metropolis Holding China Limited [Member] | Executive Chairman [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - non current | [1] | 1,064 | 1,741 | |
Amounts due from related parties - current | [1] | 1,895 | 637 | |
Rental expense | [1] | 6,790 | 7,139 | $ 5,298 |
MaxEn [Member] | Joint Venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - non current | 684 | |||
Amounts due from related parties - current | 812 | |||
Amounts due to related parties - current | 12 | 13 | ||
Revenue | 177 | |||
Haiwei Career [Member] | Joint Venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [2] | 3,965 | 1,553 | |
Haiwei Career [Member] | Joint Venture [Member] | Non-Interest Bearing Loan [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [2] | 3,965 | 1,520 | |
Beijing Dianshijingwei Technology Co.,Ltd [Member] | Long-term investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [3] | 1,520 | ||
Others [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [4] | 88 | 17 | |
Amounts due to related parties - current | [4] | 36 | 29 | |
Weixuemingri [Member] | Joint Venture [Member] | Non-Interest Bearing Loan [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [5] | 1,733 | 998 | |
Great Thanks Holdings Limited [Member] | Joint Venture [Member] | Non-Interest Bearing Loan [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | 1,450 | |||
Beijing Tongban Education & Technology Co. Ltd. [Member] | Long-term investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 12 | 3 | ||
STEMedu.cn [Member] | Long-term investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 60 | 11 | ||
Cost | 23 | $ 30 | ||
Goldern Finance [Member] | Long-term investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue | $ 18 | |||
[1] | Since April 2010, the Group began renting a large portion of a building owned by Metropolis Holding China Limited for office space. In March 2012, Metropolis Holding China Limited was acquired by a company wholly -owned by Mr. Yu, the Group's executive chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2017, the current and non-current amounts due from Metropolis Holding China Limited were US$1,895 and US$1,064, respectively, which represented prepaid rent and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by all of the directors. | |||
[2] | In October 2014, Haiwei Career became a joint venture of the Group. As a result, Haiwei Career became a related party of the Group. As of May 31, 2017, the amount due from Haiwei Career was US$3,965, which represented loans from the Group to Haiwei Career with non-interest bearing to support its daily operation supporting. All the loans are payable within one year. | |||
[3] | As of May 31, 2016, the amount due from Dianshijingwei represented the non-interest bearing loan provided by the Group before the disposal of Dianshijingwei to support its daily operation. As of May 31, 2017, the Group had collected the loans from Dianshijingwei. | |||
[4] | As of May 31, 2017, the balance in "others" included the current receivables from long-term investees of Tongban, Goldern Finance and etc. | |||
[5] | As of May 31, 2017, the amount due from Weixue Mingri represented the non-interest bearing loans provided by the Group to support its daily operation and the outstanding loans were fully wrote off by the Group. |
Related-Parties Transactions 96
Related-Parties Transactions - Balances and Transaction with Related Parties (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | ||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | $ 5,948 | $ 4,539 | |
Amounts due from related parties, non-current | 1,748 | 1,741 | |
Metropolis Holding China Limited [Member] | Executive Chairman [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | [1] | 1,895 | 637 |
Amounts due from related parties, non-current | [1] | 1,064 | 1,741 |
Haiwei Career [Member] | Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | [2] | 3,965 | 1,553 |
Non-Interest Bearing Loan [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | 7,148 | 2,518 | |
Non-Interest Bearing Loan [Member] | Haiwei Career [Member] | Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | [2] | $ 3,965 | $ 1,520 |
Loans paid off period | 1 year | ||
[1] | Since April 2010, the Group began renting a large portion of a building owned by Metropolis Holding China Limited for office space. In March 2012, Metropolis Holding China Limited was acquired by a company wholly -owned by Mr. Yu, the Group's executive chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2017, the current and non-current amounts due from Metropolis Holding China Limited were US$1,895 and US$1,064, respectively, which represented prepaid rent and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by all of the directors. | ||
[2] | In October 2014, Haiwei Career became a joint venture of the Group. As a result, Haiwei Career became a related party of the Group. As of May 31, 2017, the amount due from Haiwei Career was US$3,965, which represented loans from the Group to Haiwei Career with non-interest bearing to support its daily operation supporting. All the loans are payable within one year. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Operating Leased Assets [Line Items] | |||
Rent expenses for cancelable and non-cancelable leases | $ 199,329 | $ 173,797 | $ 157,523 |
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease term | 10 years |
Commitments and Contingencies98
Commitments and Contingencies - Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands | May 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 204,996 |
2,019 | 185,059 |
2,020 | 157,333 |
2,021 | 123,894 |
2,022 | 83,329 |
Thereafter | 88,611 |
Operating Leases, Future Minimum Payments Due, Total | $ 843,222 |
Commitments and Contingencies99
Commitments and Contingencies - Future Minimum Capital Commitments under Non-Cancelable Construction and Investments (Detail) $ in Thousands | May 31, 2017USD ($) |
Capital Lease Obligations [Line Items] | |
Capital commitment | $ 29,761 |
Available-for-Sale Investments [Member] | |
Capital Lease Obligations [Line Items] | |
Capital commitment | 10,064 |
Purchase of Property and Equipment [Member] | |
Capital Lease Obligations [Line Items] | |
Capital commitment | 3,359 |
Leasehold Improvements [Member] | |
Capital Lease Obligations [Line Items] | |
Capital commitment | $ 16,338 |
Noncontrolling Interests - Summ
Noncontrolling Interests - Summary of Changes in Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Noncontrolling Interest [Line Items] | |||
Beginning balance | $ 30,090 | $ 3,496 | |
Capital injections from noncontrolling interests shareholders | 3,924 | 28,919 | |
Capital repurchase from noncontrolling interests shareholders | (3,497) | ||
Addition of noncontrolling interests in connection with acquisition | 3,909 | ||
Unrealized gain on available-for-sale investment attributed to noncontrolling interests shareholders | (23) | 999 | |
Foreign currency translation adjustment attributed to noncontrolling interests shareholders | (1,109) | (271) | |
Net income (loss) attributed to noncontrolling interests shareholders | 2,339 | 444 | $ (295) |
Ending balance | 39,130 | 30,090 | 3,496 |
Koolearn Corporation [Member] | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 3,458 | ||
Capital repurchase from noncontrolling interests shareholders | (3,497) | ||
Net income (loss) attributed to noncontrolling interests shareholders | 39 | ||
Ending balance | 3,458 | ||
Beijing New Oriental Xuncheng Network Technology Company Limited [Member] | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 29,890 | ||
Capital injections from noncontrolling interests shareholders | 3,348 | 28,737 | |
Unrealized gain on available-for-sale investment attributed to noncontrolling interests shareholders | (23) | 999 | |
Foreign currency translation adjustment attributed to noncontrolling interests shareholders | (1,118) | (269) | |
Net income (loss) attributed to noncontrolling interests shareholders | 4,454 | 423 | |
Ending balance | 36,551 | 29,890 | |
Beijing New Road Information Consulting Services Co., Ltd. [Member] | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 39 | 38 | |
Foreign currency translation adjustment attributed to noncontrolling interests shareholders | (2) | (2) | |
Net income (loss) attributed to noncontrolling interests shareholders | (1) | 3 | |
Ending balance | 36 | 39 | $ 38 |
Jinzhou New Oriental Training School [Member] | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 161 | ||
Capital injections from noncontrolling interests shareholders | 182 | ||
Foreign currency translation adjustment attributed to noncontrolling interests shareholders | (4) | ||
Net income (loss) attributed to noncontrolling interests shareholders | (176) | (21) | |
Ending balance | (19) | $ 161 | |
Dongfangyoubo [Member] | |||
Noncontrolling Interest [Line Items] | |||
Capital injections from noncontrolling interests shareholders | 576 | ||
Foreign currency translation adjustment attributed to noncontrolling interests shareholders | 2 | ||
Net income (loss) attributed to noncontrolling interests shareholders | (254) | ||
Ending balance | 324 | ||
Ainuoshida [Member] | |||
Noncontrolling Interest [Line Items] | |||
Addition of noncontrolling interests in connection with acquisition | 3,909 | ||
Foreign currency translation adjustment attributed to noncontrolling interests shareholders | 13 | ||
Net income (loss) attributed to noncontrolling interests shareholders | (1,684) | ||
Ending balance | $ 2,238 |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Effects of Changes in Ownership Interest on Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Noncontrolling Interest [Line Items] | |||
Net income attribute to New Oriental Education & Technology Group Inc. | $ 274,457 | $ 224,884 | $ 193,013 |
Increase in the Group's additional paid-in capital resulting from capital injection of noncontrolling interests shareholders | 68,498 | 3,791 | |
Repurchase shares from noncontrolling interest | (3,752) | ||
Parent Company [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income attribute to New Oriental Education & Technology Group Inc. | 274,457 | 224,884 | $ 193,013 |
Increase in the Group's additional paid-in capital resulting from capital injection of noncontrolling interests shareholders | 4,871 | 39,579 | |
Repurchase shares from noncontrolling interest | (255) | ||
Changes from net income attributable to New Oriental Education & Technology Group Inc. shareholders and transfers from/to noncontrolling interests | 279,620 | 264,463 | |
Dongfangyoubo [Member] | Parent Company [Member] | |||
Noncontrolling Interest [Line Items] | |||
Increase in the Group's additional paid-in capital resulting from capital injection of noncontrolling interests shareholders | 138 | ||
Beijing New Oriental Xuncheng Network Technology Company Limited [Member] | Parent Company [Member] | |||
Noncontrolling Interest [Line Items] | |||
Increase in the Group's additional paid-in capital resulting from capital injection of noncontrolling interests shareholders | 4,733 | $ 39,579 | |
Repurchase shares from noncontrolling interest | (5,412) | ||
Increase in the Group's additional paid-in capital resulting from transferring common shares to noncontrolling interests shareholders | $ 5,704 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||||||||
Feb. 28, 2015 | Jun. 30, 2017 | May 31, 2017 | Dec. 31, 2016 | Dec. 01, 2016 | Jun. 30, 2016 | Apr. 30, 2016 | Nov. 30, 2015 | May 31, 2015 | |
Koolearn Corporation [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Ordinary shares issued | 5,000,000 | ||||||||
Cash consideration received on issuance of equity | $ 3,752 | ||||||||
Noncontrolling interest, equity percentage | 5.90% | ||||||||
Beijing New Road Information Consulting Services Co., Ltd. [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Noncontrolling interest, equity percentage | 49.00% | ||||||||
Noncontrolling interest, ownership percentage by parent | 51.00% | ||||||||
Beijing New Oriental Xuncheng Network Technology Company Limited [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Noncontrolling interest, equity percentage | 1.70% | 1.30% | 1.30% | 12.50% | 21.00% | ||||
Noncontrolling interest, ownership percentage by parent | 68.00% | ||||||||
Jinzhou New Oriental Training School [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Noncontrolling interest, equity percentage | 40.00% | ||||||||
Noncontrolling interest, ownership percentage by parent | 60.00% | ||||||||
Dongfangyouba [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Noncontrolling interest, equity percentage | 49.00% | ||||||||
Noncontrolling interest, ownership percentage by parent | 51.00% | ||||||||
Ainuoshida [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Business acquisition, equity interest | 51.00% | 33.00% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | |
May 31, 2017 | May 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 7 | 6 |
Sales Revenue, Segment [Member] | Product Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Quantitative threshold | 10.00% |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 1,799,509 | $ 1,478,348 | $ 1,246,766 |
Operating costs and expenses: | |||
Cost of revenues | (749,586) | (614,364) | (526,320) |
Selling and marketing | (232,826) | (197,897) | (188,483) |
General and administrative | (554,948) | (471,010) | (378,434) |
Total operating costs and expenses | (1,537,360) | (1,283,271) | (1,093,237) |
Gain on disposal of subsidiaries | 3,760 | ||
Operating income | 262,149 | 198,837 | 153,529 |
Total assets | 2,924,979 | 2,354,834 | 1,951,537 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,799,509 | 1,478,348 | 1,246,766 |
Operating costs and expenses: | |||
Cost of revenues | (749,586) | (614,364) | (526,320) |
Selling and marketing | (208,463) | (174,814) | (166,276) |
General and administrative | (438,672) | (365,181) | (304,770) |
Total operating costs and expenses | (1,537,360) | (1,283,271) | (1,093,237) |
Gain on disposal of subsidiaries | 3,760 | ||
Operating income | 262,149 | 198,837 | 153,529 |
Total assets | 1,968,216 | 1,610,880 | 1,311,508 |
Corporate, Non-Segment [Member] | |||
Operating costs and expenses: | |||
Total operating costs and expenses | (140,639) | (128,912) | (95,871) |
Total assets | 956,763 | 743,954 | 640,029 |
Language Training and Test Preparation Course [Member] | |||
Operating costs and expenses: | |||
Total assets | 1,361,261 | 1,120,580 | 937,020 |
Language Training and Test Preparation Course [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,510,497 | 1,238,572 | 1,040,380 |
Operating costs and expenses: | |||
Cost of revenues | (623,364) | (516,370) | (442,994) |
Selling and marketing | (146,544) | (125,815) | (122,697) |
General and administrative | (363,949) | (296,686) | (245,315) |
Total operating costs and expenses | (1,133,857) | (938,871) | (811,006) |
Operating income | 376,640 | 299,701 | 229,374 |
Total assets | 1,361,261 | 1,120,580 | 937,020 |
Primary and Secondary Education [Member] | |||
Operating costs and expenses: | |||
Total assets | 79,655 | 78,556 | 75,046 |
Primary and Secondary Education [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 30,782 | 30,011 | 26,735 |
Operating costs and expenses: | |||
Cost of revenues | (10,465) | (9,812) | (9,083) |
Selling and marketing | (1,347) | (744) | (1,039) |
General and administrative | (11,317) | (12,558) | (10,068) |
Total operating costs and expenses | (23,129) | (23,114) | (20,190) |
Operating income | 7,653 | 6,897 | 6,545 |
Total assets | 79,655 | 78,556 | 75,046 |
Others [Member] | |||
Operating costs and expenses: | |||
Total assets | 527,300 | 411,744 | 299,442 |
Others [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 258,230 | 209,765 | 179,651 |
Operating costs and expenses: | |||
Cost of revenues | (115,757) | (88,182) | (74,243) |
Selling and marketing | (60,572) | (48,255) | (42,540) |
General and administrative | (63,406) | (55,937) | (49,387) |
Total operating costs and expenses | (239,735) | (192,374) | (166,170) |
Gain on disposal of subsidiaries | 3,760 | ||
Operating income | 18,495 | 21,151 | 13,481 |
Total assets | $ 527,300 | $ 411,744 | $ 299,442 |
Mainland China Contribution 105
Mainland China Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Contributions for employee benefits | $ 89,709 | $ 71,434 | $ 61,448 |
Statutory Reserve - Additional
Statutory Reserve - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Statutory Accounting Practices [Line Items] | |||
Percentage allocation of profits to general reserves | 10.00% | ||
Registered capital | 50.00% | ||
Accrued for general reserve | $ 1,749 | $ 695 | $ 530 |
Percentage allocation of profits to development fund | 25.00% | ||
Group transfers to the statutory reserves | $ 35,278 | 31,853 | 23,742 |
Development fund [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Appropriations to reserves | $ 33,529 | $ 31,158 | $ 23,212 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Restricted Net Assets [Line Items] | ||
Restricted net assets | $ 488,560 | $ 358,956 |
Variable interest entities (VIEs) [Member] | Paid in capital, additional paid-in capital and statutory reserves [Member] | ||
Restricted Net Assets [Line Items] | ||
Restricted net assets | 425,927 | 292,542 |
Wholly owned subsidiaries [Member] | Paid in capital, additional paid-in capital and statutory reserves [Member] | ||
Restricted Net Assets [Line Items] | ||
Restricted net assets | $ 62,633 | $ 66,414 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jul. 26, 2017 | May 31, 2016 |
Subsequent Event [Line Items] | ||
Special cash dividend declared per share | $ 0.4 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Special cash dividend declared per share | $ 0.45 | |
Dividend payable date | Oct. 6, 2017 | |
Ex-dividend date | Sep. 1, 2017 | |
Aggregate amount of cash dividends to be paid | $ 70 | |
Shareholders date of record | Sep. 6, 2017 |
Schedule I - Condensed Finan109
Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 641,018 | $ 709,209 | $ 531,298 | $ 371,593 |
Term deposit | 195,085 | 86,706 | ||
Prepaid expense and other current assets | 119,397 | 99,677 | ||
Amounts due from related parties | 5,948 | 4,539 | ||
Total current assets | 2,326,262 | 1,869,336 | ||
Amounts due from related parties | 1,748 | 1,741 | ||
Long-term investments | 217,259 | 178,863 | ||
Total assets | 2,924,979 | 2,354,834 | 1,951,537 | |
Current liabilities: | ||||
Accrued expenses and other current liabilities | 260,700 | 217,044 | ||
Amounts due to related parties | 48 | 42 | ||
Total current liabilities | 1,202,681 | 918,190 | ||
Equity: | ||||
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2016 and 2017; 158,379,387 shares issued as of May 31, 2016 and 2017; 157,439,397 and 157,687,444 shares outstanding as of May 31, 2016 and 2017, respectively) | 1,584 | 1,584 | ||
Treasury stock | (7) | (9) | ||
Additional paid-in capital | 249,126 | 223,422 | ||
Retained earnings | 1,171,109 | 931,930 | ||
Accumulated other comprehensive income | 39,161 | 62,948 | ||
Total New Oriental Education & Technology Group Inc. shareholders' equity | 1,680,948 | 1,404,572 | ||
Total liabilities and equity | 2,924,979 | 2,354,834 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 11,472 | 11,984 | 22,748 | 15,874 |
Term deposit | 10,000 | 10,000 | ||
Prepaid expense and other current assets | 210 | 5,900 | ||
Amounts due from related parties | 16,758 | |||
Total current assets | 21,682 | 44,642 | ||
Amounts due from related parties | 56,965 | |||
Long-term investments | 120,260 | 96,498 | ||
Investments in subsidiaries and VIEs | 1,569,358 | 1,353,090 | ||
Total assets | 1,768,265 | 1,494,230 | ||
Current liabilities: | ||||
Accrued expenses and other current liabilities | 3,675 | 6,016 | ||
Amounts due to related parties | 83,642 | 83,642 | ||
Total current liabilities | 87,317 | 89,658 | ||
Equity: | ||||
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2016 and 2017; 158,379,387 shares issued as of May 31, 2016 and 2017; 157,439,397 and 157,687,444 shares outstanding as of May 31, 2016 and 2017, respectively) | 1,584 | 1,584 | ||
Treasury stock | (7) | (9) | ||
Additional paid-in capital | 249,126 | 223,422 | ||
Retained earnings | 1,391,084 | 1,116,627 | ||
Accumulated other comprehensive income | 39,161 | 62,948 | ||
Total New Oriental Education & Technology Group Inc. shareholders' equity | 1,680,948 | 1,404,572 | $ 1,220,348 | $ 1,025,758 |
Total liabilities and equity | $ 1,768,265 | $ 1,494,230 |
Schedule I - Condensed Finan110
Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Parenthetical) (Detail) - $ / shares | May 31, 2017 | May 31, 2016 |
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 158,379,387 | 158,379,387 |
Common stock, shares outstanding | 157,687,444 | 157,439,397 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 158,379,387 | 158,379,387 |
Common stock, shares outstanding | 157,687,444 | 157,439,397 |
Schedule I - Condensed Finan111
Schedule I - Condensed Financial Information of Parent Company - Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Operating costs and expenses: | |||
General and administrative | $ 554,948 | $ 471,010 | $ 378,434 |
Total operating costs and expenses | 1,537,360 | 1,283,271 | 1,093,237 |
Operating loss | 262,149 | 198,837 | 153,529 |
Interest income | 61,445 | 66,861 | 66,605 |
Equity in earnings of subsidiaries and VIEs | (3,289) | (4,425) | (1,537) |
Net income attributable to New Oriental Education & Technology Group Inc. | 274,457 | 224,884 | 193,013 |
Parent Company [Member] | |||
Operating costs and expenses: | |||
General and administrative | 18,236 | 16,732 | 12,963 |
Total operating costs and expenses | 18,236 | 16,732 | 12,963 |
Operating loss | (18,236) | (16,732) | (12,963) |
Interest income | 122 | 1 | 2 |
Equity in earnings of subsidiaries and VIEs | 292,571 | 241,615 | 205,974 |
Net income attributable to New Oriental Education & Technology Group Inc. | $ 274,457 | $ 224,884 | $ 193,013 |
Schedule I - Condensed Finan112
Schedule I - Condensed Financial Information of Parent Company - Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income | $ 274,457 | $ 224,884 | $ 193,013 |
Other comprehensive income, net of tax | |||
Foreign currency translation adjustment | (47,440) | (72,464) | 12,006 |
Unrealized gain on available-for-sale investment, net of tax effect of nil, nil and nil for years ended May 31, 2015, 2016 and 2017 | 22,521 | 36,635 | 21,940 |
Other comprehensive income/ (loss) | (24,919) | (35,829) | 33,946 |
Comprehensive income attributable to New Oriental Education & Technology Group Inc. | 250,670 | 188,327 | 226,959 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 274,457 | 224,884 | 193,013 |
Other comprehensive income, net of tax | |||
Foreign currency translation adjustment | (46,331) | (72,193) | 12,006 |
Unrealized gain on available-for-sale investment, net of tax effect of nil, nil and nil for years ended May 31, 2015, 2016 and 2017 | 22,544 | 35,636 | 21,940 |
Other comprehensive income/ (loss) | (23,787) | (36,557) | 33,946 |
Comprehensive income attributable to New Oriental Education & Technology Group Inc. | $ 250,670 | $ 188,327 | $ 226,959 |
Schedule I - Condensed Finan113
Schedule I - Condensed Financial Information of Parent Company - Statements of Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale investment, tax effect | $ 3,762 | ||
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale investment, tax effect | $ 0 | $ 0 | $ 0 |
Schedule I - Condensed Finan114
Schedule I - Condensed Financial Information of Parent Company - Statements of Changes in Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | 60 Months Ended | |||
May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2017 | ||
Condensed Financial Statements, Captions [Line Items] | |||||
Beginning Balance | $ 1,404,572 | ||||
Beginning Balance, shares | 158,379,387 | ||||
Reissuance of treasury stock for the exercises of employee share options | $ 256 | $ 2,431 | $ 11,362 | ||
Reissuance of treasury stock for the exercises of employee share options, shares | 2,256,592 | ||||
Reissuance of treasury stock for Non-vested equity shares vested, shares | 2,297,814 | ||||
Share based compensation expense | $ 20,287 | 16,810 | 15,689 | ||
Share repurchase | [1] | $ (59,420) | |||
Dividend declared | [2] | (62,668) | |||
Share repurchase, shares | (2,800,849) | (5,246,349) | |||
Net income | 274,457 | 224,884 | $ 193,013 | ||
Capital injection of noncontrolling interests | 68,498 | 3,791 | |||
Repurchase share from noncontrolling interest | (3,752) | ||||
Foreign currency translation adjustment | (47,440) | (72,464) | 12,006 | ||
Unrealized gain on available-for-sale securities, net of tax effect of nil | 22,521 | 36,635 | $ 21,940 | ||
Ending Balance | $ 1,680,948 | $ 1,404,572 | $ 1,680,948 | ||
Ending Balance, shares | 158,379,387 | 158,379,387 | 158,379,387 | ||
Common Shares [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Beginning Balance, shares | 157,439,397 | 156,486,763 | 157,758,666 | ||
Reissuance of treasury stock for the exercises of employee share options, shares | 48,047 | 240,304 | 953,514 | ||
Reissuance of treasury stock for Non-vested equity shares vested, shares | 200,000 | 712,330 | 575,432 | ||
Share repurchase, shares | (2,800,849) | ||||
Ending Balance, shares | 157,687,444 | 157,439,397 | 156,486,763 | 157,687,444 | |
Additional Paid-in Capital [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Reissuance of treasury stock for the exercises of employee share options | $ 256 | $ 2,428 | $ 11,353 | ||
Reissuance of treasury stock for Non-vested equity shares vested | (2) | (7) | (6) | ||
Share based compensation expense | 20,287 | 16,810 | 15,689 | ||
Share repurchase | [1] | (59,392) | |||
Capital injection of noncontrolling interests | 39,579 | ||||
Repurchase share from noncontrolling interest | (255) | ||||
Equity restructuring of Xuncheng | [3] | 23,214 | |||
Treasury Stock [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Reissuance of treasury stock for the exercises of employee share options | 3 | 9 | |||
Reissuance of treasury stock for Non-vested equity shares vested | 2 | 7 | 6 | ||
Share repurchase | [1] | (28) | |||
Retained Earnings [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Dividend declared | [2] | (62,668) | |||
Equity restructuring of Xuncheng | [3] | (22,448) | |||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Foreign currency translation adjustment | (46,331) | (72,193) | 12,006 | ||
Unrealized gain on available-for-sale securities, net of tax effect of nil | 22,544 | 35,636 | 21,940 | ||
Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Beginning Balance | $ 1,404,572 | 1,220,348 | 1,025,758 | ||
Beginning Balance, shares | 158,379,387 | ||||
Reissuance of treasury stock for the exercises of employee share options | $ 256 | 2,431 | 11,362 | ||
Share based compensation expense | 20,287 | 16,810 | 15,689 | ||
Share repurchase | (59,420) | ||||
Dividend declared | (62,668) | ||||
Net income | 274,457 | 224,884 | 193,013 | ||
Capital injection of noncontrolling interests | 4,871 | 39,579 | |||
Repurchase share from noncontrolling interest | (255) | ||||
Foreign currency translation adjustment | (46,331) | (72,193) | 12,006 | ||
Unrealized gain on available-for-sale securities, net of tax effect of nil | 22,544 | 35,636 | 21,940 | ||
Ending Balance | $ 1,680,948 | $ 1,404,572 | 1,220,348 | $ 1,680,948 | |
Ending Balance, shares | 158,379,387 | 158,379,387 | 158,379,387 | ||
Parent Company [Member] | Beijing New Oriental Xuncheng Network Technology Company Limited [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Capital injection of noncontrolling interests | $ 74 | ||||
Parent Company [Member] | Beijing Chao Yang District Taiyanggong Kindergarten of Stars [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Capital injection of noncontrolling interests | 218 | ||||
Parent Company [Member] | Common Shares [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Beginning Balance | $ 1,584 | $ 1,584 | $ 1,584 | ||
Beginning Balance, shares | 157,439,397 | 156,486,763 | 157,758,666 | ||
Reissuance of treasury stock for the exercises of employee share options, shares | 48,047 | 240,304 | 953,514 | ||
Reissuance of treasury stock for Non-vested equity shares vested, shares | 200,000 | 712,330 | 575,432 | ||
Share repurchase, shares | (2,800,849) | ||||
Ending Balance | $ 1,584 | $ 1,584 | $ 1,584 | $ 1,584 | |
Ending Balance, shares | 157,687,444 | 157,439,397 | 156,486,763 | 157,687,444 | |
Parent Company [Member] | Additional Paid-in Capital [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Beginning Balance | $ 223,422 | $ 141,653 | $ 174,009 | ||
Reissuance of treasury stock for the exercises of employee share options | 256 | 2,428 | 11,353 | ||
Reissuance of treasury stock for Non-vested equity shares vested | (2) | (7) | (6) | ||
Share based compensation expense | 20,287 | 16,810 | 15,689 | ||
Share repurchase | (59,392) | ||||
Capital injection of noncontrolling interests | 4,871 | 39,579 | |||
Repurchase share from noncontrolling interest | (255) | ||||
Equity restructuring of Xuncheng | 23,214 | ||||
Ending Balance | 249,126 | 223,422 | 141,653 | $ 249,126 | |
Parent Company [Member] | Additional Paid-in Capital [Member] | Beijing New Oriental Xuncheng Network Technology Company Limited [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Capital injection of noncontrolling interests | 74 | ||||
Parent Company [Member] | Additional Paid-in Capital [Member] | Beijing Chao Yang District Taiyanggong Kindergarten of Stars [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Capital injection of noncontrolling interests | 218 | ||||
Parent Company [Member] | Treasury Stock [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Beginning Balance | (9) | (19) | (6) | ||
Reissuance of treasury stock for the exercises of employee share options | 3 | 9 | |||
Reissuance of treasury stock for Non-vested equity shares vested | 2 | 7 | 6 | ||
Share repurchase | (28) | ||||
Ending Balance | (7) | (9) | (19) | (7) | |
Parent Company [Member] | Retained Earnings [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Beginning Balance | 1,116,627 | 977,625 | 784,612 | ||
Dividend declared | (62,668) | ||||
Net income | 274,457 | 224,884 | 193,013 | ||
Equity restructuring of Xuncheng | (23,214) | ||||
Ending Balance | 1,391,084 | 1,116,627 | 977,625 | 1,391,084 | |
Parent Company [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Beginning Balance | 62,948 | 99,505 | 65,559 | ||
Foreign currency translation adjustment | (46,331) | (72,193) | 12,006 | ||
Unrealized gain on available-for-sale securities, net of tax effect of nil | 22,544 | 35,636 | 21,940 | ||
Ending Balance | $ 39,161 | $ 62,948 | $ 99,505 | $ 39,161 | |
[1] | On July 22, 2014, the Company's board of directors authorized the repurchase of up to US$120,000 of the Company's shares during the period from July 28, 2014 through March 31, 2015. 2,800,849 shares were repurchased in the year ended May 31, 2015. | ||||
[2] | On July 19, 2015, the Company declared a special cash dividend in the amount of US$0.4 per ADS. The aggregate amount of cash dividend paid was US$62,668, which was funded by retained earnings. The dividend was fully paid on October 7, 2015 to shareholders of record at the close of business on September 4, 2015. | ||||
[3] | In January 2016, Beijing New Oriental Xuncheng Network Technology Co., Ltd. ("Xuncheng"), a subsidiary of the Group, transformed from a limited liability company to a joint stock limited company. The Group's accumulated retained earnings and statutory reserve related to Xuncheng were reclassified to additional paid-in-capital in the consolidation financials statements. |
Schedule I - Condensed Finan115
Schedule I - Condensed Financial Information of Parent Company - Statements of Changes in Equity (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale securities, tax effect | $ 3,762 | ||
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale securities, tax effect | $ 0 | $ 0 | $ 0 |
Schedule I - Condensed Finan116
Schedule I - Condensed Financial Information of Parent Company - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 274,457 | $ 224,884 | $ 193,013 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Equity in earnings of subsidiaries | 3,289 | 4,425 | 1,537 |
Share-based compensation expense | 20,287 | 16,810 | 15,689 |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | (14,796) | (7,711) | (22,503) |
Accrued expenses and other current liabilities | 35,774 | 47,945 | 11,120 |
Amounts due from/to related parties | 8 | (1,887) | 1,994 |
Net cash (used in) provided by operating activities | 618,137 | 517,894 | 374,145 |
Cash flows from investing activities | |||
Payment for available-for-sale investments | (43,498) | (78,764) | (26,076) |
Proceed from investment withdrawn in Dajie.com | 540 | ||
Net cash used in investing activities | (672,264) | (309,737) | (173,417) |
Cash flows from financing activities: | |||
Proceeds from issuance of common shares upon exercise of share options | 542 | 2,176 | 11,332 |
Cash paid for shares repurchase | (59,420) | ||
Cash paid for dividend | (62,668) | ||
Net cash (used in) provided by financing activities | 9,349 | 5,503 | (44,297) |
Net change in cash and cash equivalents | (68,191) | 177,911 | 159,705 |
Cash and cash equivalents at beginning of year | 709,209 | 531,298 | 371,593 |
Cash and cash equivalents at end of year | 641,018 | 709,209 | 531,298 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income | 274,457 | 224,884 | 193,013 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Equity in earnings of subsidiaries | (292,571) | (241,615) | (205,974) |
Dividend received from subsidiaries | 43,417 | 49,984 | |
Share-based compensation expense | 20,287 | 16,810 | 15,689 |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | 5,404 | 5,135 | (2,613) |
Accrued expenses and other current liabilities | (2,341) | (3,673) | (2,728) |
Amounts due from/to related parties | (40,207) | (1,446) | (762) |
Net cash (used in) provided by operating activities | 8,446 | 50,079 | (3,375) |
Cash flows from investing activities | |||
Investments in term deposits | (10,000) | ||
Payment for available-for-sale investments | (1,000) | (9,500) | (10,300) |
Proceed from investment withdrawn in Dajie.com | 540 | ||
Loan to related parties | 1,487 | (6,423) | |
Investment in a subsidiary | (8,500) | ||
Repayment from related parties | 8,512 | ||
Net cash used in investing activities | (9,500) | (8,961) | (16,723) |
Cash flows from financing activities: | |||
Proceeds from issuance of common shares upon exercise of share options | 542 | 2,176 | 11,332 |
Loan from a related party | 8,610 | 75,060 | |
Cash paid for shares repurchase | (59,420) | ||
Cash paid for dividend | (62,668) | ||
Net cash (used in) provided by financing activities | 542 | (51,882) | 26,972 |
Net change in cash and cash equivalents | (512) | (10,764) | 6,874 |
Cash and cash equivalents at beginning of year | 11,984 | 22,748 | 15,874 |
Cash and cash equivalents at end of year | $ 11,472 | $ 11,984 | $ 22,748 |
Schedule I - Related Party Tran
Schedule I - Related Party Transactions - Related Party Balances (Detail) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Amount due to related parties: | ||
Subtotal of amount due to related parties | $ 48 | $ 42 |
Parent Company [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 56,965 | 16,758 |
Amount due to related parties: | ||
Subtotal of amount due to related parties | 83,642 | 83,642 |
Parent Company [Member] | Winner Park [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 12 | 12 |
Parent Company [Member] | Abundant State Limited [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 40,000 | |
Amount due to related parties: | ||
Subtotal of amount due to related parties | 81,798 | 81,798 |
Parent Company [Member] | Elite Concept Holdings Limited [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 10,104 | 9,897 |
Amount due to related parties: | ||
Subtotal of amount due to related parties | 357 | 357 |
Parent Company [Member] | Koolearn Holding Limited [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 180 | 180 |
Parent Company [Member] | New Oriental China [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 6,669 | 6,669 |
Parent Company [Member] | Smart Shine [Member] | ||
Amount due to related parties: | ||
Subtotal of amount due to related parties | $ 1,487 | $ 1,487 |