Document and Entity Information
Document and Entity Information | 12 Months Ended |
May 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | May 31, 2016 |
Document Fiscal Year Focus | 2,016 |
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 | 157,439,397 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 | |
Current assets | |||
Cash and cash equivalents | $ 709,209 | $ 531,298 | |
Restricted cash | 110 | 944 | |
Term deposits | 86,706 | 69,091 | |
Short-term investments | 819,229 | 599,935 | |
Accounts receivable, net of allowance of US$801 and US$408 as of May 31, 2015 and 2016, respectively | 3,747 | 4,222 | |
Inventory | 27,303 | 23,983 | |
Deferred tax assets | [1] | 17,988 | |
Prepaid expenses and other current assets, net | 99,677 | 97,833 | |
Amounts due from related parties, current | 4,539 | 3,586 | |
Long-term investments due within one year | 118,816 | ||
Total current assets | 1,869,336 | 1,348,880 | |
Restricted cash, non-current | 3,811 | 2,481 | |
Property and equipment, net | 237,698 | 231,463 | |
Land use rights, net | 3,906 | 4,262 | |
Amounts due from related parties, non-current | 1,741 | 1,497 | |
Long-term deposit | 14,901 | 15,268 | |
Long-term prepaid rent | 235 | 424 | |
Deferred tax assets, non-current | [1] | 24,341 | 5,040 |
Intangible assets | 2,618 | 3,919 | |
Goodwill | 10,545 | 11,194 | |
Long-term investments | 178,863 | 325,991 | |
Other non-current assets | 6,839 | 1,118 | |
Total assets | 2,354,834 | 1,951,537 | |
Current liabilities | |||
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to the Company of US$17,809 and US$21,318 as of May 31, 2015 and 2016, respectively) | 21,395 | 17,888 | |
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$157,466 and US$192,332 as of May 31, 2015 and 2016, respectively) | 217,044 | 178,803 | |
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to the Company of US$25,028 and US$30,899 as of May 31, 2015 and 2016, respectively) | 32,806 | 25,376 | |
Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entities without recourse to the Company of US$1,995 and US$29 as of May 31, 2015 and 2016, respectively) | 42 | 1,995 | |
Deferred revenue (including deferred revenue of the consolidated variable interest entities without recourse to the Company of US$470,903 and US$616,299 as of May 31, 2015 and 2016, respectively) | 646,903 | 501,170 | |
Total current liabilities | 918,190 | 725,232 | |
Deferred tax liabilities, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to the Company of US$1,600 and US$1,432 as of May 31, 2015 and 2016, respectively) | [1] | 1,982 | 2,461 |
Total liabilities | 920,172 | 727,693 | |
Commitments and Contingencies | |||
Equity | |||
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2015 and 2016; 158,379,387 shares issued as of May 31, 2015 and 2016; 156,486,763 and 157,439,397 shares outstanding as of May 31, 2015 and 2016, respectively) | 1,584 | 1,584 | |
Treasury stock | (9) | (19) | |
Additional paid-in capital | 223,422 | 141,653 | |
Statutory reserves | 184,697 | 153,610 | |
Retained earnings | 931,930 | 824,015 | |
Accumulated other comprehensive income | 62,948 | 99,505 | |
Total New Oriental Education & Technology Group Inc. shareholders' equity | 1,404,572 | 1,220,348 | |
Noncontrolling interests | 30,090 | 3,496 | |
Total equity | 1,434,662 | 1,223,844 | |
Total liabilities and equity | $ 2,354,834 | $ 1,951,537 | |
[1] | The Group chose to early adopt ASU 2015-17 and classified all deferred tax assets and liability as noncurrent as of May 31,2016. The Group did not retrospectively apply the changes to prior years. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 408 | $ 801 |
Accounts payable, consolidated variable interest entity without recourse | 21,318 | 17,809 |
Accrued expenses and other current liabilities, consolidated variable interest entity without recourse | 192,332 | 157,466 |
Income taxes payable, consolidated variable interest entity without recourse | 30,899 | 25,028 |
Amounts due to related parties, consolidated variable interest entity without recourse | 29 | 1,995 |
Deferred revenue, consolidated variable interest entity without recourse | 616,299 | 470,903 |
Deferred tax liabilities, non-current consolidated variable interest entity without recourse | $ 1,432 | $ 1,600 |
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 | 157,439,397 | 156,486,763 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
NET REVENUES | |||
Educational programs and services | $ 1,309,339 | $ 1,102,974 | $ 1,006,198 |
Books and others | 169,009 | 143,792 | 132,689 |
Total net revenues | 1,478,348 | 1,246,766 | 1,138,887 |
Operating costs and expenses | |||
Cost of revenues | (614,364) | (526,320) | (451,669) |
Selling and marketing | (197,897) | (188,483) | (169,062) |
General and administrative | (471,010) | (378,434) | (324,210) |
Total operating costs and expenses | (1,283,271) | (1,093,237) | (944,941) |
Gain on disposal of subsidiaries | 3,760 | 3,621 | |
OPERATING INCOME | 198,837 | 153,529 | 197,567 |
OTHER INCOME, NET | |||
Interest income | 66,861 | 66,605 | 44,880 |
Miscellaneous income, net | 1,586 | 342 | 752 |
Income before income tax expense and loss from equity method investments | 267,284 | 220,476 | 243,199 |
Provision for income taxes: | |||
Current | (39,467) | (31,552) | (28,235) |
Deferred | 1,936 | 5,331 | 2,193 |
Provision for income taxes | (37,531) | (26,221) | (26,042) |
Loss from equity method investments | (4,425) | (1,537) | (1,453) |
Net income | 225,328 | 192,718 | 215,704 |
Add: Net loss (gain) attributable to noncontrolling interests | (444) | 295 | |
Net income attributable to New Oriental Education & Technology Group Inc. | $ 224,884 | $ 193,013 | $ 215,704 |
Net income per share (Note 16) | |||
- Basic | $ 1.43 | $ 1.23 | $ 1.38 |
- Diluted | $ 1.43 | $ 1.23 | $ 1.37 |
Weighted average shares used in calculating basic net income per share | 156,782,439 | 156,438,606 | 156,033,992 |
Weighted average shares used in calculating diluted net income per share | 157,391,686 | 157,302,174 | 157,903,464 |
Share-based compensation expense included in: | |||
Share-based compensation expense | $ 16,810 | $ 15,689 | $ 20,079 |
General and Administrative Expense [Member] | |||
Share-based compensation expense included in: | |||
Share-based compensation expense | $ 16,810 | $ 15,689 | $ 20,079 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 225,328 | $ 192,718 | $ 215,704 |
Other comprehensive income, net of tax | |||
Foreign currency translation adjustment | (72,464) | 12,006 | (17,894) |
Unrealized gain on available-for-sale securities, net of tax effect of nil, nil and nil for years ended May 31, 2014, 2015 and 2016, respectively | 36,635 | 21,940 | 586 |
Other comprehensive (loss) / income | (35,829) | 33,946 | (17,308) |
Comprehensive income | 189,499 | 226,664 | 198,396 |
Less: comprehensive (loss) / income attributable to non-controlling interests | 1,172 | (295) | |
Comprehensive income | $ 188,327 | $ 226,959 | $ 198,396 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain on available-for-sale securities, tax effect |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ 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 Interest [Member] | |||||
Beginning Balance at May. 31, 2013 | $ 857,252 | $ 1,573 | $ 164,336 | $ (17) | $ 82,867 | $ 107,723 | $ 500,770 | $ 857,252 | ||||||
Beginning Balance, shares at May. 31, 2013 | 156,695,987 | |||||||||||||
Issuance of ADS shares for the exercises of employee share options | 7,848 | $ 11 | 7,837 | 7,848 | ||||||||||
Reissuance of treasury stock for the exercises of employee share options | 13,524 | 13,514 | 10 | 13,524 | ||||||||||
Reissuance of treasury stock for the exercises of employee share options, shares | 1,014,727 | |||||||||||||
Reissuance of treasury stock for the vesting of non-vested equity shares | (8) | 8 | ||||||||||||
Reissuance of treasury stock for the vesting of non-vested equity shares, shares | 810,052 | |||||||||||||
Share-based compensation expense | 20,079 | 20,079 | 20,079 | |||||||||||
Transfer to statutory reserves | 22,145 | (22,145) | ||||||||||||
Dividend declared | [1] | (54,476) | (14,891) | (39,585) | (54,476) | |||||||||
Share repurchase | [2] | $ (16,865) | (16,858) | (7) | (16,865) | |||||||||
Share repurchase, shares | (762,100) | (762,100) | [2] | |||||||||||
Net income | $ 215,704 | 215,704 | 215,704 | |||||||||||
Foreign currency translation adjustment | (17,894) | (17,894) | (17,894) | |||||||||||
Unrealized gain on available-for-sale securities, net of tax effect of nil | 586 | 586 | 586 | |||||||||||
Ending Balance at May. 31, 2014 | 1,025,758 | $ 1,584 | 174,009 | (6) | 65,559 | 129,868 | 654,744 | 1,025,758 | ||||||
Ending 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 | [3] | $ (59,420) | (59,392) | (28) | (59,420) | |||||||||
Share repurchase, shares | (2,800,849) | (2,800,849) | [3] | |||||||||||
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 securities, net of tax effect of nil | 21,940 | 21,940 | 21,940 | |||||||||||
Capital injections of noncontrolling interests | 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 | 158,379,387 | 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 | 2,208,545 | 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 | 2,097,814 | 712,330 | ||||||||||||
Share-based compensation expense | $ 16,810 | 16,810 | 16,810 | |||||||||||
Transfer to statutory reserves | 31,853 | (31,853) | ||||||||||||
Dividend declared | [4] | (62,668) | (62,668) | (62,668) | ||||||||||
Equity restructuring of Xuncheng | (766) | 23,214 | [5] | (766) | [5] | (22,448) | [5] | |||||||
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 securities, net of tax effect of nil | 36,635 | 35,636 | 35,636 | 999 | ||||||||||
Capital injections of noncontrolling interests | 68,498 | 39,579 | 39,579 | 28,919 | ||||||||||
Repurchase shares from noncontrolling interest | (3,752) | (255) | (255) | (3,497) | ||||||||||
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 | ||||||||||||
[1] | On July 23, 2013, the Company declared a special cash dividend in the amount of US$0.35 per ADS. The aggregate amount of cash dividend paid was US$54,476, of which US$39,585 and US$14,891 were funded by retained earnings and additional paid in capital, respectively. The dividend was fully paid on October 7, 2013 to shareholders of record at the close of business on September 6, 2013. | |||||||||||||
[2] | On April 23, 2013, the Company's board of directors authorized the repurchase of up to US$50,000 of the Company's shares during the period from April 29, 2013, through July 31, 2013 to facilitate the future vesting of options or non-vested equity shares. 1,683,400 and 762,100 shares were repurchased in the years ended May 31, 2013 and 2014, respectively. | |||||||||||||
[3] | 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. | |||||||||||||
[4] | 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$62,668, which was funded by retained earnings. The dividend was fully paid on October 7, 2015 to shareholders of record at the close of business on September 4, 2015. | |||||||||||||
[5] | In January 2016, Beijing New Oriental Xuncheng Network Technology Co., Ltd. ("Xuncheng"), a subsidiary of the Group, transformed from a limited liability company to a joint stock limited company. The Group's accumulated retained earnings and statutory reserve related to Xuncheng were reclassified to additional paid-in-capital in the consolidation financials statements. |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) | 12 Months Ended | |||
May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | |
Unrealized gain on available-for-sale securities, tax effect | ||||
Special cash dividend declared per share | $ 0.4 | $ 0.35 | ||
Cash paid for dividend | $ 62,668,000 | $ 54,476,000 | ||
Shares repurchase approved amount | $ 120,000,000 | $ 50,000,000 | ||
Shares repurchases, shares | 2,800,849 | 762,100 | 1,683,400 | |
Additional Paid-in Capital [Member] | ||||
Cash paid for dividend | $ 14,891,000 | |||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Unrealized gain on available-for-sale securities, tax effect | ||||
Retained Earnings [Member] | ||||
Cash paid for dividend | 62,668,000 | 39,585,000 | ||
Total New Oriental Education & Technology Group Inc. Shareholders' Equity [Member] | ||||
Unrealized gain on available-for-sale securities, tax effect | ||||
Fiscal Year 2014 Dividend [Member] | ||||
Special cash dividend declared date | Jul. 23, 2013 | |||
Dividend payment date | Oct. 7, 2013 | |||
Shareholders date of record | Sep. 6, 2013 | |||
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, 2016 | May 31, 2015 | May 31, 2014 | |
Cash flows from operating activities | |||
Net income | $ 225,328 | $ 192,718 | $ 215,704 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property and equipment | 47,281 | 46,663 | 43,578 |
Amortization of intangible assets | 1,122 | 607 | 113 |
Amortization of land use rights | 112 | 116 | 117 |
Loss on disposal of property and equipment | 2,061 | 2,904 | 2,023 |
Gain on disposal of subsidiaries | (3,760) | (3,621) | |
Share-based compensation expense | 16,810 | 15,689 | 20,079 |
Allowance for doubtful accounts | 904 | 680 | 254 |
Loss from equity method investments | 4,425 | 1,537 | 1,453 |
Deferred income taxes | (1,936) | (5,548) | (2,193) |
Changes in operating assets and liabilities | |||
Accounts receivables | (187) | (2,096) | 443 |
Prepaid expenses and other current assets | (7,711) | (22,503) | (20,168) |
Inventory | (5,649) | (1,750) | (481) |
Long-term deposit | (532) | (2,598) | (207) |
Long-term prepaid rent | 169 | 668 | 157 |
Accounts payable | 4,830 | 9,248 | 272 |
Accrued expenses and other current liabilities | 47,945 | 11,120 | 44,775 |
Income taxes payable | 7,878 | 7,607 | 1,286 |
Deferred revenue | 179,583 | 117,086 | 60,722 |
Amounts due to related parties | (1,887) | 1,994 | (1,097) |
Amounts due from related parties | 1,108 | 3 | (1,864) |
Net cash provided by (used in) operating activities | 517,894 | 374,145 | 361,345 |
Cash flows from investing activities | |||
Restricted cash paid for establishing new schools and subsidiaries | (5,461) | (2,055) | (3,282) |
Release of restricted cash for establishing new schools and subsidiaries | 4,747 | 976 | 2,537 |
Investments in bank deposits maturing over three months | (64,540) | (32,703) | (72,497) |
Settlement of bank deposits maturing over three months | 42,603 | 62,924 | 22,187 |
Investments in short-term held-to-maturity investments | (1,112,172) | (943,476) | (1,849,087) |
Settlement of short-term held-to-maturity investments | 851,250 | 992,117 | 1,698,643 |
Purchase of property and equipment | (64,401) | (55,318) | (31,703) |
Proceeds from disposal of property and equipment | 1,310 | 1,738 | 946 |
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) | ||
Payments for available-for-sale investments (Note 12) | (78,764) | (26,076) | (16,076) |
Payments for equity method investments (Note 12) | (468) | (10,955) | |
Purchase of held-to-maturity investments (Note 12) | (145,415) | (96,045) | |
Settlement of held-to-maturity investments | 115,178 | ||
Proceeds from disposal of cost method investment | 540 | ||
Loan provided to related parties | (2,575) | ||
Net cash used in investing activities | (309,737) | (173,417) | (344,377) |
Cash flows from financing activities | |||
Proceeds from issuances of common shares upon exercise of share option | 2,176 | 11,332 | 21,849 |
Cash paid for shares repurchased | (59,420) | (21,487) | |
Cash paid for dividend | (62,668) | (54,476) | |
Capital contribution from noncontrolling interests | 69,747 | 3,791 | |
Repurchase shares from noncontrolling interests | (3,752) | ||
Net cash (used in) provided by financing activities | 5,503 | (44,297) | (54,114) |
Effects of exchange rate changes | (35,749) | 3,274 | (8,427) |
Net change in cash and cash equivalents | 177,911 | 159,705 | (45,573) |
Cash and cash equivalents at beginning of year | 531,298 | 371,593 | 417,166 |
Cash and cash equivalents at end of year | 709,209 | 531,298 | 371,593 |
Supplement disclosure of cash flow information | |||
Income taxes paid | 32,037 | 23,896 | 26,987 |
Non-cash investing and financing activities: | |||
Payable for purchase of property and equipment | 11,953 | 7,433 | 6,018 |
Payable for acquisition of China Management Software Institute | $ 4,594 | ||
Payable for long-term available-for-sale investment | $ 1,452 | ||
Dianshijingwei [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) $ in Thousands | May 31, 2015USD ($) |
China Management Software Institute [Member] | |
Purchase of business, cash acquired | $ 68 |
Qingdao Alice [Member] | |
Purchase of business, cash acquired | $ 2,306 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
May 31, 2016 | |
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, Beijing 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 English and other foreign language training, test preparation courses for admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. As of May 31, 2016, 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 development and distribution and other consulting services Beijing Pioneer Technology Company Limited (“Beijing Pioneer”) January 8, 2009 PRC 100% Educational software development and distribution and other consulting services Shanghai Smart Words Software Technology Company Limited (“Shanghai Smart Words”) December 8, 2010 PRC 100% Educational consulting and software development Beijing Smart Wood Software Technology Company Limited (“Beijing Smart Wood”) December 21, 2011 PRC 100% Educational consulting and software development Beijing Joy Tend Technology Company Limited (“Beijing Joy Tend”) January 31, 2013 PRC 100% Educational consulting and software development Name Date of Place of Legal Principal activity Subsidiaries of the Company: Beijing Right Time Technology Company Limited (“Beijing Right Time”) January 31, 2013 PRC 100% Educational consulting and software Beijing Sincerity Technology Company Limited (“Beijing Sincerity”) January 31, 2013 PRC 100% Educational consulting and software Beijing Magnificence Technology Company Limited (“Beijing Magnificence”) November 1, 2013 PRC 100% Educational consulting and software Beijing Top Technology Company Limited (“Beijing Top”) November 13, 2013 PRC 100% Educational consulting and software Beijing Shenghe Technology Company Limited (“Beijing Shenghe”) May 27, 2014 PRC 100% Educational consulting and software 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 Beijing Chongshengdongfang Network Technology Co., Ltd. (“Chongshengdongfang”) December 24, 2014 PRC 100% Educational consulting and software Beijing New Oriental Stars Education & Consulting Co., Ltd (“Stars”) July 11, 2007 PRC 100% Kindergarten Beijing Chao Yang District Kindergarten of Stars (“ChaoYang Kindergarten”) November 9, 2007 PRC 100% Kindergarten Nanjing Yuhuatai District New Oriental Kindergarten of Stars (“Nanjing Kindergarten”) February 20, 2009 PRC 100% Kindergarten Qingdao Alice Education & Technology Company Limited (“Qingdao Alice “) August 21, 2014 PRC 100% Kindergarten Name Date of Place of Legal Principal activity Subsidiaries of the Company: Qingdao Laoshan District Happy Alice Kindergarten (“Laoshan Alice”) December 4, 2014 PRC 100% Kindergarten Qingdao Happy Alice Kindergarten (“Qingdao Happy Alice”) November 29, 2005 PRC 100% Kindergarten Qingdao Chengyang District Happy Alice Kindergarten (“Chengyang Alice”) October 30, 2014 PRC 100% Kindergarten 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”) May 30, 2014 BVI 100% Educational Consulting Koolearn Corporation (“Koolearn Cayman”) June 10, 2013 Cayman 100% On-line Education Koolearn Holding Limited (“Koolearn HK”) June 21, 2013 Hong Kong 100% Educational Consulting Variable interest entity of the Company: Beijing 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 Name Date of Place of Legal Principal activity Schools and subsidiaries of New Oriental China: 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 Name Date of Place of Legal Principal activity 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 Name Date of Place of Legal Principal activity Schools and subsidiaries of New Oriental China: 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 (“Jinzhou School”) April 19, 2016 PRC N/A Language education 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 Name Date of Place of Legal Principal activity Schools and subsidiaries of New Oriental China: Beijing New Oriental Yangzhou Foreign Language School June 6, 2002 PRC N/A Primary secondary school education 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 school education Beijing New Oriental Dogwood Cultural Communications Co., Ltd. May 16, 2003 PRC N/A Sales of educational materials and products Beijing New Oriental Dogwood, Bookstore, Audio & Video Co., Ltd. March 2, 2004 PRC N/A Sales of educational materials and products Chengdu New Oriental Dogwood Bookstore Products Co., Ltd. January 18, 2004 PRC N/A Sales of educational materials and products Chongqing New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. February 25, 2004 PRC N/A Sales of educational materials and products Shenyang new Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. September 18, 2003 PRC N/A Sales of educational materials and products 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 materials and products Xi’an New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. June 3, 2003 PRC N/A Sales of educational materials and products Shanghai Dogwood Bookstore & Audio-Visual Products Co., Ltd. September 28, 2003 PRC N/A Sales of educational materials and products Changchun New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. October 8, 2005 PRC N/A Sales of educational materials and products Ha’er Bin New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. March 13, 2006 PRC N/A Sales of educational materials and products Taiyuan New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. July 12, 2006 PRC N/A Sales of educational materials and products Name Date of Place of Legal Principal activity Schools and subsidiaries of New Oriental China: Hangzhou Dogwood Bookstore Products Co., Ltd July 25, 2007 PRC N/A Sales of educational materials and products 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 Lanzhou New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd October 28, 2008 PRC N/A Sales of educational Shijiazhuang New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd July 28, 2009 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 Xiamen New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd December 8, 2011 PRC N/A Sales of educational Hohhot Dogwood Bookstore & Audio-Visual Products Co., Ltd February 7, 2012 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 Name Date of Place of Legal Principal activity Schools and subsidiaries of New Oriental China: 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 Consulting Beijing New Oriental Vision Overseas Service Co., Ltd. February 24, 2016 PRC N/A Consulting Beijing New Oriental Dogwood Advertisement Co., Ltd. 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 education Leci Internet Technology (Beijing) Company Limited February 11, 2014 PRC N/A Educational consulting and Beijing Dongfangzhuoyong Investment Management Co., Ltd. April 29, 2014 PRC N/A Investment 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 (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 China. The Company’s offshore holding companies are not educational institutions and do not provide educational services outside 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 agreements with its schools and subsidiaries pursuant to which each of the schools and subsidiaries may use the trademarks in China by paying license fees. This license is valid from May 14, 2006 to December 31, 2050, subject to the renewal every ten years upon the expiration of the trademark registration. (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 or five-year automatic renewal without consent of the WFOEs. The remaining agreements can be renewed by both parties to the agreements. (iv) Sale of educational software agreements. Eight WFOEs, namely Beijing Hewstone, Beijing Pioneer, Beijing Smart Wood, Shanghai Smart Words, Beijing Joy Tend, Beijing Magnificence, Beijing Top and Beijng Shenghe, 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 automatic renewal terms, and schools and subsidiaries of New Oriental China cannot terminate the agreements without the consent of the WFOEs in China. Master exclusive service agreements. 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. Exclusive option agreement Power of Attorney. VIE Arrangements between Xuncheng and the Company’s subsidiary During the fiscal year ended May 31, 2015, 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 the 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 15.1% of the total common shares outstanding as of May 31, 2016. 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 China with respect to an aggregate of 100% of the equity interests in New Oriental China. 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, 2015 2016 US$ US$ Total current assets 753,306 1,262,811 Total non-current assets 511,051 381,262 Total assets 1,264,357 1,644,073 Total current liabilities 673,201 860,877 Total non-current liabilities 1,600 1,432 Total liabilities 674,801 862,309 Years ended May 31, 2014 2015 2016 US$ US$ US$ Net revenues 1,121,205 1,221,101 1,443,851 Net income 266,497 265,485 313,828 Net cash provided by operating activities 371,458 357,893 450,848 Net cash used in investing activities (240,427 ) (167,847 ) (286,235 ) Net cash provided by financing activities — — 69,747 The VIEs contributed an aggregate of 98.4%, 97.9% and 97.7% of the consolidated net revenues for the years ended May 31, 2014, 2015 and 2016, respectively. The Company’s operations not conducted through contractual arrangements with the VIEs primarily consist of the leasing of its commercial property. As of the fiscal years ended May 31, 2015 and 2016, the VIEs accounted for an aggregate of 64.8% and 69.8%, respectively, of the consolidated total assets, and 92.7% and 93.7%, respectively, of the consolidated total liabilities. The assets were not associated with the VIEs primarily consist of cash and cash equivalents, prepaid expenses, short-term investments and long-term investments. There are no consolidated VIEs’ assets that are collateral for the VIEs’ obligations |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
May 31, 2016 | |
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’ subsidiaries and schools. 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, fair value of long-term available-for-sale investments and share-based compensation. Actual results could differ from those estimates. 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 interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. 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 investments with the maturity of less than one year. The Group’s short-term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. The Group reviews its held-to-maturity investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its short-term investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Group’s intent and ability to hold the investments. OTTI is recognized as a loss in the consolidation statement of operation. 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 nun-current based or when the funds will be released in accordance with the terms of the respective agreement. 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, 2015 2016 US$ US$ Beginning balance 265 801 Charge during the year 676 235 Written-off (140 ) (628 ) Ending balance 801 408 Inventory Inventory is stated at the lower of cost or market 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 years 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, 2014, 2015 and 2016. 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 goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. 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 no impairment loss on goodwill for any of the periods presented. Long-term investments The Group’s long-term investments consist of cost method investments, equity method investments, available-for-sale investments and held-to-maturity 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 recognize as income for 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 nil, US$2 and nil impairment losses on its cost method investments during the years ended May 31, 2014, 2015 and 2016, 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, 2014, 2015 and 2016, respectively. c) Available-for-sale securities Investments For investments in investees’ stocks which are determined to be debt securities, the Group accounts for them as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. 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. (d) Long-term held-to-maturity investment 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. Value added tax (“VAT”) Pursuant to the PRC tax laws, in case of any product sales, generally the value added tax (“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 educational programs and services in short-term training schools are subject to a simple VAT collection method and apply for a 3% VAT rate. Therefore, the Group’s non-academic educational programs and services in short-term language training schools which were previously subject to business tax are now subject to VAT. VAT is reported as a deduction to revenue when incurred. 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$39,909, US$45,664 and US$52,993 for the years ended May 31, 2014, 2015 and 2016, respectively. 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, 2014, 2015 and 2016, 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 fixed discount to the face value of the cards. Online-learning card sales represent prepaid service fees received from students for e-learning services. The prepaid service fee is recorded as deferred revenue upon receiving the upfront payment. Revenue is recognized upon actual usage of the cards by the students based on the number of minutes the students use the e-learning services, of which the actual usage is tracked by the Group on an individual basis. Upon the expiration of the online-learning card, which ranges from six months to one year from the date of sale of the card to the distributor, the Group will recognize the remaining unused minutes as revenue. (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. Total advertising expenses were US$41,952, US$38,295 and US$39,753 for the years ended May 31, 2014, 2015 and 2016, 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$1,437, US$1,230 and US$494 for the years ended May 31, 2014, 2015 and 2016, 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$512,887 and US$747,762 as of May 31, 2015 and 2016, 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 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 including cash equivalents and available-for sales securities at fair value on a recurring basis as of May 31, 2015 and 2016. Cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. As of May 31, 2015 and 2016, the available-for-sale securities recorded in long-term investments include redeemable preferred shares, common shares of a listed company, convertible bond and assets management plan and trust (Refer to Note 12). Those were measured and recorded at fair value on a recurring basis in periods subsequent to their initial recognition and are as follows: May 31, 2015 Description Quoted Prices in Significant Other Significant Total US$ US$ US$ US$ Available for sales investments: Common Shares 16,950 — — 16,950 Redeemable preferred shares — 50,157 — 50,157 Total 16,950 50,157 — 67,107 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 The Company measured the fair value of its investment 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 as of May 31, 2016 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 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, the Company generally adopts a market approach which 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 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 year ended May 31, 2016, the Group transferred two redeemable preferred shares for a total of US$63,881 from level 2 to level 3 as the Company changed its fair value measurement for those two investees. Specifically, the Company changed its measurement method from recent transactions to a market approach described in the previous paragraph to determine the investment’s fair value as no recent transactions were available as of May 31, 2016. The following table provides additional information about the reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs (level 3). Available-for-sale US$ 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 Measured fair value on a nonrecurring basis Long-term investments other than investments classified as available-for-sale, goodwill and other intangible assets are measured at fair value on a nonrecurring basis when an impairment is recognized. The Group measured long-term investments other than investments classified as available-for-sale, and 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 recognized nil, US$2 and nil impairment loss related to investments, goodwill and acquired intangible assets for the years ended May 31, 2014, 2015 and 2016, respectively. The fair value was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection of discounted future cash flow and the discount rate. Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, term deposits, restricted cash, short-term held-to-maturity investments, accounts receivable, amount due from/to related parties, available-for-sale securities investments, long-term held-to-maturity investment and accounts payable. Available-for-sale investments are carried at fair value. The carrying amounts of cash and cash equivalents, term deposits, restricted cash, short-term held-to-maturity investments, accounts receivable, amount due from/to related parties, and accounts payable approximate their fair values due to the short-term maturities of these instruments. Long-term held-to-maturity investment is stated at its amortized cost. 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 bases 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 securities and foreign currency translation adjustments. Comprehensive income is reported in the consolidated statements of comprehensive income. 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 capital. The Group uses the binomial option pricing model to measure the fair value of options granted and the quoted market price of the Company’s equity shares to measure the fair value of non-vested equity shares (“NES”) granted to employees at each measurement date. The binomial option pricing model is adopted because the Group believes that considering the possibility of exercise of an option over the life of the option, as affected by the reality of changing stock prices and non-constant risk free rates, would better reflect the measurement objective of relevant accounting literature. 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 hi |
Business Acquisition
Business Acquisition | 12 Months Ended |
May 31, 2016 | |
Business Combinations [Abstract] | |
Business Acquisition | 3. BUSINESS ACQUISITION Acquisition of China Management Software Institute On September 1, 2012, the Group acquired a 100% equity interest in CMSI, which was mainly focused on providing software and computer education training service in China for a total consideration of US$18,000 within three years by installments and a present value of US$17,455. The Company has fully paid the consideration as of May 31, 2015. The Group intended to use its land and building to expand current business of another school. The software and computer education training service of CMSI would be terminated when current students graduated. The acquisition was recorded using the acquisition method of accounting and, accordingly, the acquired assets and liabilities were recorded at their fair market value at the date of acquisition. The purchase price was allocated as at the date of acquisition as follows: US$ Amortization Cash 68 Other current assets 14 Buildings 16,095 23.3-45.3 years Property, plant and equipment 103 1-5 years Land use right 1,008 38.5 years Intangible assets Student base 110 1.75 years Goodwill 1,829 Other current liabilities (45 ) Deferred tax liabilities (1,727 ) Total 17,455 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 |
Disposal of Subsidiaries
Disposal of Subsidiaries | 12 Months Ended |
May 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal of Subsidiaries | 4. DISPOSAL OF SUBSIDIARIES Disposal of Boost Caring In March 2014, the Group sold its 100% equity interest in Beijing Boost Caring Education &Consulting Co., Ltd (“Boost Caring”) to Beijing MaxEn International Education Consulting Co., Ltd (“MaxEn”) which is a 65% owned joint venture of the Group, for a cash consideration of US$1,560 which was collected in August 2015. As of the disposal date, Boost Caring had accumulated deficit resulting in the Group deriving a gain from the deconsolidation. The disposal gain recognized by the Group was US$3,254 and was recorded in the consolidated statements of operations for the year ended May 31, 2014. Disposal of North Star In May 2014, the Group sold 100% equity interest in Beijing New Oriental North Star Training School (“North Star”) to MaxEn, for a cash consideration of US$364. As of the disposal date, North Star had accumulated deficit resulting in the Group deriving a gain from the deconsolidation. The disposal gain recognized by the Group was US$367 and was recorded in the consolidated statements of operations for the year ended May 31, 2014. As of May 31, 2016, the Group has not received the consideration and recorded the balance in amount due from related parties. The Group considered these transactions as related parties’ transaction and disclosed the transactions in Note 17. After the disposals, the Group retained indirect significant influence in Boost Caring and North Star through MaxEn. 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, of which US$1,520 was collected as of May 31, 2016. 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$3,760 and was recorded in the consolidated statements of operations for the year ended May 31, 2016. Subsequent to this disposal, the Group accounted for its 49% investment in Dianshijingwei as an equity method investment because the Group retained the ability to exercise significant influence. The disposal of Dianshijingwei did not represent a strategic shift and did not have a major effect on the Group’s operation. The disposal gains from these transactions were presented as continuing operation. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
May 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | 5. SHORT-TERM INVESTMENTS Short-term investments consist of various fixed-income financial products purchased from Chinese banks and trusts and are classified as held-to-maturity investments as the Group has the positive intent and ability to hold the investments to maturity. The maturities of these financial products range from one month to less than one year, with interest rates ranging from 2.6% to 7.0%. They are classified as short-term investments on the consolidated balance sheets as their contractual maturity dates are equal to or less than one year. While these fixed-income financial products are not publicly traded, the Company estimated that their fair value approximate their amortized costs considering their short-term maturities and high credit quality. No OTTI loss was recognized for the years ended May 31, 2014, 2015 and 2016, respectively. Short-term investments consisted of the following: As of May 31, 2015 2016 US$ US$ Held-to-maturity investments 599,935 819,229 |
Inventory
Inventory | 12 Months Ended |
May 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | 6. INVENTORY Inventory consisted of the following: As of May 31, 2015 2016 US$ US$ Course materials in schools 7,383 5,787 Publications in bookstores 16,600 21,516 23,983 27,303 Inventory was marked down to the lower of cost or market value, in the amount of US$513 and US$638 for the years ended May 31, 2015 and 2016, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
May 31, 2016 | |
Text Block [Abstract] | |
Prepaid Expenses and Other Current Assets | 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of May 31, 2015 2016 US$ US$ Prepaid rent 35,973 33,135 Advances to suppliers 19,134 23,143 Interest receivable 6,490 9,341 Rental deposit 3,370 7,122 Receivable from the settlement bank for the proceeds of exercise of options and withholding tax 7,636 5,548 Prepaid advertising fees 3,652 3,250 Staff advances (a) 4,589 2,829 Value added taxes recoverable 1,979 2,534 Deposit of advertising & decoration 1,255 1,961 Receivable of social insurance 1,127 1,374 Prepaid property taxes and other taxes 830 616 Others (b) 11,798 8,824 97,833 99,677 (a) Staff advances were provided to staff for traveling and related use which are expensed as incurred and staff allowance for on-site enrollment activities. (b) Others primarily included maintenance fees, other receivables and other miscellaneous prepayments. |
Intangible Assets
Intangible Assets | 12 Months Ended |
May 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. INTANGIBLE ASSETS Intangible assets consisted of the following: As of May 31, 2015 2016 US$ US$ Costs: Intangible assets with indefinite lives: Trademark 264 248 Intangible assets with finite lives: Trademark 1,081 1,293 Courseware 50 47 Student base 2,093 1,978 Favorable lease 1,049 713 License 415 415 4,952 4,694 Accumulated amortization: Trademark (256 ) (383 ) Courseware (50 ) (47 ) Student base (569 ) (1,404 ) Favorable lease (60 ) (123 ) License (98 ) (119 ) (1,033 ) (2,076 ) Net carrying amount: Intangible assets with indefinite lives: Trademark 264 248 Intangible assets with definite lives: Trademark 825 910 Courseware — — Student base 1,524 574 Favorable lease 989 590 License 317 296 3,919 2,618 Amortization expenses for the intangible assets for the years ended May 31, 2014, 2015 and 2016, were US$113, US$607 and US$1,122, respectively. As of May 31, 2016, the Group expects to record amortization expenses related to intangible assets US$806, US$231, US$209, US$201 and US$201 for the years ended May 31, 2017, 2018, 2019, 2020, 2021, respectively, and US$722 thereafter. |
Goodwill
Goodwill | 12 Months Ended |
May 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. GOODWILL As of May 31, 2015 2016 US$ US$ Costs: Beginning balance 3,692 11,194 Acquisition of Qingdao Alice 7,540 — Exchange differences (38 ) (649 ) Ending balance 11,194 10,545 Accumulated goodwill impairment loss: Beginning balance — — Ending balance — — Goodwill, net 11,194 10,545 |
Property and Equipment
Property and Equipment | 12 Months Ended |
May 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 10. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: As of May 31, 2015 2016 US$ US$ Buildings 145,159 146,411 Transportation equipment 8,084 8,553 Furniture and education equipment 72,820 76,492 Computer equipment and software 36,502 40,707 Leasehold improvements 152,929 169,345 415,494 441,508 Less: accumulated depreciation (186,612 ) (209,937 ) Construction in-process 2,581 6,127 231,463 237,698 Depreciation expense for the years ended May 31, 2014, 2015 and 2016 was US$43,578, US$46,663, and US$47,281 respectively. |
Land Use Rights
Land Use Rights | 12 Months Ended |
May 31, 2016 | |
Text Block [Abstract] | |
Land Use Rights | 11. LAND USE RIGHTS Land use rights consisted of the following: As of May 31, 2015 2016 US$ US$ Land use rights 5,497 5,178 Less: accumulated amortization (1,089 ) (1,201 ) Exchange differences (146 ) (71 ) Land use rights, net 4,262 3,906 Amortization expenses for land use rights for the years ended May 31, 2014, 2015 and 2016 were US$117, US$116 and US$112, respectively. The Group expects to recognize US$109 in amortization expense for each of the next five years and US$3,361 thereafter. |
LONG TERM INVESTMENTS
LONG TERM INVESTMENTS | 12 Months Ended |
May 31, 2016 | |
Investments Schedule [Abstract] | |
LONG TERM INVESTMENTS | 12. LONG-TERM INVESTMENTS Long-term investments consisted of the following: As of May 31, 2015 2016 US$ US$ Cost method investments: Dajie.com Ltd (“Dajie.com”) (a) 2,000 1,460 Equity method investments: Beijing Dongfangheli Investment and Development Ltd. (“Dongfangheli”) (b) 3,967 3,451 Beijing Zhishang Education & Technology Co., Ltd. (“Zhishang Education”) (c) 2,313 1,164 Juesheng Education Group Ltd. (“Juesheng.com”) (d) — 3,249 Suzhou Qingrui Education & Technology Co., Ltd. (“Kou100”) (e) — 3,261 Other Joint Ventures 3,124 2,474 Available-for-sale securities investments: Shanghai Golden Education & Training Co. Ltd. (“Golden Finance”) (f) 3,398 34,242 Alo7.com Limited (“Alo7.com”) (g) 27,935 29,639 AVIC Trust Tianqi No.556 (“Trust 556”) (h) — 16,037 Tarena International, Inc. (“Tarena”) (i) 16,950 15,945 Beijing ShangJiaChongYe Education & Technology Co. Ltd.(“Shangjiachongye”) (j) — 12,310 Juesheng.com (d) 7,440 — Beijing ROBOROBO Technology Co. Ltd. (“ROBOROBO”) (k) 4,356 9,999 Lele Global Limited (“Lele”) (l) — 8,500 Special assets management plan - GuotaiYuanxin & New Oriental (“Assets management plan”) (m) — 7,376 Beijing Yule World Network Technology Co. Ltd. (“STEMedu.cn”) (n) — 5,992 Beijing TangFengHanYu Education & Technology Co. Ltd. (“Tangfeng”) (o) — 5,980 Other investments 7,028 17,784 Held-to-maturity investments:(p) 247,480 — 325,991 178,863 (a) In September 2011, the Group signed a share subscription agreement to invest US$2,000 for 5% equity ownership interest in Dajie.com. The fair value of Dajie.com’s equity ownership interest was not readily determinable and the Group did not have the ability to exercise significant influence over the operating and financial policies of Dajie.com. Accordingly, the investment in Dajie.com was accounted for as a cost-method investment. In March 2016, the Company disposed part of equity ownership interest for US$540 and reinvested into Dajie.com’s VIE. The new investment was classified as available-for-sale security as the Company determined that the shares were debt security due to the redemption option available to the investee and accordingly measured the investment at fair value. (b) 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, because the Group has the ability to exercise significant influence but does not have control over the investee. (c) In July 2014, the Group invested US$2,662 to acquire 55% equity interest in Zhishang Education, an online professional educational training platform. The Group has concluded that it does not have control over Zhishang Education because other investors have significant participating rights, but determined that it has the ability to exercise significant influence. Therefore the Group used the equity method to account for the investment. (d) 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 11.88% equity interests. These investments were classified as available-for-sale securities 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 in-substance 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 in common share using the equity method as the Group determined that it can exercise significant influence over Juesheng.com. (e) 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 security 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 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 in-substance 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 in common share using the equity method as the Group determined that it can exercise significant influence over Kouyu100. (f) 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. The investment was classified as available-for-sale security as the Group 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 gains of nil and US$19,407 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively. (g) 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 for convertible and redeemable preferred shares. These investments were classified as available-for-sale securities as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. As of May 31, 2016, the Company had 17.16% equity interests in Alo7.com on an as-converted basis. Unrealized holding gains of US$631, US$13,428 and US$1,704 were reported in other comprehensive income for the years ended May 31, 2014, 2015 and 2016, respectively. (h) 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 long-term investment as the Group determined that the shares were debt securities and unrealized holding gains of US$383 was reported in other comprehensive income for the year ended May 31, 2016. (i) In March 2014, the Group invested US$13,500 in Tarena, which is a service provider of IT professional education in China, for 2.96% ownership. This investment was classified as available-for-sale securities as Tarena is a NASDAQ listed company and the Group measured the investment subsequently at fair value. Unrealized holding loss of US$45, gain of US$3,495 and loss of US$1,005 were reported in other comprehensive income for the years ended May 31, 2014, 2015 and 2016, respectively. (j) 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. The investment was classified as available-for-sale security and measured at fair value. As there was no operation change or significant transaction occurred since the transaction date, the initial purchase price was considered the fair value of this investment as of May 31, 2016. (k) 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. The investment was classified as available-for-sale security as the Group 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 gains of nil and US$5,643 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively. (l) In September 2015, the Group invested US$8,500 to acquire 48,796,296 shares of Series B-1 convertible redeemable preferred shares for an 8.5% equity interests of Lele. Lele provides online learning and tutoring services for students from kindergarten through 12th grade. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. No unrealized holding gain or loss was reported in other comprehensive income for the year ended May 31, 2016 as the Group determined that there was no operation changes or significant transactions at the investee between the investment date and May 31, 2016. (m) In August 2015, the Group invested US$7,315 in an Assets management plan with a maturity of five years. The investment is managed together with another similar investment held by Mr. Yu and some other employees in the Group. The investment was classified as available-for-sale security as the Group determined that the investment was a debt security and measured the investment subsequently at fair value. Unrealized holding gains of US$61 was reported in other comprehensive income for the year ended May 31, 2016. (n) In July 2015, the Group invested US$2,844 to acquire 36% equity interest in STEMedu.cn, a company engaging in the business of providing service of education training. The investment was classified as available-for-sale security as the Group 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$3,148 was reported in other comprehensive income for the year ended May 31, 2016. (o) In November 2015, the Group entered into an investment agreement with Tangfeng which engages in the business of Chinese training to acquire 6% equity interest with a total cash consideration of US$1,831. The investment was classified as available-for-sale security as the Group 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$4,149 was reported in other comprehensive income for the year ended May 31, 2016. (p) The Group’s long-term held-to-maturity investments consist of trusts guaranteed by banks with the maturity more than one year, which are stated at their amortized cost. The trusts were invested in April, June and September 2014 with the amounts of US$96,805, US$80,671 and US$64,537, respectively, and interest income of US$1,404 and US$20,882 and US$20,771 was recognized in the consolidated statements of operations for the years ended May 31, 2014, 2015 and 2016, respectively. As of May 31, 2016, US$118,816 of the held-to-maturity investments were reclassified to long-term investments due within one year. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
May 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: As of May 31, 2015 2016 US$ US$ Accrued payroll 103,270 131,151 Payable for purchase of property and equipment 7,433 11,953 Amounts reimbursable to employees (a) 5,418 8,294 Individual taxes withholding 8,148 8,186 Refundable fees received from students (b) 10,023 5,755 Business taxes payable 9,701 5,259 Value added taxes payable 1,147 6,506 Accrued advertising fees 8,210 6,443 Rent payable 3,883 6,285 Welfare payable 6,213 6,004 Royalty fees payable (c) 2,565 3,637 Refundable deposit (d) 1,956 3,161 Accrued professional service fees 1,683 2,352 Other taxes payable 1,887 1,240 Investment payable (e) 1,452 — Others (f) 5,814 10,818 Total 178,803 217,044 (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 learning programs and those to counterparties for copyright and resource sharing. (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) The balance as of May 31, 2015 represents a payable for an available-for-sale investment in ROBOROBO, which was fully paid in July 2015. (f) 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, 2016 | |
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. As of May 31, 2016, the Company has transferred 16,000,000 common shares to its depositary bank to be issued to employees and non-employees upon the exercise of their vested share options or upon the vesting of NES. During the years ended May 31, 2013, 2014 and 2015, the Company has repurchased 1,683,400, 762,100 and 2,800,849 common shares, respectively, from the open market and the shares are reserved for the employees and non-employees to exercise of their vested share options and NES in future. The share repurchase program has been completed in April 2015. As of May 31, 2016, 939,990 treasury shares remain for future issuance upon the exercise of share options and vesting of NES. The Company recorded total share-based compensation of US$20,079, US$15,689 and US$16,810 during the years ended May 31, 2014, 2015 and 2016, respectively. Share options The following table summarizes information regarding the share options granted: Share options Shares granted Grant-date Exercise US$ 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 vesting increments per year. As of May 31, 2016, 11,285,510 common shares out of the 16,000,000 common shares had been issued to employees and non-employees upon the exercise of their share options, and 2,208,545 shares out of the 5,246,349 treasury shares had been reissued to employees and non-employees upon exercise of their share options. In January 2016, the 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, 2016, no award has been granted under 2016 Share Incentive Plan. A summary of share options activity under 2006 Share Incentive Plan for years ended May 31, 2014, 2015 and 2016 was as follows: Weighted Weighted remaining Aggregated US$ years US$ Options outstanding at May 31, 2013 3,637,249 9.27 6.39 47,503 Granted — — Exercised (2,113,094 ) 8.37 Forfeited (252,000 ) 12.19 Options outstanding at May 31, 2014 1,272,155 10.18 6.20 19,898 Granted — — Exercised (953,514 ) 11.81 Forfeited — — Options outstanding at May 31, 2015 318,641 5.30 1.92 5,903 Granted — — Exercised (240,304 ) 5.03 Forfeited — — Options outstanding at May 31, 2016 78,337 6.13 0.58 2,829 Options vested and expect to vest at May 31, 2016 78,337 6.13 0.58 2,829 Options exercisable at May 31, 2016 78,337 6.13 0.58 2,829 The total intrinsic value of share options exercised during the years ended May 31, 2014, 2015 and 2016 were US$34,578, US$5,249 and US$4,802, respectively. No new share options was granted during the years ended May 31, 2014, 2015 and 2016, respectively. As of May 31, 2016, no unrecognized compensation expense related to share options. NES The following table summarizes information regarding NES: NES Grant-date fair value and US$ Grant date: January 24, 2008 2,720,000 12.75 March 11, 2008 152,000 14.00 July 1, 2008 278,500 13.75 Oct 28, 2008 3,200 12.65 May 15, 2009 205,548 12.75 June 15, 2009 316,200 15.13 May 26, 2010 556,848 21.75 June 10, 2011 811,020 25.11 July 23, 2012 1,956,935 12.19 May 27, 2013 208,590 20.33 July 19, 2013 19,830 22.80 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 Total 8,608,671 In May 2010, the Company granted 556,848 NES to employees which is eligible to vest between June 2010 to June 2015. In June 2011, the Company granted 811,020 NES to employees which is eligible to vest between November 2011 to May 2014. In July 2012, the Company granted 1,956,935 NES to employees which is eligible to vest between May 2013 to May 2015. In May 2013, the Company granted 208,590 NES to employees which is eligible to vest on May 31, 2014. In July 2013, the Company granted 19,830 NES to employees which is eligible to vest on May 31, 2014. 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. As of May 31, 2016, 4,714,490 common shares out of the 16,000,000 common shares had been issued to employees and non-employees upon the vesting of their NES, and 2,097,814 shares out of the 5,246,349 treasury shares had been reissued to employees and non-employees upon the vesting of their NES. A summary of NES activities under 2006 Share Incentive Plan for the years ended May 31, 2014, 2015 and 2016 was as follows: Number Weighted- US$ NES outstanding at May 31, 2013 1,510,970 13.45 Granted 19,830 22.80 Vested (810,052 ) 14.30 Forfeited (100,818 ) 14.97 NES outstanding at May 31, 2014 619,930 12.39 Granted 833,670 19.26 Vested (575,432 ) 15.44 Forfeited (271,768 ) 13.23 NES outstanding at May 31, 2015 606,400 18.55 Granted 546,330 22.66 Vested (712,330 ) 21.39 Forfeited (40,400 ) 20.61 NES outstanding at May 31, 2016 400,000 18.91 NES vested and expect to vest at May 31, 2016 400,000 18.91 The total fair value of shares vested during the year ended May 31, 2016 was US$15,235. The weighted average grant date fair value of NES granted during the years ended May 31, 2014, 2015 and 2016 was US$22.80, US$19.26 and US$22.66 respectively. As of May 31, 2016, total unrecognized compensation expense for NES of US$3,388 is expected to be recognized over a weighted average period of 1.22 years. |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. INCOME TAXES Significant components of provision for income taxes for the years ended May 31, 2014, 2015 and 2016 were as follows: Years ended May 31, 2014 2015 2016 US$ US$ US$ Current: PRC 28,235 31,552 39,467 Deferred: PRC (2,193 ) (5,331 ) (1,936 ) Total provision for income taxes 26,042 26,221 37,531 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$55,587 and US$75,898 during the years ended May 31, 2015 and 2016. The withholding tax of US$5,559 and US$7,590 in connection with the dividends were fully paid during the years ended May 31, 2015 and 2016, respectively. The Company’s PRC subsidiaries and the VIEs are subject to the 25% standard enterprise income tax except for those accepted as deemed profit method enterprises, or qualified for small-scale enterprises, or granted preferential tax treatment. Enterprises that qualify as a high and new technology enterprise (“HNTE”) are subject to a tax rate of 15%. Beijing Decision, Beijing Hewstone and Xuncheng continued to qualify as HNTE in Beijing and were subject to a tax rate of 15% during the years ended May 31, 2014, 2015 and 2016. Beijing Pioneer qualified as HNTE and enjoys a tax rate of 15% since January 2015. Enterprises that qualify as the “newly established software enterprise” (“NESE”) are exempt from EIT for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years. Beijing Pioneer, Shanghai Smart Words, Beijing Smart Wood, Beijing Right Time, Beijing Joy Tend, Beijing Top, Beijing Magnificence and Beijing Shenghe were qualified as NESE and enjoyed the EIT tax benefit that began from January 2010, January 2011, January 2012, January 2013, January 2013, January 2014, January 2015 and January 2014, respectively. Beijing Haidian School was not required by the governing tax bureau to pay any EIT since its establishment through May 31, 2016. If Beijing Haidian School is required to pay EIT in future, this could have material impact to the Group’s consolidated financial statements. However, the Group believes that it is more likely than not that any change to the tax treatment of Beijing Haidian School shall be prospectively applied. Significant components of the Group’s deferred tax assets and liabilities were as follows (1): As of May 31, 2015 2016 US$ US$ Current deferred tax assets Allowance doubtful accounts 205 — Accrued expenses 15,990 — Deferred revenue for incentive plan 2,382 — Total current deferred tax assets 18,577 — Less: valuation allowance (589 ) — Current deferred tax assets, net 17,988 — Non-current deferred tax assets Allowance doubtful accounts — 252 Accrued expenses — 18,427 Deferred revenue for incentive plan — 2,376 Net operating loss carry-forwards 7,403 6,910 Total non-current deferred tax assets 7,403 27,965 Less: valuation allowance (2,363 ) (3,624 ) Non-current deferred tax assets, net 5,040 24,341 Non-current deferred tax liabilities Acquired of non-current assets (2,461 ) (1,982 ) Total non-current deferred tax liabilities (2,461 ) (1,982 ) (1) The Group chose to early adopt ASU 2015-17 and classified all deferred tax assets and liability as noncurrent as of May 31,2016. The Group did not retrospectively apply the changes to prior years. 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$3,624 as of May 31, 2016, or an increase of US$672 from $2,952 as of May 31, 2015. As of the year ended May 31, 2016, the Group had net operating loss carried forward of US$39,270 from the Company’s PRC subsidiaries and VIEs, which will expire on various dates from May 31, 2017 to May 31, 2021. A reconciliation of the effective tax rates from the 25% statutory tax rates was as follows for the years ended May 31, 2014, 2015 and 2016: Years ended May 31, 2014 2015 2016 % % % Statutory tax rate 25.00 25.00 25.00 Effect of expenses not deductible for tax purposes 4.33 4.91 4.57 Effect of tax holiday (20.34 ) (20.82 ) (18.05 ) Changes in valuation allowance (0.09 ) (0.59 ) 0.25 Effect of dividend withholding tax 1.81 3.39 2.27 Total provision for income taxes 10.71 11.89 14.04 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$49,464, US$47,080 and US$47,559, the basic net income per share attributable to the Company would decrease by US$0.32 , US$0.30 and US$0.30 for the years ended May 31, 2014, 2015 and 2016, respectively, and the diluted net income per share attributable to the Company would decrease by US$0.31, US$0.30 and US$0.30 for the years ended May 31, 2014, 2015 and 2016, 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 subsidiaries, were to be determined as a PRC resident for tax purposes, they would be subject to a 25% income tax rate on their worldwide income including the income arising in jurisdictions outside the PRC. The Group does not believe that its legal entities organized outside of the PRC are considered PRC residents. If the Company were to be a non-resident for PRC tax purposes, dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax. In the case of dividends paid by PRC schools and subsidiaries to their foreign investors, the withholding tax would be 10%, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. During the year ended May 31, 2015, Shanghai Smart Words paid US$5,559 withholding tax when it paid a special dividend to Smart Shine. During the year ended May 31, 2016, Beijing Hewstone, Shanghai Smart Words and Beijing Decision paid US$7,590 withholding tax when they paid a special dividend to their parent companies, Elite Concept. Aggregate undistributed earnings of the Company’s PRC subsidiaries and VIEs that are available for distribution was US$789,338 and US$1,133,217 as of May 31, 2015 and May 31, 2016, 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, 2014, 2015 and 2016, 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$16 (RMB0.1 million) is specifically listed as a “special circumstance”). The statute of limitation for transfer pricing related issue is ten years. There is no statute of limitation in the case of tax evasion. Therefore, the Group’s PRC domiciled entities are subject to examination by the PRC tax authorities based on the above. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
May 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 16. NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share for the periods indicated: Years ended May 31, 2014 2015 2016 US$ US$ US$ Numerator used in basic and diluted net income per share: Net income attributable to New Oriental Education &Technology Group Inc. 215,704 193,013 224,884 Net income available for future distribution 215,704 193,013 224,884 Shares (denominator): Weighted average common shares outstanding used in computing basic net income per share 156,033,992 156,438,606 156,782,439 Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method 1,869,472 863,568 609,247 Weighted average common shares outstanding used in computing diluted net income per share 157,903,464 157,302,174 157,391,686 Net income per share - Basic 1.38 1.23 1.43 - Diluted 1.37 1.23 1.43 The weighted average of 2,345,395, 1,940,781 and 1,596,948 treasury shares have been excluded in computing basic net income per share for the years ended May 31, 2014, 2015 and 2016, respectively. There was no employee stock options excluded from the dilutive share calculation for the years ended May 31, 2014, 2015 and 2016 due to anti-dilutive effects. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
May 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 17. RELATED PARTY TRANSACTION The Group had the following balances and transaction with related parties: Balances: Amounts due from Notes Relationship 2015 2016 US$ US$ Metropolis Holding China Limited (1) Company controlled by 1,497 1,741 Amounts due from Amounts due to Notes Relationship 2015 2016 2015 2016 US$ US$ US$ US$ Metropolis Holding China Limited (1) Company controlled by 1,096 637 — — MaxEn (2) Joint Venture 2,490 812 1,992 13 Zhishang Education Joint Venture — 3 — Beijing Haiwei Career Services Co., Ltd (“Haiwei Career”) (3) Joint Venture — 1,553 — — Dianshijingwei (4) Long-term investee — 1,520 — — Others (5) — 17 — 29 Total 3,586 4,539 1,995 42 Transactions: Rental expense 2014 2015 2016 US$ US$ US$ Metropolis Holding China Limited (1) Company controlled by 4,173 5,298 7,139 Gain on disposal of subsidiaries 2014 2015 2016 US$ US$ US$ MaxEn (Note 4) Joint Venture 3,621 — — Loan to related parties 2014 2015 2016 US$ US$ US$ Haiwei Career (3) Joint Venture — — 1,520 Beijing Weixue Mingri Network Technology Co., Ltd.(“Weixuemingri”) (6) Joint Venture — — 998 Total — — 2,518 Revenue 2014 2015 2016 US$ US$ US$ MaxEn Joint Venture — — 177 Beijing Tongban Education & Technology Co. Ltd. (“Tongban”) Long-term investee — — 3 STEMedu.cn Long-term investee 11 Total — — 191 Cost 2014 2015 2016 US$ US$ US$ STEMedu.cn Long-term investee — — 30 (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 chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2016, the current and non-current amounts due from Metropolis Holding China Limited were US$637 and US$1,741, 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 September 2012, MaxEn became a joint venture of the Group. As a result, MaxEn became a related party of the Group thereafter. As of May 31, 2016, the amount due from MaxEn was US$812, which represented MaxEn’s pre-operating expenses of US$377 prepaid by the Group, US$91 payable to Beijing Decision for service fee and unpaid consideration of US$344 for disposal of North Star; the amount due to MaxEn was US$13, which represented miscellaneous payments paid for the Group. The amount due to MaxEn is non-interest bearing and unsecured and has no fixed repayment terms. (3) 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, 2016, the amount due from Haiwei Career, was US$1,553 in which US$1,520 represented loans from the Group to Haiwei Career with non-interest bearing for its daily operation supporting. All the loans are payable within one year. (4) 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. (5) As of May 31, 2016, the balance in “others” included the current receivables from long-term investees of Tongban, Goldern Finance and STEMedu.cn. (6) As of May 31, 2016, the Group lent non-interest bearing loan with a total amount of US$998 to Weixuemingri to support its daily operation. The Group fully wrote off the outstanding loan in the same year. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
May 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. COMMITMENTS AND CONTINGENCIES Operating leases The Group leases offices, classroom and warehouse facilities under operating leases. The terms of substantially all of these leases are ten years or less. Future minimum lease payments under non-cancelable operating leases were as follows on May 31, 2016: US$ Years ended May 31: 2017 149,265 2018 126,088 2019 98,760 2020 74,714 2021 46,702 Thereafter 51,483 547,012 Rent expense for the years ended May 31, 2014, 2015 and 2016 related to all cancelable and non-cancelable leases were US$142,032, US$157,523 and US$173,797, respectively. Capital commitments As of May 31, 2016, future minimum capital commitments under non-cancelable construction were as follows: US$ Capital commitment for the purchase of property and equipment 1,389 Capital commitment for leasehold improvements 8,038 9,427 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 these would be an adverse decision, as such, and the Group has not accrued any liabilities. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
May 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 19. NONCONTROLLING INTERESTS Koolearn Xuncheng US$ New Jinzhou Total Balance as of May 31, 2013 and 2014 — — — — — Capital injection from noncontrolling interest shareholders 3,752 — 39 — 3,791 (Loss) attributed to noncontrolling interest shareholders (294 ) — (1 ) — (295 ) Balance as of May 31, 2015 3,458 — 38 — 3,496 Capital injection from noncontrolling interest shareholders — 28,737 182 28,919 Capital repurchase from noncontrolling interest shareholders (3,497 ) — — — (3,497 ) Unrealized gain on available-for-sale securities attributed to noncontrolling interest shareholders — 999 — — 999 Foreign currency translation adjustment attributed to noncontrolling interest shareholders — (269 ) (2 ) — (271 ) Gain (loss) attributed to noncontrolling interest shareholders 39 423 3 (21 ) 444 Balance as of May 31, 2016 — 29,890 39 161 30,090 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. 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. In November 2015, the Company sold a 21% ownership of Xuncheng to seven limited partnership entities (“LPs”) representing the employees of the Group. In April 2016, the Company further sold another 12.5% ownership of Xuncheng 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. As the Group retained control over Xuncheng subsequent to the above transactions, the disposal was accounted as an equity transaction in the Company’s consolidated financial statements. Subsequent to the transaction, the Group’s interest over Xuncheng was diluted to 69.12% as of May 31, 2016. 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. |
Segment Information
Segment Information | 12 Months Ended |
May 31, 2016 | |
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 years ended May 31, 2014 and 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 education and overseas study consulting services. During the year end ended May 31, 2016, the Group further separated study tour previously included in overseas study consulting services as a separate operating segment. The seven operating segments for the year ended May 31, 2016 are identified as 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. Language training and test preparation and primary and secondary school education have been identified as reportable segments. Online education, content development and distribution, overseas study consulting services, pre-school education and study tour operating segments were aggregated as others because individually they do not exceed the 10% quantitative threshold. 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, 2014 Language Primary and Others Consolidated US$ US$ US$ US$ Net revenues 969,947 24,063 144,877 1,138,887 Operating costs and expenses: Cost of revenues (388,998 ) (8,488 ) (54,183 ) (451,669 ) Selling and marketing (112,092 ) (956 ) (34,009 ) (147,057 ) General and administrative (204,679 ) (8,748 ) (36,745 ) (250,172 ) Unallocated corporate expenses — — — (96,043 ) Total operating costs and expenses (705,769 ) (18,192 ) (124,937 ) (944,941 ) Gain on disposal of subsidiaries — — 3,621 3,621 Operating income 264,178 5,871 23,561 197,567 Segment assets 709,979 65,357 245,505 1,020,841 Unallocated corporate assets — — — 582,704 Total assets 709,979 65,357 245,505 1,603,545 For the year ended May 31, 2015 Language Primary and 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 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 |
Mainland China Contribution Pla
Mainland China Contribution Plan | 12 Months Ended |
May 31, 2016 | |
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$52,159, US$61,448 and US$71,434 for the years ended May 31, 2014, 2015 and, 2016, respectively. |
Statutory Reserve
Statutory Reserve | 12 Months Ended |
May 31, 2016 | |
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 profit to non-distributable reserve funds as determined by the Board of Directors of each company. These reserves include (i) general reserve and (ii) the development fund. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. During the years ended May 31, 2014, 2015 and 2016, US$1,029, US$530 and US$695 was accrued for the general reserve, respectively. Due to the transformation of the legal structure of Xuncheng, reserve of US$766 was reversed and transferred to paid-in capital and additional paid-in capital in the year ended May 31, 2016. PRC laws and regulations require private schools that require reasonable returns to make annual appropriations of 25% of after-tax income prior to payments of dividend to its development fund, which is to be used for the construction or maintenance of the school or procurement or upgrading of educational equipment, while in the case of a private school that does not require reasonable return, this amount should be equivalent to no less than 25% of the annual increase of net assets of the school as determined in accordance with generally accepted accounting principles in the PRC. During the years ended May 31, 2014, 2015 and 2016, appropriations to the development fund amounted to US$21,116, US$23,212 and US$31,158, respectively. These reserves are included as statutory reserves in the consolidated statements of changes in equity and comprehensive income. The Group allocated US$22,145, US$23,742 and US$ 31,853 to statutory reserves during the years ended May 31, 2014, 2015 and 2016, 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, 2016 | |
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$270,674 and US$358,956, of which US$216,526 and US$292,542 was attributed to the paid in capital and statutory reserves of the VIEs and US$54,148 and US$66,414 was attributed to the paid in capital and statutory reserves of the WFOEs, as of May 31, 2015 and 2016, respectively. The WFOEs’ accumulated profits may be distributed as dividends to the Company without the consent of a third party. The VIEs’ revenues and accumulated profits may be transferred to the Company through contractual arrangements without the consent of a third party. Under applicable PRC law, loans from PRC companies to their offshore affiliated entities require governmental approval, and advances by PRC companies to their offshore affiliated entities must be supported by bona fide business transactions. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
May 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 24. SUBSEQUENT EVENTS In January 2016, the Group invested US$12,310 in the convertible bonds issued by Shangjiachongye (Refer to Note 12). Subsequently in July 2016, the Group converted all the convertible bonds into redeemable preferred shares of Shangjiachongye for a 4.9% equity interest. In the meantime, the Group additionally invested US$12,205 into redeemable preferred shares for another 4.9% equity interest. As a result, the Group in total held redeemable preferred shares representing 9.8% equity interest and has fully paid the consideration. The Group is in the process of assessing the accounting treatment. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent Company | 12 Months Ended |
May 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Parent Company | NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. Condensed Financial Information of Parent Company Balance Sheets (In thousands, except share and share data) As of May 31, 2015 2016 US$ US$ ASSETS Current assets: Cash and cash equivalents 22,748 11,984 Term deposit — 10,000 Prepaid expense and other current assets 10,780 5,900 Amounts due from related parties 25,696 16,758 Total current assets 59,224 44,642 Long-term investments 51,902 96,498 Investments in subsidiaries and VIEs 1,194,328 1,353,090 Total assets 1,305,454 1,494,230 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other current liabilities 9,689 6,016 Amounts due to related parties 75,417 83,642 Total current liabilities 85,106 89,658 Equity: Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2015 and 2016; 158,379,387 shares issued as of May 31, 2015 and 2016; 156,486,763 and 157,439,397 shares outstanding as of May 31, 2015 and 2016, respectively) 1,584 1,584 Treasury stock (19 ) (9 ) Additional paid-in capital 141,653 223,422 Retained earnings 977,625 1,116,627 Accumulated other comprehensive income 99,505 62,948 Total shareholders’ equity 1,220,348 1,404,572 Total liabilities and equity 1,305,454 1,494,230 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company Statements of Operations (In thousands) Years ended May 31, 2014 2015 2016 US$ US$ US$ Operating costs and expenses: General and administrative 20,435 12,963 16,732 Total operating costs and expenses 20,435 12,963 16,732 Operating loss (20,435 ) (12,963 ) (16,732 ) Interest income 1 2 1 Equity in earnings of subsidiaries and VIEs 236,138 205,974 241,615 Net income 215,704 193,013 224,884 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company Statements of Comprehensive Income (In thousands) Years ended May 31, 2014 2015 2016 US$ US$ US$ Net income 215,704 193,013 224,884 Other comprehensive income, net of tax Foreign currency translation adjustment (17,894 ) 12,006 (72,193 ) Unrealized gain on available-for-sale securities, net of tax effect of nil, nil and nil for years ended May 31, 2014, 2015 and 2016 586 21,940 35,636 Other comprehensive (loss) / income (17,308 ) 33,946 (36,557 ) Comprehensive income 198,396 226,959 188,327 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. 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 Treasury Retained Accumulated Total Unrestricted shares Amount US$ US$ US$ US$ US$ US$ Balance at June 1, 2013 156,695,987 1,573 164,336 (17 ) 608,493 82,867 857,252 Issuance of ADS shares for the exercises of employee share options — 11 7,837 — — — 7,848 Reissuance of Treasury stock for the exercises of employee share options 1,014,727 — 13,514 10 — — 13,524 Reissuance of Treasury stock for Non-vested equity shares vested 810,052 — (8 ) 8 — — — Share based compensation expense — — 20,079 — — — 20,079 Dividend declared — — (14,891 ) — (39,585 ) — (54,476 ) Share repurchase (762,100 ) — (16,858 ) (7 ) — — (16,865 ) Net income — — — — 215,704 — 215,704 Foreign currency translation adjustment — — — — — (17,894 ) (17,894 ) Unrealized gain on available-for-sale securities, net of tax effect of nil — — — — — 586 586 Balance at May 31, 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 equity shares 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 securities, net of tax effect of nil — — — — — 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 equity shares 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 restructuring of Xuncheng — — 23,214 — (23,214 ) — — Foreign currency translation adjustment — — — — — (72,193 ) (72,193 ) Unrealized gain on available-for-sale securities, net of tax effect of nil — — — — — 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 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company Statements of Cash Flows (In thousands) Years ended May 31, 2014 2015 2016 US$ US$ US$ Cash flows from operating activities: Net income 215,704 193,013 224,884 Adjustments to reconcile net income to net cash provided by (used in) operating activities Equity in earnings of subsidiaries (236,138 ) (205,974 ) (241,615 ) Dividend received from subsidiaries 83,728 — 49,984 Share-based compensation expense 20,079 15,689 16,810 Changes in operating assets and liabilities: Prepaid expenses and other current assets (2,958 ) (2,613 ) 5,135 Accrued expenses and other current liabilities 4,988 (2,728 ) (3,673 ) Amounts due from/to related parties (849 ) (762 ) (1,446 ) Net cash provided by (used in) operating activities 84,554 (3,375 ) 50,079 Cash flows from investing activities Investments in term deposits — — (10,000 ) Payment for available-for-sale investments (16,076 ) (10,300 ) (9,500 ) Proceed from investment withdrawn in Dajie.com — — 540 Loan to related parties — (6,423 ) 1,487 Repayment from related parties 15,500 — 8,512 Net cash used in investing activities (576 ) (16,723 ) (8,961 ) Cash flows from financing activities: Proceeds from issuance of common shares upon exercise of share options 21,849 11,332 2,176 Loan from related party — 75,060 8,610 Loan repayment to related party (42,643 ) — — Cash paid for shares repurchase (21,487 ) (59,420 ) — Cash paid for dividend (54,476 ) — (62,668 ) Net cash (used in) provided by financing activities (96,757 ) 26,972 (51,882 ) Net (decrease) / increase in cash and cash equivalents (12,779 ) 6,874 (10,764 ) Cash and cash equivalents, beginning of year 28,653 15,874 22,748 Cash and cash equivalents, end of year 15,874 22,748 11,984 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. 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, 2015 and 2016: May 31, 2015 2016 US$ US$ Amount due from related parties: Winner Park 12 12 Smart Shine 8,512 — Elite Concept Holdings Limited 8,631 9,897 Koolearn Holdings Limited — 180 New Oriental China 8,541 6,669 25,696 16,758 Amount due to related parties: Elite Concept Holdings Limited 357 357 Abundant State Limited 75,060 81,798 Smart Shine — 1,487 75,417 83,642 All related party balances were non-interest bearing and unsecured. |
Significant Accounting Polici36
Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2016 | |
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’ subsidiaries and schools. 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, fair value of long-term available-for-sale investments and share-based compensation. Actual results could differ from those estimates. |
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 interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. 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 investments with the maturity of less than one year. The Group’s short-term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. The Group reviews its held-to-maturity investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its short-term investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Group’s intent and ability to hold the investments. OTTI is recognized as a loss in the consolidation statement of operation. |
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 nun-current based or when the funds will be released in accordance with the terms of the respective agreement. |
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, 2015 2016 US$ US$ Beginning balance 265 801 Charge during the year 676 235 Written-off (140 ) (628 ) Ending balance 801 408 |
Inventory | Inventory Inventory is stated at the lower of cost or market 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 years 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, 2014, 2015 and 2016. |
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 goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. 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 no impairment loss on goodwill for any of the periods presented. |
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 recognize as income for 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 nil, US$2 and nil impairment losses on its cost method investments during the years ended May 31, 2014, 2015 and 2016, 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, 2014, 2015 and 2016, respectively. |
Available-for-sale securities Investments | c) Available-for-sale securities Investments For investments in investees’ stocks which are determined to be debt securities, the Group accounts for them as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. 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. |
Long-term held-to-maturity investment | (d) Long-term held-to-maturity investment 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. |
Value added tax ("VAT") | Value added tax (“VAT”) Pursuant to the PRC tax laws, in case of any product sales, generally the value added tax (“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 educational programs and services in short-term training schools are subject to a simple VAT collection method and apply for a 3% VAT rate. Therefore, the Group’s non-academic educational programs and services in short-term language training schools which were previously subject to business tax are now subject to VAT. VAT is reported as a deduction to revenue when incurred. |
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$39,909, US$45,664 and US$52,993 for the years ended May 31, 2014, 2015 and 2016, respectively. 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, 2014, 2015 and 2016, 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 fixed discount to the face value of the cards. Online-learning card sales represent prepaid service fees received from students for e-learning services. The prepaid service fee is recorded as deferred revenue upon receiving the upfront payment. Revenue is recognized upon actual usage of the cards by the students based on the number of minutes the students use the e-learning services, of which the actual usage is tracked by the Group on an individual basis. Upon the expiration of the online-learning card, which ranges from six months to one year from the date of sale of the card to the distributor, the Group will recognize the remaining unused minutes as revenue. (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. Total advertising expenses were US$41,952, US$38,295 and US$39,753 for the years ended May 31, 2014, 2015 and 2016, 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$1,437, US$1,230 and US$494 for the years ended May 31, 2014, 2015 and 2016, 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$512,887 and US$747,762 as of May 31, 2015 and 2016, 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 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 including cash equivalents and available-for sales securities at fair value on a recurring basis as of May 31, 2015 and 2016. Cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. As of May 31, 2015 and 2016, the available-for-sale securities recorded in long-term investments include redeemable preferred shares, common shares of a listed company, convertible bond and assets management plan and trust (Refer to Note 12). Those were measured and recorded at fair value on a recurring basis in periods subsequent to their initial recognition and are as follows: May 31, 2015 Description Quoted Prices in Significant Other Significant Total US$ US$ US$ US$ Available for sales investments: Common Shares 16,950 — — 16,950 Redeemable preferred shares — 50,157 — 50,157 Total 16,950 50,157 — 67,107 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 The Company measured the fair value of its investment 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 as of May 31, 2016 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 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, the Company generally adopts a market approach which 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 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 year ended May 31, 2016, the Group transferred two redeemable preferred shares for a total of US$63,881 from level 2 to level 3 as the Company changed its fair value measurement for those two investees. Specifically, the Company changed its measurement method from recent transactions to a market approach described in the previous paragraph to determine the investment’s fair value as no recent transactions were available as of May 31, 2016. The following table provides additional information about the reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs (level 3). Available-for-sale US$ 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 Measured fair value on a nonrecurring basis Long-term investments other than investments classified as available-for-sale, goodwill and other intangible assets are measured at fair value on a nonrecurring basis when an impairment is recognized. The Group measured long-term investments other than investments classified as available-for-sale, and 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 recognized nil, US$2 and nil impairment loss related to investments, goodwill and acquired intangible assets for the years ended May 31, 2014, 2015 and 2016, respectively. The fair value was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection of discounted future cash flow and the discount rate. |
Fair value of financial instruments | Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, term deposits, restricted cash, short-term held-to-maturity investments, accounts receivable, amount due from/to related parties, available-for-sale securities investments, long-term held-to-maturity investment and accounts payable. Available-for-sale investments are carried at fair value. The carrying amounts of cash and cash equivalents, term deposits, restricted cash, short-term held-to-maturity investments, accounts receivable, amount due from/to related parties, and accounts payable approximate their fair values due to the short-term maturities of these instruments. Long-term held-to-maturity investment is stated at its amortized cost. |
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 bases 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 securities and foreign currency translation adjustments. Comprehensive income is reported in the consolidated statements of comprehensive income. |
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 capital. The Group uses the binomial option pricing model to measure the fair value of options granted and the quoted market price of the Company’s equity shares to measure the fair value of non-vested equity shares (“NES”) granted to employees at each measurement date. The binomial option pricing model is adopted because the Group believes that considering the possibility of exercise of an option over the life of the option, as affected by the reality of changing stock prices and non-constant risk free rates, would better reflect the measurement objective of relevant accounting literature. 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 adjustment in the period of change and will impact the amount of share-based compensation expense to be recognized in future periods. |
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, 2016, 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 2014, 2015 and 2016, respectively. |
Newly adopted accounting pronouncements | Newly adopted accounting pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued a new pronouncement which amends to change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2014. Early adoption is permitted. The Group adopted this ASU on June 1, 2015 and the effects of the pronouncement have been reflected in the consolidated financial statements. In November, 2015, the FASB issued a new pronouncement which changes how deferred taxes are classified on organizations’ balance sheets. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. For public companies, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. This ASU may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Group elected to early adopt this new guidance on a prospective basis and have applied the changes to all deferred tax liabilities and assets and to the consolidated balance sheet as of May 31, 2016. The Group did not retrospectively apply the changes to prior periods. |
Recently issued accounting pronouncements not yet adopted | Recently issued accounting pronouncements not yet adopted In May 2014, FASB issued a new pronouncement which affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. 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, 2017, including interim periods within that reporting period. Early application will be permitted. An entity should apply the amendments in this ASU using one of the following two methods: 1. Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients: • For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period. • For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods. • For all reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue. 2. Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. If an entity elects this transition method it also should provide the additional disclosures in reporting periods that include the date of initial application of: • The amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change. • An explanation of the reasons for significant changes. The Group is in the process of evaluating the impact of this pronouncement to its consolidated financial statements. In June 2014, the FASB issued a new pronouncement which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation—Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this ASU either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this ASU as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. In addition, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. The Group does not expect the adoption of this pronouncement will have a significant effect on its consolidated financial position or results of operations. In February 2015, the FASB issued a new pronouncement which is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU focuses on the consolidation evaluation for reporting organizations (public and private companies and not-for-profit organizations) that are required to evaluate whether they should consolidate certain legal entities. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification (“Codification”) and improves current GAAP by: • Placing more emphasis on risk of loss when determining a controlling financial interest. A reporting organization may no longer have to consolidate a legal entity in certain circumstances based solely on its fee arrangement, when certain criteria are met. • Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE). • Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The ASU will be effective for periods beginning after December 15, 2015, for public companies. Early adoption is permitted, including adoption in an interim period. The Group does not expect the adoption of this pronouncement will have a significant effect on its consolidated financial position or results of operations. In September 2015, the FASB issued a new pronouncement ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments eliminate the requirement to retrospectively account for those adjustments. Under this ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The ASU also requires acquirers to present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The ASU must be applied prospectively to adjustments to provisional amounts that occur after the effective date. Early adoption is permitted for financial statements that have not been issued. The Company does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. In January 2016, the FASB issued a new pronouncement ASU 2016-01 which is intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. 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 No. 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Group is in the process of evaluating the impact that this pronouncements on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, simplifying the Transition to the Equity Method of Accounting. The amendments eliminate the requirement that when an investment qualified for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previous held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increase in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Group is in the process of evaluating the impact that this pronouncements on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, which amends the principal-versus-agent implementation guidance and illustrations in the Board’s new revenue standard (ASC 606). The amendments in this update clarify the implementation guidance on principal versus agent considerations. When another party, along with the reporting entity, is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide that good or service to the customer (as a principal) or to arrange for the good or service to be provided to the customer by the other party (as an agent). The guidance is effective for interim and annual periods beginning after December 15, 2017. The Group is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). The new guidance simplifies certain aspects related to income taxes, statement of cash flows, and forfeitures when accounting for share-based payment transactions. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2016, with earlier adoption permitted. Certain of the amendments related to timing of the recognition of tax benefits and tax withholding requirements should be applied using a modified retrospective transition method. Amendments related to the presentation of the statement of cash flows should be applied retrospectively. All other provisions may be applied on a prospective or modified retrospective basis. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application will be permitted. The Group is in the process of evaluating the impacts of the adoption of this ASU on its consolidated financial statements. In April 2016, the FASB issued a new pronouncement ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The core principle of the guidance in Topic 606 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: 1. Identify the contract(s) with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in this update do not change the core principle of the guidance in Topic 606. Rather, the amendments clarify certain aspects related to identifying the performance obligation in the contract and the licensing implementation guidance while retaining the related principles. The Group is in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements. In May, 2016, the FASB issued a new pronouncement ASU 2016-12 which provides clarifying guidance in certain narrow areas and add some practical expedients as discussed below. The amendments clarify the objective of the collectability criterion in Step 1. The objective of this assessment is to determine whether the contract is valid and represents a substantive transaction on the basis of whether a customer has the ability and intention to pay the promised consideration in exchange for the goods or services that will be transferred to the customer. The amendments also add a new criterion to paragraph 606-10-25-7 to clarify when revenue would be recognized for a contract that fails to meet the criteria in Step 1. That criterion allows an entity to recognize revenue in the amount of consideration received when the entity has transferred control of the goods or services, the entity has stopped transferring goods or services (if applicable) and has no obligation under the contract to transfer additional goods or services, and the consideration received from the customer is nonrefundable. The amendments permit an entity, as an accounting policy election, to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price. The amendments specify that the measurement date for noncash consideration is contract inception. The amendments also clarify that the variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration. The amendments provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. The amendments clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application. Accounting for elements of a contract that do not affect revenue under legacy GAAP are irrelevant to the assessment of whether a contract is complete. In addition, the amendments permit an entity to apply the modified retrospective transition method either to all contracts or only to contracts that are not completed contracts. The amendments clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. However, an entity is still required to disclose the effect of the changes on any prior periods retrospectively adjusted. The effective date and transition of these amendments is the same as the effective date and transition of ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The Group is in the process of evaluating the impact of adoption of this pronouncements on its consolidated financial statements. In August 2016, the FASB issued new pronouncements ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments in this Update provide guidance on the following specific cash flow issues such as: (1) Contingent Consideration Payments Made after a Business Combination; (2) Distributions Received from Equity Method Investees. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Group does not expect the adoption of this pronouncement will have a significant effect on its consolidated financial position or results of operations. |
Organization and Principal Ac37
Organization and Principal Activities (Tables) | 12 Months Ended |
May 31, 2016 | |
Accounting Policies [Abstract] | |
Details of Company's Subsidiaries and VIE and Its Subsidiaries | As of May 31, 2016, 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 development and distribution and other consulting services Beijing Pioneer Technology Company Limited (“Beijing Pioneer”) January 8, 2009 PRC 100% Educational software development and distribution and other consulting services Shanghai Smart Words Software Technology Company Limited (“Shanghai Smart Words”) December 8, 2010 PRC 100% Educational consulting and software development Beijing Smart Wood Software Technology Company Limited (“Beijing Smart Wood”) December 21, 2011 PRC 100% Educational consulting and software development Beijing Joy Tend Technology Company Limited (“Beijing Joy Tend”) January 31, 2013 PRC 100% Educational consulting and software development Name Date of Place of Legal Principal activity Subsidiaries of the Company: Beijing Right Time Technology Company Limited (“Beijing Right Time”) January 31, 2013 PRC 100% Educational consulting and software Beijing Sincerity Technology Company Limited (“Beijing Sincerity”) January 31, 2013 PRC 100% Educational consulting and software Beijing Magnificence Technology Company Limited (“Beijing Magnificence”) November 1, 2013 PRC 100% Educational consulting and software Beijing Top Technology Company Limited (“Beijing Top”) November 13, 2013 PRC 100% Educational consulting and software Beijing Shenghe Technology Company Limited (“Beijing Shenghe”) May 27, 2014 PRC 100% Educational consulting and software 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 Beijing Chongshengdongfang Network Technology Co., Ltd. (“Chongshengdongfang”) December 24, 2014 PRC 100% Educational consulting and software Beijing New Oriental Stars Education & Consulting Co., Ltd (“Stars”) July 11, 2007 PRC 100% Kindergarten Beijing Chao Yang District Kindergarten of Stars (“ChaoYang Kindergarten”) November 9, 2007 PRC 100% Kindergarten Nanjing Yuhuatai District New Oriental Kindergarten of Stars (“Nanjing Kindergarten”) February 20, 2009 PRC 100% Kindergarten Qingdao Alice Education & Technology Company Limited (“Qingdao Alice “) August 21, 2014 PRC 100% Kindergarten Name Date of Place of Legal Principal activity Subsidiaries of the Company: Qingdao Laoshan District Happy Alice Kindergarten (“Laoshan Alice”) December 4, 2014 PRC 100% Kindergarten Qingdao Happy Alice Kindergarten (“Qingdao Happy Alice”) November 29, 2005 PRC 100% Kindergarten Qingdao Chengyang District Happy Alice Kindergarten (“Chengyang Alice”) October 30, 2014 PRC 100% Kindergarten 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”) May 30, 2014 BVI 100% Educational Consulting Koolearn Corporation (“Koolearn Cayman”) June 10, 2013 Cayman 100% On-line Education Koolearn Holding Limited (“Koolearn HK”) June 21, 2013 Hong Kong 100% Educational Consulting Variable interest entity of the Company: Beijing 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 Name Date of Place of Legal Principal activity Schools and subsidiaries of New Oriental China: 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 Name Date of Place of Legal Principal activity 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 Name Date of Place of Legal Principal activity Schools and subsidiaries of New Oriental China: 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 (“Jinzhou School”) April 19, 2016 PRC N/A Language education 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 Name Date of Place of Legal Principal activity Schools and subsidiaries of New Oriental China: Beijing New Oriental Yangzhou Foreign Language School June 6, 2002 PRC N/A Primary secondary school education 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 school education Beijing New Oriental Dogwood Cultural Communications Co., Ltd. May 16, 2003 PRC N/A Sales of educational materials and products Beijing New Oriental Dogwood, Bookstore, Audio & Video Co., Ltd. March 2, 2004 PRC N/A Sales of educational materials and products Chengdu New Oriental Dogwood Bookstore Products Co., Ltd. January 18, 2004 PRC N/A Sales of educational materials and products Chongqing New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. February 25, 2004 PRC N/A Sales of educational materials and products Shenyang new Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. September 18, 2003 PRC N/A Sales of educational materials and products 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 materials and products Xi’an New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. June 3, 2003 PRC N/A Sales of educational materials and products Shanghai Dogwood Bookstore & Audio-Visual Products Co., Ltd. September 28, 2003 PRC N/A Sales of educational materials and products Changchun New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. October 8, 2005 PRC N/A Sales of educational materials and products Ha’er Bin New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. March 13, 2006 PRC N/A Sales of educational materials and products Taiyuan New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd. July 12, 2006 PRC N/A Sales of educational materials and products Name Date of Place of Legal Principal activity Schools and subsidiaries of New Oriental China: Hangzhou Dogwood Bookstore Products Co., Ltd July 25, 2007 PRC N/A Sales of educational materials and products 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 Lanzhou New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd October 28, 2008 PRC N/A Sales of educational Shijiazhuang New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd July 28, 2009 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 Xiamen New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd December 8, 2011 PRC N/A Sales of educational Hohhot Dogwood Bookstore & Audio-Visual Products Co., Ltd February 7, 2012 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 Name Date of Place of Legal Principal activity Schools and subsidiaries of New Oriental China: 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 Consulting Beijing New Oriental Vision Overseas Service Co., Ltd. February 24, 2016 PRC N/A Consulting Beijing New Oriental Dogwood Advertisement Co., Ltd. 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 education Leci Internet Technology (Beijing) Company Limited February 11, 2014 PRC N/A Educational consulting and Beijing Dongfangzhuoyong Investment Management Co., Ltd. April 29, 2014 PRC N/A Investment 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 (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, 2015 2016 US$ US$ Total current assets 753,306 1,262,811 Total non-current assets 511,051 381,262 Total assets 1,264,357 1,644,073 Total current liabilities 673,201 860,877 Total non-current liabilities 1,600 1,432 Total liabilities 674,801 862,309 Years ended May 31, 2014 2015 2016 US$ US$ US$ Net revenues 1,121,205 1,221,101 1,443,851 Net income 266,497 265,485 313,828 Net cash provided by operating activities 371,458 357,893 450,848 Net cash used in investing activities (240,427 ) (167,847 ) (286,235 ) Net cash provided by financing activities — — 69,747 |
Significant Accounting Polici38
Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2016 | |
Accounting Policies [Abstract] | |
Changes in Allowance for Doubtful Accounts | Changes in the allowance for doubtful accounts were as follows: As of May 31, 2015 2016 US$ US$ Beginning balance 265 801 Charge during the year 676 235 Written-off (140 ) (628 ) Ending balance 801 408 |
Estimated Useful Lives of Assets | Depreciation and amortization is calculated on a straight line basis over the following estimated economic lives: Buildings 20-50 years 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, 2015 and 2016, the available-for-sale securities recorded in long-term investments include redeemable preferred shares, common shares of a listed company, convertible bond and assets management plan and trust (Refer to Note 12). Those were measured and recorded at fair value on a recurring basis in periods subsequent to their initial recognition and are as follows: May 31, 2015 Description Quoted Prices in Significant Other Significant Total US$ US$ US$ US$ Available for sales investments: Common Shares 16,950 — — 16,950 Redeemable preferred shares — 50,157 — 50,157 Total 16,950 50,157 — 67,107 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 |
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 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
May 31, 2016 | |
China Management Software Institute [Member] | |
Purchase Price Allocation | The purchase price was allocated as at the date of acquisition as follows: US$ Amortization Cash 68 Other current assets 14 Buildings 16,095 23.3-45.3 years Property, plant and equipment 103 1-5 years Land use right 1,008 38.5 years Intangible assets Student base 110 1.75 years Goodwill 1,829 Other current liabilities (45 ) Deferred tax liabilities (1,727 ) Total 17,455 |
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 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
May 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Short-Term Investments | Short-term investments consisted of the following: As of May 31, 2015 2016 US$ US$ Held-to-maturity investments 599,935 819,229 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
May 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventory consisted of the following: As of May 31, 2015 2016 US$ US$ Course materials in schools 7,383 5,787 Publications in bookstores 16,600 21,516 23,983 27,303 |
Prepaid Expenses and Other Cu42
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
May 31, 2016 | |
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, 2015 2016 US$ US$ Prepaid rent 35,973 33,135 Advances to suppliers 19,134 23,143 Interest receivable 6,490 9,341 Rental deposit 3,370 7,122 Receivable from the settlement bank for the proceeds of exercise of options and withholding tax 7,636 5,548 Prepaid advertising fees 3,652 3,250 Staff advances (a) 4,589 2,829 Value added taxes recoverable 1,979 2,534 Deposit of advertising & decoration 1,255 1,961 Receivable of social insurance 1,127 1,374 Prepaid property taxes and other taxes 830 616 Others (b) 11,798 8,824 97,833 99,677 (a) Staff advances were provided to staff for traveling and related use which are expensed as incurred and staff allowance for on-site enrollment activities. (b) Others primarily included maintenance fees, other receivables and other miscellaneous prepayments. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
May 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: As of May 31, 2015 2016 US$ US$ Costs: Intangible assets with indefinite lives: Trademark 264 248 Intangible assets with finite lives: Trademark 1,081 1,293 Courseware 50 47 Student base 2,093 1,978 Favorable lease 1,049 713 License 415 415 4,952 4,694 Accumulated amortization: Trademark (256 ) (383 ) Courseware (50 ) (47 ) Student base (569 ) (1,404 ) Favorable lease (60 ) (123 ) License (98 ) (119 ) (1,033 ) (2,076 ) Net carrying amount: Intangible assets with indefinite lives: Trademark 264 248 Intangible assets with definite lives: Trademark 825 910 Courseware — — Student base 1,524 574 Favorable lease 989 590 License 317 296 3,919 2,618 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
May 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Goodwill | As of May 31, 2015 2016 US$ US$ Costs: Beginning balance 3,692 11,194 Acquisition of Qingdao Alice 7,540 — Exchange differences (38 ) (649 ) Ending balance 11,194 10,545 Accumulated goodwill impairment loss: Beginning balance — — Ending balance — — Goodwill, net 11,194 10,545 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
May 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment consisted of the following: As of May 31, 2015 2016 US$ US$ Buildings 145,159 146,411 Transportation equipment 8,084 8,553 Furniture and education equipment 72,820 76,492 Computer equipment and software 36,502 40,707 Leasehold improvements 152,929 169,345 415,494 441,508 Less: accumulated depreciation (186,612 ) (209,937 ) Construction in-process 2,581 6,127 231,463 237,698 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 12 Months Ended |
May 31, 2016 | |
Text Block [Abstract] | |
Land Use Rights, Net | Land use rights consisted of the following: As of May 31, 2015 2016 US$ US$ Land use rights 5,497 5,178 Less: accumulated amortization (1,089 ) (1,201 ) Exchange differences (146 ) (71 ) Land use rights, net 4,262 3,906 |
LONG TERM INVESTMENTS (Tables)
LONG TERM INVESTMENTS (Tables) | 12 Months Ended |
May 31, 2016 | |
Investments Schedule [Abstract] | |
Schedule of Long Term Investments | Long-term investments consisted of the following: As of May 31, 2015 2016 US$ US$ Cost method investments: Dajie.com Ltd (“Dajie.com”) (a) 2,000 1,460 Equity method investments: Beijing Dongfangheli Investment and Development Ltd. (“Dongfangheli”) (b) 3,967 3,451 Beijing Zhishang Education & Technology Co., Ltd. (“Zhishang Education”) (c) 2,313 1,164 Juesheng Education Group Ltd. (“Juesheng.com”) (d) — 3,249 Suzhou Qingrui Education & Technology Co., Ltd. (“Kou100”) (e) — 3,261 Other Joint Ventures 3,124 2,474 Available-for-sale securities investments: Shanghai Golden Education & Training Co. Ltd. (“Golden Finance”) (f) 3,398 34,242 Alo7.com Limited (“Alo7.com”) (g) 27,935 29,639 AVIC Trust Tianqi No.556 (“Trust 556”) (h) — 16,037 Tarena International, Inc. (“Tarena”) (i) 16,950 15,945 Beijing ShangJiaChongYe Education & Technology Co. Ltd.(“Shangjiachongye”) (j) — 12,310 Juesheng.com (d) 7,440 — Beijing ROBOROBO Technology Co. Ltd. (“ROBOROBO”) (k) 4,356 9,999 Lele Global Limited (“Lele”) (l) — 8,500 Special assets management plan - GuotaiYuanxin & New Oriental (“Assets management plan”) (m) — 7,376 Beijing Yule World Network Technology Co. Ltd. (“STEMedu.cn”) (n) — 5,992 Beijing TangFengHanYu Education & Technology Co. Ltd. (“Tangfeng”) (o) — 5,980 Other investments 7,028 17,784 Held-to-maturity investments:(p) 247,480 — 325,991 178,863 (a) In September 2011, the Group signed a share subscription agreement to invest US$2,000 for 5% equity ownership interest in Dajie.com. The fair value of Dajie.com’s equity ownership interest was not readily determinable and the Group did not have the ability to exercise significant influence over the operating and financial policies of Dajie.com. Accordingly, the investment in Dajie.com was accounted for as a cost-method investment. In March 2016, the Company disposed part of equity ownership interest for US$540 and reinvested into Dajie.com’s VIE. The new investment was classified as available-for-sale security as the Company determined that the shares were debt security due to the redemption option available to the investee and accordingly measured the investment at fair value. (b) 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, because the Group has the ability to exercise significant influence but does not have control over the investee. (c) In July 2014, the Group invested US$2,662 to acquire 55% equity interest in Zhishang Education, an online professional educational training platform. The Group has concluded that it does not have control over Zhishang Education because other investors have significant participating rights, but determined that it has the ability to exercise significant influence. Therefore the Group used the equity method to account for the investment. (d) 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 11.88% equity interests. These investments were classified as available-for-sale securities 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 in-substance 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 in common share using the equity method as the Group determined that it can exercise significant influence over Juesheng.com. (e) 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 security 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 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 in-substance 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 in common share using the equity method as the Group determined that it can exercise significant influence over Kouyu100. (f) 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. The investment was classified as available-for-sale security as the Group 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 gains of nil and US$19,407 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively. (g) 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 for convertible and redeemable preferred shares. These investments were classified as available-for-sale securities as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. As of May 31, 2016, the Company had 17.16% equity interests in Alo7.com on an as-converted basis. Unrealized holding gains of US$631, US$13,428 and US$1,704 were reported in other comprehensive income for the years ended May 31, 2014, 2015 and 2016, respectively. (h) 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 long-term investment as the Group determined that the shares were debt securities and unrealized holding gains of US$383 was reported in other comprehensive income for the year ended May 31, 2016. (i) In March 2014, the Group invested US$13,500 in Tarena, which is a service provider of IT professional education in China, for 2.96% ownership. This investment was classified as available-for-sale securities as Tarena is a NASDAQ listed company and the Group measured the investment subsequently at fair value. Unrealized holding loss of US$45, gain of US$3,495 and loss of US$1,005 were reported in other comprehensive income for the years ended May 31, 2014, 2015 and 2016, respectively. (j) 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. The investment was classified as available-for-sale security and measured at fair value. As there was no operation change or significant transaction occurred since the transaction date, the initial purchase price was considered the fair value of this investment as of May 31, 2016. (k) 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. The investment was classified as available-for-sale security as the Group 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 gains of nil and US$5,643 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively. (l) In September 2015, the Group invested US$8,500 to acquire 48,796,296 shares of Series B-1 convertible redeemable preferred shares for an 8.5% equity interests of Lele. Lele provides online learning and tutoring services for students from kindergarten through 12th grade. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. No unrealized holding gain or loss was reported in other comprehensive income for the year ended May 31, 2016 as the Group determined that there was no operation changes or significant transactions at the investee between the investment date and May 31, 2016. (m) In August 2015, the Group invested US$7,315 in an Assets management plan with a maturity of five years. The investment is managed together with another similar investment held by Mr. Yu and some other employees in the Group. The investment was classified as available-for-sale security as the Group determined that the investment was a debt security and measured the investment subsequently at fair value. Unrealized holding gains of US$61 was reported in other comprehensive income for the year ended May 31, 2016. (n) In July 2015, the Group invested US$2,844 to acquire 36% equity interest in STEMedu.cn, a company engaging in the business of providing service of education training. The investment was classified as available-for-sale security as the Group 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$3,148 was reported in other comprehensive income for the year ended May 31, 2016. (o) In November 2015, the Group entered into an investment agreement with Tangfeng which engages in the business of Chinese training to acquire 6% equity interest with a total cash consideration of US$1,831. The investment was classified as available-for-sale security as the Group 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$4,149 was reported in other comprehensive income for the year ended May 31, 2016. (p) The Group’s long-term held-to-maturity investments consist of trusts guaranteed by banks with the maturity more than one year, which are stated at their amortized cost. The trusts were invested in April, June and September 2014 with the amounts of US$96,805, US$80,671 and US$64,537, respectively, and interest income of US$1,404 and US$20,882 and US$20,771 was recognized in the consolidated statements of operations for the years ended May 31, 2014, 2015 and 2016, respectively. As of May 31, 2016, US$118,816 of the held-to-maturity investments were reclassified to long-term investments due within one year. |
Accrued Expenses and Other Cu48
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
May 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of May 31, 2015 2016 US$ US$ Accrued payroll 103,270 131,151 Payable for purchase of property and equipment 7,433 11,953 Amounts reimbursable to employees (a) 5,418 8,294 Individual taxes withholding 8,148 8,186 Refundable fees received from students (b) 10,023 5,755 Business taxes payable 9,701 5,259 Value added taxes payable 1,147 6,506 Accrued advertising fees 8,210 6,443 Rent payable 3,883 6,285 Welfare payable 6,213 6,004 Royalty fees payable (c) 2,565 3,637 Refundable deposit (d) 1,956 3,161 Accrued professional service fees 1,683 2,352 Other taxes payable 1,887 1,240 Investment payable (e) 1,452 — Others (f) 5,814 10,818 Total 178,803 217,044 (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 learning programs and those to counterparties for copyright and resource sharing. (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) The balance as of May 31, 2015 represents a payable for an available-for-sale investment in ROBOROBO, which was fully paid in July 2015. (f) 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, 2016 | |
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: NES Grant-date fair value and US$ Grant date: January 24, 2008 2,720,000 12.75 March 11, 2008 152,000 14.00 July 1, 2008 278,500 13.75 Oct 28, 2008 3,200 12.65 May 15, 2009 205,548 12.75 June 15, 2009 316,200 15.13 May 26, 2010 556,848 21.75 June 10, 2011 811,020 25.11 July 23, 2012 1,956,935 12.19 May 27, 2013 208,590 20.33 July 19, 2013 19,830 22.80 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 Total 8,608,671 |
Summary of Share Options Activity under 2006 Share Incentive Plan | A summary of share options activity under 2006 Share Incentive Plan for years ended May 31, 2014, 2015 and 2016 was as follows: Weighted Weighted remaining Aggregated US$ years US$ Options outstanding at May 31, 2013 3,637,249 9.27 6.39 47,503 Granted — — Exercised (2,113,094 ) 8.37 Forfeited (252,000 ) 12.19 Options outstanding at May 31, 2014 1,272,155 10.18 6.20 19,898 Granted — — Exercised (953,514 ) 11.81 Forfeited — — Options outstanding at May 31, 2015 318,641 5.30 1.92 5,903 Granted — — Exercised (240,304 ) 5.03 Forfeited — — Options outstanding at May 31, 2016 78,337 6.13 0.58 2,829 Options vested and expect to vest at May 31, 2016 78,337 6.13 0.58 2,829 Options exercisable at May 31, 2016 78,337 6.13 0.58 2,829 |
Summary of NES Activities under 2006 Share Incentive Plan | A summary of NES activities under 2006 Share Incentive Plan for the years ended May 31, 2014, 2015 and 2016 was as follows: Number Weighted- US$ NES outstanding at May 31, 2013 1,510,970 13.45 Granted 19,830 22.80 Vested (810,052 ) 14.30 Forfeited (100,818 ) 14.97 NES outstanding at May 31, 2014 619,930 12.39 Granted 833,670 19.26 Vested (575,432 ) 15.44 Forfeited (271,768 ) 13.23 NES outstanding at May 31, 2015 606,400 18.55 Granted 546,330 22.66 Vested (712,330 ) 21.39 Forfeited (40,400 ) 20.61 NES outstanding at May 31, 2016 400,000 18.91 NES vested and expect to vest at May 31, 2016 400,000 18.91 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | Significant components of provision for income taxes for the years ended May 31, 2014, 2015 and 2016 were as follows: Years ended May 31, 2014 2015 2016 US$ US$ US$ Current: PRC 28,235 31,552 39,467 Deferred: PRC (2,193 ) (5,331 ) (1,936 ) Total provision for income taxes 26,042 26,221 37,531 |
Components of Group's Deferred Tax Assets and Liabilities | Significant components of the Group’s deferred tax assets and liabilities were as follows (1): As of May 31, 2015 2016 US$ US$ Current deferred tax assets Allowance doubtful accounts 205 — Accrued expenses 15,990 — Deferred revenue for incentive plan 2,382 — Total current deferred tax assets 18,577 — Less: valuation allowance (589 ) — Current deferred tax assets, net 17,988 — Non-current deferred tax assets Allowance doubtful accounts — 252 Accrued expenses — 18,427 Deferred revenue for incentive plan — 2,376 Net operating loss carry-forwards 7,403 6,910 Total non-current deferred tax assets 7,403 27,965 Less: valuation allowance (2,363 ) (3,624 ) Non-current deferred tax assets, net 5,040 24,341 Non-current deferred tax liabilities Acquired of non-current assets (2,461 ) (1,982 ) Total non-current deferred tax liabilities (2,461 ) (1,982 ) (1) The Group chose to early adopt ASU 2015-17 and classified all deferred tax assets and liability as noncurrent as of May 31,2016. The Group did not retrospectively apply the changes to prior years. |
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, 2014, 2015 and 2016: Years ended May 31, 2014 2015 2016 % % % Statutory tax rate 25.00 25.00 25.00 Effect of expenses not deductible for tax purposes 4.33 4.91 4.57 Effect of tax holiday (20.34 ) (20.82 ) (18.05 ) Changes in valuation allowance (0.09 ) (0.59 ) 0.25 Effect of dividend withholding tax 1.81 3.39 2.27 Total provision for income taxes 10.71 11.89 14.04 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
May 31, 2016 | |
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, 2014 2015 2016 US$ US$ US$ Numerator used in basic and diluted net income per share: Net income attributable to New Oriental Education &Technology Group Inc. 215,704 193,013 224,884 Net income available for future distribution 215,704 193,013 224,884 Shares (denominator): Weighted average common shares outstanding used in computing basic net income per share 156,033,992 156,438,606 156,782,439 Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method 1,869,472 863,568 609,247 Weighted average common shares outstanding used in computing diluted net income per share 157,903,464 157,302,174 157,391,686 Net income per share - Basic 1.38 1.23 1.43 - Diluted 1.37 1.23 1.43 |
Schedule I - Condensed Financ52
Schedule I - Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
May 31, 2016 | |
Balances and Transaction with Related Parties | The Group had the following balances and transaction with related parties: Balances: Amounts due from Notes Relationship 2015 2016 US$ US$ Metropolis Holding China Limited (1) Company controlled by 1,497 1,741 Amounts due from Amounts due to Notes Relationship 2015 2016 2015 2016 US$ US$ US$ US$ Metropolis Holding China Limited (1) Company controlled by 1,096 637 — — MaxEn (2) Joint Venture 2,490 812 1,992 13 Zhishang Education Joint Venture — 3 — Beijing Haiwei Career Services Co., Ltd (“Haiwei Career”) (3) Joint Venture — 1,553 — — Dianshijingwei (4) Long-term investee — 1,520 — — Others (5) — 17 — 29 Total 3,586 4,539 1,995 42 Transactions: Rental expense 2014 2015 2016 US$ US$ US$ Metropolis Holding China Limited (1) Company controlled by 4,173 5,298 7,139 Gain on disposal of subsidiaries 2014 2015 2016 US$ US$ US$ MaxEn (Note 4) Joint Venture 3,621 — — Loan to related parties 2014 2015 2016 US$ US$ US$ Haiwei Career (3) Joint Venture — — 1,520 Beijing Weixue Mingri Network Technology Co., Ltd.(“Weixuemingri”) (6) Joint Venture — — 998 Total — — 2,518 Revenue 2014 2015 2016 US$ US$ US$ MaxEn Joint Venture — — 177 Beijing Tongban Education & Technology Co. Ltd. (“Tongban”) Long-term investee — — 3 STEMedu.cn Long-term investee 11 Total — — 191 Cost 2014 2015 2016 US$ US$ US$ STEMedu.cn Long-term investee — — 30 (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 chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2016, the current and non-current amounts due from Metropolis Holding China Limited were US$637 and US$1,741, 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 September 2012, MaxEn became a joint venture of the Group. As a result, MaxEn became a related party of the Group thereafter. As of May 31, 2016, the amount due from MaxEn was US$812, which represented MaxEn’s pre-operating expenses of US$377 prepaid by the Group, US$91 payable to Beijing Decision for service fee and unpaid consideration of US$344 for disposal of North Star; the amount due to MaxEn was US$13, which represented miscellaneous payments paid for the Group. The amount due to MaxEn is non-interest bearing and unsecured and has no fixed repayment terms. (3) 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, 2016, the amount due from Haiwei Career, was US$1,553 in which US$1,520 represented loans from the Group to Haiwei Career with non-interest bearing for its daily operation supporting. All the loans are payable within one year. (4) 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. (5) As of May 31, 2016, the balance in “others” included the current receivables from long-term investees of Tongban, Goldern Finance and STEMedu.cn. (6) As of May 31, 2016, the Group lent non-interest bearing loan with a total amount of US$998 to Weixuemingri to support its daily operation. The Group fully wrote off the outstanding loan in the same year. |
Parent Company [Member] | |
Balances and Transaction with Related Parties | The following represented related party balances as of May 31, 2015 and 2016: May 31, 2015 2016 US$ US$ Amount due from related parties: Winner Park 12 12 Smart Shine 8,512 — Elite Concept Holdings Limited 8,631 9,897 Koolearn Holdings Limited — 180 New Oriental China 8,541 6,669 25,696 16,758 Amount due to related parties: Elite Concept Holdings Limited 357 357 Abundant State Limited 75,060 81,798 Smart Shine — 1,487 75,417 83,642 |
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, 2015 2016 US$ US$ ASSETS Current assets: Cash and cash equivalents 22,748 11,984 Term deposit — 10,000 Prepaid expense and other current assets 10,780 5,900 Amounts due from related parties 25,696 16,758 Total current assets 59,224 44,642 Long-term investments 51,902 96,498 Investments in subsidiaries and VIEs 1,194,328 1,353,090 Total assets 1,305,454 1,494,230 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other current liabilities 9,689 6,016 Amounts due to related parties 75,417 83,642 Total current liabilities 85,106 89,658 Equity: Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2015 and 2016; 158,379,387 shares issued as of May 31, 2015 and 2016; 156,486,763 and 157,439,397 shares outstanding as of May 31, 2015 and 2016, respectively) 1,584 1,584 Treasury stock (19 ) (9 ) Additional paid-in capital 141,653 223,422 Retained earnings 977,625 1,116,627 Accumulated other comprehensive income 99,505 62,948 Total shareholders’ equity 1,220,348 1,404,572 Total liabilities and equity 1,305,454 1,494,230 |
Condensed Financial Information of Parent Company - Statements of Operations | Condensed Financial Information of Parent Company Statements of Operations (In thousands) Years ended May 31, 2014 2015 2016 US$ US$ US$ Operating costs and expenses: General and administrative 20,435 12,963 16,732 Total operating costs and expenses 20,435 12,963 16,732 Operating loss (20,435 ) (12,963 ) (16,732 ) Interest income 1 2 1 Equity in earnings of subsidiaries and VIEs 236,138 205,974 241,615 Net income 215,704 193,013 224,884 |
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, 2014 2015 2016 US$ US$ US$ Net income 215,704 193,013 224,884 Other comprehensive income, net of tax Foreign currency translation adjustment (17,894 ) 12,006 (72,193 ) Unrealized gain on available-for-sale securities, net of tax effect of nil, nil and nil for years ended May 31, 2014, 2015 and 2016 586 21,940 35,636 Other comprehensive (loss) / income (17,308 ) 33,946 (36,557 ) Comprehensive income 198,396 226,959 188,327 |
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 Treasury Retained Accumulated Total Unrestricted shares Amount US$ US$ US$ US$ US$ US$ Balance at June 1, 2013 156,695,987 1,573 164,336 (17 ) 608,493 82,867 857,252 Issuance of ADS shares for the exercises of employee share options — 11 7,837 — — — 7,848 Reissuance of Treasury stock for the exercises of employee share options 1,014,727 — 13,514 10 — — 13,524 Reissuance of Treasury stock for Non-vested equity shares vested 810,052 — (8 ) 8 — — — Share based compensation expense — — 20,079 — — — 20,079 Dividend declared — — (14,891 ) — (39,585 ) — (54,476 ) Share repurchase (762,100 ) — (16,858 ) (7 ) — — (16,865 ) Net income — — — — 215,704 — 215,704 Foreign currency translation adjustment — — — — — (17,894 ) (17,894 ) Unrealized gain on available-for-sale securities, net of tax effect of nil — — — — — 586 586 Balance at May 31, 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 equity shares 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 securities, net of tax effect of nil — — — — — 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 equity shares 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 restructuring of Xuncheng — — 23,214 — (23,214 ) — — Foreign currency translation adjustment — — — — — (72,193 ) (72,193 ) Unrealized gain on available-for-sale securities, net of tax effect of nil — — — — — 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 |
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, 2014 2015 2016 US$ US$ US$ Cash flows from operating activities: Net income 215,704 193,013 224,884 Adjustments to reconcile net income to net cash provided by (used in) operating activities Equity in earnings of subsidiaries (236,138 ) (205,974 ) (241,615 ) Dividend received from subsidiaries 83,728 — 49,984 Share-based compensation expense 20,079 15,689 16,810 Changes in operating assets and liabilities: Prepaid expenses and other current assets (2,958 ) (2,613 ) 5,135 Accrued expenses and other current liabilities 4,988 (2,728 ) (3,673 ) Amounts due from/to related parties (849 ) (762 ) (1,446 ) Net cash provided by (used in) operating activities 84,554 (3,375 ) 50,079 Cash flows from investing activities Investments in term deposits — — (10,000 ) Payment for available-for-sale investments (16,076 ) (10,300 ) (9,500 ) Proceed from investment withdrawn in Dajie.com — — 540 Loan to related parties — (6,423 ) 1,487 Repayment from related parties 15,500 — 8,512 Net cash used in investing activities (576 ) (16,723 ) (8,961 ) Cash flows from financing activities: Proceeds from issuance of common shares upon exercise of share options 21,849 11,332 2,176 Loan from related party — 75,060 8,610 Loan repayment to related party (42,643 ) — — Cash paid for shares repurchase (21,487 ) (59,420 ) — Cash paid for dividend (54,476 ) — (62,668 ) Net cash (used in) provided by financing activities (96,757 ) 26,972 (51,882 ) Net (decrease) / increase in cash and cash equivalents (12,779 ) 6,874 (10,764 ) Cash and cash equivalents, beginning of year 28,653 15,874 22,748 Cash and cash equivalents, end of year 15,874 22,748 11,984 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
May 31, 2016 | |
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 operating leases were as follows on May 31, 2016: US$ Years ended May 31: 2017 149,265 2018 126,088 2019 98,760 2020 74,714 2021 46,702 Thereafter 51,483 547,012 |
Future Minimum Capital Commitments under Non-Cancelable Construction | As of May 31, 2016, future minimum capital commitments under non-cancelable construction were as follows: US$ Capital commitment for the purchase of property and equipment 1,389 Capital commitment for leasehold improvements 8,038 9,427 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
May 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Summary of Changes in Noncontrolling Interest | Koolearn Xuncheng US$ New Jinzhou Total Balance as of May 31, 2013 and 2014 — — — — — Capital injection from noncontrolling interest shareholders 3,752 — 39 — 3,791 (Loss) attributed to noncontrolling interest shareholders (294 ) — (1 ) — (295 ) Balance as of May 31, 2015 3,458 — 38 — 3,496 Capital injection from noncontrolling interest shareholders — 28,737 182 28,919 Capital repurchase from noncontrolling interest shareholders (3,497 ) — — — (3,497 ) Unrealized gain on available-for-sale securities attributed to noncontrolling interest shareholders — 999 — — 999 Foreign currency translation adjustment attributed to noncontrolling interest shareholders — (269 ) (2 ) — (271 ) Gain (loss) attributed to noncontrolling interest shareholders 39 423 3 (21 ) 444 Balance as of May 31, 2016 — 29,890 39 161 30,090 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
May 31, 2016 | |
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, 2014 Language Primary and Others Consolidated US$ US$ US$ US$ Net revenues 969,947 24,063 144,877 1,138,887 Operating costs and expenses: Cost of revenues (388,998 ) (8,488 ) (54,183 ) (451,669 ) Selling and marketing (112,092 ) (956 ) (34,009 ) (147,057 ) General and administrative (204,679 ) (8,748 ) (36,745 ) (250,172 ) Unallocated corporate expenses — — — (96,043 ) Total operating costs and expenses (705,769 ) (18,192 ) (124,937 ) (944,941 ) Gain on disposal of subsidiaries — — 3,621 3,621 Operating income 264,178 5,871 23,561 197,567 Segment assets 709,979 65,357 245,505 1,020,841 Unallocated corporate assets — — — 582,704 Total assets 709,979 65,357 245,505 1,603,545 For the year ended May 31, 2015 Language Primary and 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 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 |
Organization and Principal Ac56
Organization and Principal Activities - Details of Company's Subsidiaries and VIE and Its Subsidiaries (Detail) | 12 Months Ended | |
May 31, 2016 | ||
Variable interest entities (VIEs) [Member] | Beijing 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 | Jan. 31, 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 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] | Beijing Chongshengdongfang Network Technology Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 24, 2014 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [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 | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Beijing Chao Yang District Kindergarten of Stars [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Nov. 9, 2007 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Nanjing Yuhuatai District New Oriental Kindergarten of Stars [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Feb. 20, 2009 | |
Place of incorporation (or establishment)/ operation | PRC | |
Legal ownership | 100.00% | |
Subsidiaries [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 | |
Legal ownership | 100.00% | |
Subsidiaries [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 | |
Legal ownership | 100.00% | |
Subsidiaries [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 | |
Legal ownership | 100.00% | |
Subsidiaries [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 | |
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 | May 30, 2014 | |
Place of incorporation (or establishment)/ operation | BVI | |
Legal ownership | 100.00% | |
Subsidiaries [Member] | Koolearn Corporation [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jun. 10, 2013 | |
Place of incorporation (or establishment)/ operation | Cayman | |
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% | |
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 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 Training 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] | Changchun Tongwen Gaokao Training Education 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] | Shenyang New Oriental Dogwood Bookstore And Audio Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Sep. 18, 2003 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Guangzhou New Oriental 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] | Xian 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] | Haer 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] | Shijiazhuang New Oriental Dogwood Bookstore And Audio-Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Jul. 28, 2009 | |
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] | Xiamen New Oriental Dogwood Bookstore And Audio-Visual Products Company Limited [Member] | ||
Variable Interest Entities [Line Items] | ||
Date of incorporation or establishment | Dec. 8, 2011 | |
Place of incorporation (or establishment)/ operation | PRC | |
Schools and Subsidiaries of New Oriental China [Member] | Hohhot Dogwood Bookstore And Audiovisual 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] | 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 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] | 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] | 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 | |
[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 Ac57
Organization and Principal Activities - Additional Information (Detail) - Agreement | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
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 | 15.10% | ||
Credit Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 97.70% | 97.90% | 98.40% |
Credit Concentration Risk [Member] | Assets, Total [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 69.80% | 64.80% | |
Credit Concentration Risk [Member] | Liabilities, Total [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 93.70% | 92.70% |
Organization and Principal Ac58
Organization and Principal Activities - Balances and Amounts of Company's WFOEs and VIEs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Variable Interest Entities [Line Items] | |||
Total current assets | $ 1,869,336 | $ 1,348,880 | |
Total assets | 2,354,834 | 1,951,537 | $ 1,603,545 |
Total current liabilities | 918,190 | 725,232 | |
Total liabilities | 920,172 | 727,693 | |
Net revenues | 1,478,348 | 1,246,766 | 1,138,887 |
Net income | 224,884 | 193,013 | 215,704 |
Net cash provided by operating activities | 517,894 | 374,145 | 361,345 |
Net cash used in investing activities | (309,737) | (173,417) | (344,377) |
Net cash provided by financing activities | 5,503 | (44,297) | (54,114) |
Variable interest entities (VIEs) [Member] | |||
Variable Interest Entities [Line Items] | |||
Total current assets | 1,262,811 | 753,306 | |
Total non-current assets | 381,262 | 511,051 | |
Total assets | 1,644,073 | 1,264,357 | |
Total current liabilities | 860,877 | 673,201 | |
Total non-current liabilities | 1,432 | 1,600 | |
Total liabilities | 862,309 | 674,801 | |
Net revenues | 1,443,851 | 1,221,101 | 1,121,205 |
Net income | 313,828 | 265,485 | 266,497 |
Net cash provided by operating activities | 450,848 | 357,893 | 371,458 |
Net cash used in investing activities | (286,235) | $ (167,847) | $ (240,427) |
Net cash provided by financing activities | $ 69,747 |
Significant Accounting Polici59
Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Receivables [Abstract] | ||
Beginning balance | $ 801 | $ 265 |
Charge during the year | 235 | 676 |
Written-off | (628) | (140) |
Ending balance | $ 408 | $ 801 |
Significant Accounting Polici60
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Significant Of Accounting Policies [Line Items] | |||
Impairment loss on goodwill | $ 0 | $ 0 | $ 0 |
Impairment losses | $ 0 | 2,000 | 0 |
Percentage of ownership interest in voting stock considered to exist significant influence over investee company | 50.00% | ||
Business tax and VAT | $ 52,993,000 | 45,664,000 | 39,909,000 |
Total advertising expenses | 39,753,000 | 38,295,000 | 41,952,000 |
Government subsidies received | 494,000 | 1,230,000 | 1,437,000 |
Aggregate amounts denominated in RMB | 747,762,000 | 512,887,000 | |
Amount transfer from level 1 to level 2 | 0 | ||
Amount transfer from level 1 to level 2 | 0 | ||
Impairment loss related to investments, goodwill and intangible assets | $ 0 | $ 2,000 | $ 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 securities | |||
Significant Of Accounting Policies [Line Items] | |||
Transfer from level 2 fair value measurements | $ 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 | 97.70% | 97.90% | 98.40% |
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 Polici61
Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
May 31, 2016 | |
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 Polici62
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, 2016 | May 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | $ 163,804 | $ 67,107 |
Common Shares [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 15,945 | 16,950 |
Redeemable Preferred Shares [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 112,136 | 50,157 |
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 | 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 | 15,945 | 16,950 |
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 | 15,945 | 16,950 |
Significant Other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sales investments | 77,986 | 50,157 |
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 | 42,263 | $ 50,157 |
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 | 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 | 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 | $ 69,873 |
Reconciliation of The Fair Valu
Reconciliation of The Fair Value Measurements of Assets And Liabilities Using Significant Unobservable Inputs (level 3) (Detail) - Available-for-sale securities $ in Thousands | 12 Months Ended |
May 31, 2016USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance at June 1, 2015 | $ 0 |
Transfer from level 2 fair value measurements | 63,881 |
Initial recognition | 2,844 |
Unrealized gain | 3,148 |
Balance at May 31, 2016 | $ 69,873 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 01, 2014 | Sep. 01, 2012 | May 31, 2016 |
China Management Software Institute [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, date | Sep. 1, 2012 | ||
Business acquisition, equity interest | 100.00% | ||
Business acquisition, total consideration | $ 18,000 | ||
Business acquisition, present value of consideration | $ 17,455 | ||
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 | ||
Business acquisition, present value of consideration | $ 12,929 |
Business Acquisition - Purchase
Business Acquisition - Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Dec. 01, 2014 | Sep. 01, 2012 | May 31, 2016 | May 31, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 10,545 | $ 11,194 | ||
Buildings [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 20 years | |||
Buildings [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 50 years | |||
China Management Software Institute [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 68 | |||
Other current assets | 14 | |||
Buildings | 16,095 | |||
Property, plant and equipment | 103 | |||
Land use right | 1,008 | |||
Goodwill | 1,829 | |||
Other current liabilities | (45) | |||
Deferred tax liabilities | (1,727) | |||
Total | $ 17,455 | |||
China Management Software Institute [Member] | Land use rights [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 38 years 6 months | |||
China Management Software Institute [Member] | Student base [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 110 | |||
Amortization period | 1 year 9 months | |||
China Management Software Institute [Member] | Buildings [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 23 years 3 months 18 days | |||
China Management Software Institute [Member] | Buildings [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 45 years 3 months 18 days | |||
China Management Software Institute [Member] | Property, Plant and Equipment [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 1 year | |||
China Management Software Institute [Member] | Property, Plant and Equipment [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 5 years | |||
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 |
Disposal of Subsidiaries - Addi
Disposal of Subsidiaries - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2016 | May 31, 2014 | Mar. 31, 2014 | May 31, 2016 | May 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposal of subsidiaries | $ 3,760 | $ 3,621 | |||
Equity ownership interest | 50.00% | ||||
Boost Caring [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage of equity interest sold | 100.00% | ||||
Proceeds from disposal of subsidiaries | $ 1,496 | ||||
MaxEn [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage of equity interest sold | 65.00% | ||||
Cash consideration | $ 1,560 | ||||
Gain on disposal of subsidiaries | 3,254 | ||||
North Star [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage of equity interest sold | 100.00% | ||||
Cash consideration | $ 364 | 364 | |||
Gain on disposal of subsidiaries | $ 367 | ||||
Dianshijingwei [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 | ||||
Proceeds from disposal of subsidiaries | $ 1,520 | ||||
Equity ownership interest | 49.00% |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
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 | 7.00% |
Short-Term Investments - Summar
Short-Term Investments - Summary of Short-Term Investments (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Short-term Investments [Abstract] | ||
Held-to-maturity investments | $ 819,229 | $ 599,935 |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Inventory Disclosure [Abstract] | ||
Course materials in schools | $ 5,787 | $ 7,383 |
Publications in bookstores | 21,516 | 16,600 |
Inventory | $ 27,303 | $ 23,983 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Inventory Disclosure [Abstract] | ||
Inventory marked down value | $ 638 | $ 513 |
Prepaid Expenses and Other Cu71
Prepaid Expenses and Other Current Assets - Components of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 | |
Prepaid Expenses And Other Current Assets [Abstract] | |||
Prepaid rent | $ 33,135 | $ 35,973 | |
Advances to suppliers | 23,143 | 19,134 | |
Interest receivable | 9,341 | 6,490 | |
Rental deposit | 7,122 | 3,370 | |
Receivable from the settlement bank for the proceeds of exercise of options and withholding tax | 5,548 | 7,636 | |
Prepaid advertising fees | 3,250 | 3,652 | |
Staff advances | [1] | 2,829 | 4,589 |
Value added taxes recoverable | 2,534 | 1,979 | |
Deposit of advertising & decoration | 1,961 | 1,255 | |
Receivable of social insurance | 1,374 | 1,127 | |
Prepaid property taxes and other taxes | 616 | 830 | |
Others | [2] | 8,824 | 11,798 |
Prepaid expenses and other current assets | $ 99,677 | $ 97,833 | |
[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. |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Intangible assets with indefinite lives: | ||
Intangible assets with indefinite lives, Gross | $ 248 | $ 264 |
Intangible assets with finite lives: | ||
Intangible assets, gross | 4,694 | 4,952 |
Accumulated amortization: | ||
Accumulated amortization | (2,076) | (1,033) |
Intangible assets with indefinite lives, Net | 248 | 264 |
Intangible assets | 2,618 | 3,919 |
Trademark [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 1,293 | 1,081 |
Accumulated amortization: | ||
Accumulated amortization | (383) | (256) |
Intangible assets with definite lives, Net | 910 | 825 |
Courseware [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 47 | 50 |
Accumulated amortization: | ||
Accumulated amortization | (47) | (50) |
Student base [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 1,978 | 2,093 |
Accumulated amortization: | ||
Accumulated amortization | (1,404) | (569) |
Intangible assets with definite lives, Net | 574 | 1,524 |
Favorable lease [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 713 | 1,049 |
Accumulated amortization: | ||
Accumulated amortization | (123) | (60) |
Intangible assets with definite lives, Net | 590 | 989 |
License [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 415 | 415 |
Accumulated amortization: | ||
Accumulated amortization | (119) | (98) |
Intangible assets with definite lives, Net | $ 296 | $ 317 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expenses | $ 1,122 | $ 607 | $ 113 |
Future amortization expense next twelve months | 806 | ||
Future amortization expense year two | 231 | ||
Future amortization expense year three | 209 | ||
Future amortization expense year four | 201 | ||
Future amortization expense year five | 201 | ||
Future amortization expense thereafter | $ 722 |
Goodwill - Components of Goodwi
Goodwill - Components of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Costs: | ||
Beginning balance | $ 11,194 | $ 3,692 |
Exchange differences | (649) | (38) |
Ending balance | 10,545 | 11,194 |
Accumulated goodwill impairment loss: | ||
Beginning balance | 0 | 0 |
Ending balance | 0 | 0 |
Goodwill, net | $ 10,545 | 11,194 |
Qingdao Alice Kindergarten [Member] | ||
Costs: | ||
Acquisition | $ 7,540 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 441,508 | $ 415,494 |
Less: accumulated depreciation | (209,937) | (186,612) |
Construction in-process | 6,127 | 2,581 |
Property and equipment, Net | 237,698 | 231,463 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 146,411 | 145,159 |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,553 | 8,084 |
Furniture and education equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 76,492 | 72,820 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 40,707 | 36,502 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 169,345 | $ 152,929 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 47,281 | $ 46,663 | $ 43,578 |
Land Use Rights - Land Use Righ
Land Use Rights - Land Use Rights, Net (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Real Estate [Abstract] | ||
Land use rights | $ 5,178 | $ 5,497 |
Less: accumulated amortization | (1,201) | (1,089) |
Exchange differences | (71) | (146) |
Land use rights, net | $ 3,906 | $ 4,262 |
Land Use Rights - Additional In
Land Use Rights - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Land Use Rights [Line Items] | |||
Amortization expenses of land use rights | $ 112 | $ 116 | $ 117 |
Future amortization expense next twelve months | 806 | ||
Future amortization expense year two | 231 | ||
Future amortization expense year three | 209 | ||
Future amortization expense year four | 201 | ||
Future amortization expense year five | 201 | ||
Future amortization expense thereafter | 722 | ||
Land use rights [Member] | |||
Land Use Rights [Line Items] | |||
Future amortization expense next twelve months | 109 | ||
Future amortization expense year two | 109 | ||
Future amortization expense year three | 109 | ||
Future amortization expense year four | 109 | ||
Future amortization expense year five | 109 | ||
Future amortization expense thereafter | $ 3,361 |
Long Term Investments - Schedul
Long Term Investments - Schedule of Long Term Investments (Detail) - USD ($) $ in Thousands | May 31, 2016 | Nov. 30, 2015 | Oct. 31, 2015 | Jul. 31, 2015 | May 31, 2015 | Apr. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Mar. 05, 2012 | ||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | $ 178,863 | $ 325,991 | |||||||||||
Held-to-maturity investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | 247,480 | [1] | $ 64,537 | $ 80,671 | $ 96,805 | ||||||||
Dajie.com Ltd [Member] | Cost-method Investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [2] | 1,460 | 2,000 | ||||||||||
Dongfangheli [Member] | Equity Method Investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [3] | 3,451 | 3,967 | ||||||||||
Zhishang Education [Member] | Equity Method Investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [4] | 1,164 | 2,313 | ||||||||||
Juesheng.com [Member] | Equity Method Investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [5] | 3,249 | |||||||||||
Juesheng.com [Member] | Available for sale securities investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [5] | 7,440 | |||||||||||
Kouyu 100 [Member] | Equity Method Investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [6] | 3,261 | |||||||||||
Other Joint Ventures [Member] | Equity Method Investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | 2,474 | 3,124 | |||||||||||
Golden Finance [Member] | Available for sale securities investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [7] | 34,242 | 3,398 | ||||||||||
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 | [8] | 29,639 | 27,935 | ||||||||||
Trust 556 [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | $ 15,654 | ||||||||||||
Trust 556 [Member] | Available for sale securities investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [9] | 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 | [10] | 15,945 | 16,950 | ||||||||||
Shangjiachongye | Available for sale securities investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [11] | 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 | [12] | 9,999 | 4,356 | ||||||||||
Lele [Member] | Available for sale securities investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [13] | 8,500 | |||||||||||
Assets management plan | Available for sale securities investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [14] | 7,376 | |||||||||||
STEMedu.cn [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | $ 2,844 | ||||||||||||
STEMedu.cn [Member] | Available for sale securities investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [15] | 5,992 | |||||||||||
TangFeng | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | $ 1,831 | ||||||||||||
TangFeng | Available for sale securities investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | [16] | 5,980 | |||||||||||
Other investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term investments | $ 17,784 | $ 7,028 | |||||||||||
[1] | The Group's long-term held-to-maturity investments consist of trusts guaranteed by banks with the maturity more than one year, which are stated at their amortized cost. The trusts were invested in April, June and September 2014 with the amounts of US$96,805, US$80,671 and US$64,537, respectively, and interest income of US$1,404 and US$20,882 and US$20,771 was recognized in the consolidated statements of operations for the years ended May 31, 2014, 2015 and 2016, respectively. As of May 31, 2016, US$118,816 of the held-to-maturity investments were reclassified to long-term investments due within one year. | ||||||||||||
[2] | In September 2011, the Group signed a share subscription agreement to invest US$2,000 for 5% equity ownership interest in Dajie.com. The fair value of Dajie.com's equity ownership interest was not readily determinable and the Group did not have the ability to exercise significant influence over the operating and financial policies of Dajie.com. Accordingly, the investment in Dajie.com was accounted for as a cost-method investment. In March 2016, the Company disposed part of equity ownership interest for US$540 and reinvested into Dajie.com's VIE. The new investment was classified as available-for-sale security as the Company determined that the shares were debt security due to the redemption option available to the investee and accordingly measured the investment at fair value. | ||||||||||||
[3] | 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, because the Group has the ability to exercise significant influence but does not have control over the investee. | ||||||||||||
[4] | In July 2014, the Group invested US$2,662 to acquire 55% equity interest in Zhishang Education, an online professional educational training platform. The Group has concluded that it does not have control over Zhishang Education because other investors have significant participating rights, but determined that it has the ability to exercise significant influence. Therefore the Group used the equity method to account for the investment. | ||||||||||||
[5] | 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 11.88% equity interests. These investments were classified as available-for-sale securities 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 in-substance 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 in common share using the equity method as the Group determined that it can exercise significant influence over Juesheng.com. | ||||||||||||
[6] | 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 security 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 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 in-substance 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 in common share using the equity method as the Group determined that it can exercise significant influence over Kouyu100. | ||||||||||||
[7] | 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. The investment was classified as available-for-sale security as the Group 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 gains of nil and US$19,407 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively. | ||||||||||||
[8] | 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 for convertible and redeemable preferred shares. These investments were classified as available-for-sale securities as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. As of May 31, 2016, the Company had 17.16% equity interests in Alo7.com on an as-converted basis. Unrealized holding gains of US$631, US$13,428 and US$1,704 were reported in other comprehensive income for the years ended May 31, 2014, 2015 and 2016, respectively. | ||||||||||||
[9] | 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 long-term investment as the Group determined that the shares were debt securities and unrealized holding gains of US$383 was reported in other comprehensive income for the year ended May 31, 2016. | ||||||||||||
[10] | In March 2014, the Group invested US$13,500 in Tarena, which is a service provider of IT professional education in China, for 2.96% ownership. This investment was classified as available-for-sale securities as Tarena is a NASDAQ listed company and the Group measured the investment subsequently at fair value. Unrealized holding loss of US$45, gain of US$3,495 and loss of US$1,005 were reported in other comprehensive income for the years ended May 31, 2014, 2015 and 2016, respectively. | ||||||||||||
[11] | 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. The investment was classified as available-for-sale security and measured at fair value. As there was no operation change or significant transaction occurred since the transaction date, the initial purchase price was considered the fair value of this investment as of May 31, 2016. | ||||||||||||
[12] | 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. The investment was classified as available-for-sale security as the Group 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 gains of nil and US$5,643 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively. | ||||||||||||
[13] | In September 2015, the Group invested US$8,500 to acquire 48,796,296 shares of Series B-1 convertible redeemable preferred shares for an 8.5% equity interests of Lele. Lele provides online learning and tutoring services for students from kindergarten through 12th grade. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. No unrealized holding gain or loss was reported in other comprehensive income for the year ended May 31, 2016 as the Group determined that there was no operation changes or significant transactions at the investee between the investment date and May 31, 2016. | ||||||||||||
[14] | In August 2015, the Group invested US$7,315 in an Assets management plan with a maturity of five years. The investment is managed together with another similar investment held by Mr. Yu and some other employees in the Group. The investment was classified as available-for-sale security as the Group determined that the investment was a debt security and measured the investment subsequently at fair value. Unrealized holding gains of US$61 was reported in other comprehensive income for the year ended May 31, 2016. | ||||||||||||
[15] | In July 2015, the Group invested US$2,844 to acquire 36% equity interest in STEMedu.cn, a company engaging in the business of providing service of education training. The investment was classified as available-for-sale security as the Group 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$3,148 was reported in other comprehensive income for the year ended May 31, 2016. | ||||||||||||
[16] | In November 2015, the Group entered into an investment agreement with Tangfeng which engages in the business of Chinese training to acquire 6% equity interest with a total cash consideration of US$1,831. The investment was classified as available-for-sale security as the Group 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$4,149 was reported in other comprehensive income for the year ended May 31, 2016. |
Long Term Investments - Sched80
Long Term Investments - Schedule of Long Term Investments (Parenthetical) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Mar. 31, 2016 | Nov. 30, 2015 | Oct. 31, 2015 | Aug. 31, 2015 | May 31, 2015 | Apr. 30, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2011 | May 31, 2016 | May 31, 2015 | May 31, 2014 | Jan. 31, 2016 | Sep. 30, 2015 | Jul. 31, 2015 | Sep. 30, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | Jul. 01, 2012 | Mar. 05, 2012 | |||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Proceed from disposal of Dajie.com | $ (540) | |||||||||||||||||||||||
Equity ownership interest | 50.00% | |||||||||||||||||||||||
Investment in two-year trust | $ 325,991 | $ 178,863 | $ 325,991 | |||||||||||||||||||||
Interest income | 66,861 | 66,605 | $ 44,880 | |||||||||||||||||||||
Long term investment due within one year | 118,816 | |||||||||||||||||||||||
Dajie.com Ltd [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Investment in subscription agreement | $ 2,000 | |||||||||||||||||||||||
Equity share in subscription agreement | 5.00% | |||||||||||||||||||||||
Proceed from disposal of Dajie.com | $ 540 | |||||||||||||||||||||||
Dongfangheli [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Investment for acquiring equity interest | $ 4,034 | |||||||||||||||||||||||
Equity ownership interest | 50.00% | |||||||||||||||||||||||
Juesheng.com [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Investment for acquiring equity interest | $ 501 | 501 | $ 3,006 | |||||||||||||||||||||
Equity ownership interest classified as available for sale | 11.88% | |||||||||||||||||||||||
Unrealized holding gains (loss) | 3,933 | |||||||||||||||||||||||
Kouyu 100 [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Unrealized holding gains (loss) | ||||||||||||||||||||||||
Equity ownership interest | 7.00% | |||||||||||||||||||||||
Cash consideration | $ 3,472 | |||||||||||||||||||||||
Golden Finance [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Unrealized holding gains (loss) | 19,407 | |||||||||||||||||||||||
Cash consideration | $ 11,437 | $ 3,398 | ||||||||||||||||||||||
Investment ownership interest | 19.50% | |||||||||||||||||||||||
Alo7.com [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Unrealized holding gains (loss) | $ 1,704 | 13,428 | 631 | |||||||||||||||||||||
Investment ownership interest | 17.16% | |||||||||||||||||||||||
Investment in two-year trust | $ 2,576 | $ 10,000 | $ 300 | $ 1,000 | ||||||||||||||||||||
Noncontrolling interest, equity ownership percentage | 3.40% | |||||||||||||||||||||||
Trust 556 [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Unrealized holding gains (loss) | $ 383 | |||||||||||||||||||||||
Investment in two-year trust | $ 15,654 | |||||||||||||||||||||||
Investment interest rate | 8.50% | |||||||||||||||||||||||
Tarena [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Equity ownership interest classified as available for sale | 2.96% | |||||||||||||||||||||||
Unrealized holding gains (loss) | (1,005) | 3,495 | (45) | |||||||||||||||||||||
Investment in two-year trust | $ 13,500 | |||||||||||||||||||||||
ROBOROBO [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Unrealized holding gains (loss) | 5,643 | |||||||||||||||||||||||
Investment ownership interest | 18.00% | |||||||||||||||||||||||
Investment in two-year trust | $ 4,356 | |||||||||||||||||||||||
STEMedu.cn [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Unrealized holding gains (loss) | 3,148 | |||||||||||||||||||||||
Investment ownership interest | 36.00% | |||||||||||||||||||||||
Investment in two-year trust | $ 2,844 | |||||||||||||||||||||||
TangFeng | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Unrealized holding gains (loss) | 4,149 | |||||||||||||||||||||||
Investment ownership interest | 6.00% | |||||||||||||||||||||||
Investment in two-year trust | $ 1,831 | |||||||||||||||||||||||
Convertible Bond [Member] | Shangjiachongye | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Investment in two-year trust | $ 12,310 | |||||||||||||||||||||||
Assets management plan | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Unrealized holding gains (loss) | $ 61 | |||||||||||||||||||||||
Investment in two-year trust | $ 7,315 | |||||||||||||||||||||||
Maturity period of long term investment | 5 years | |||||||||||||||||||||||
Held-to-maturity investments [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Investment in two-year trust | $ 247,480 | [1] | 247,480 | [1] | $ 64,537 | $ 80,671 | $ 96,805 | |||||||||||||||||
Long-term debt maturity period | 1 year | |||||||||||||||||||||||
Interest income | $ 20,771 | $ 20,882 | $ 1,404 | |||||||||||||||||||||
Series B One Redeemable Convertible Preferred Stock [Member] | Lele [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Equity ownership interest | 8.50% | |||||||||||||||||||||||
Investment in two-year trust | $ 8,500 | |||||||||||||||||||||||
Convertible redeemable preferred shares acquired | 48,796,296 | |||||||||||||||||||||||
Zhishang Education [Member] | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||
Investment for acquiring equity interest | $ 2,662 | |||||||||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 55.00% | |||||||||||||||||||||||
[1] | The Group's long-term held-to-maturity investments consist of trusts guaranteed by banks with the maturity more than one year, which are stated at their amortized cost. The trusts were invested in April, June and September 2014 with the amounts of US$96,805, US$80,671 and US$64,537, respectively, and interest income of US$1,404 and US$20,882 and US$20,771 was recognized in the consolidated statements of operations for the years ended May 31, 2014, 2015 and 2016, respectively. As of May 31, 2016, US$118,816 of the held-to-maturity investments were reclassified to long-term investments due within one year. |
Accrued Expenses and Other Cu81
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Schedule Of Other Liabilities [Line Items] | ||||
Accrued payroll | $ 131,151 | $ 103,270 | ||
Payable for purchase of property and equipment | 11,953 | 7,433 | ||
Amounts reimbursable to employees | [1] | 8,294 | 5,418 | |
Individual taxes withholding | 8,186 | 8,148 | ||
Refundable fees received from students | [2] | 5,755 | 10,023 | |
Business taxes payable | 5,259 | 9,701 | ||
Value added taxes payable | 6,506 | 1,147 | ||
Accrued advertising fees | 6,443 | 8,210 | ||
Rent payable | 6,285 | 3,883 | ||
Welfare payable | 6,004 | 6,213 | ||
Royalty fees payable | [3] | 3,637 | 2,565 | |
Refundable deposit | [4] | 3,161 | 1,956 | |
Accrued professional service fees | 2,352 | 1,683 | ||
Other taxes payable | 1,240 | 1,887 | ||
Investment payable | $ 4,594 | |||
Others | [5] | 10,818 | 5,814 | |
Total | $ 217,044 | 178,803 | ||
ROBOROBO [Member] | ||||
Schedule Of Other Liabilities [Line Items] | ||||
Investment payable | [6] | $ 1,452 | ||
[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. | |||
[6] | The balance as of May 31, 2015 represents a payable for an available-for-sale investment in ROBOROBO, which was fully paid in July 2015. |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | May 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Feb. 28, 2015 | Sep. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | May 31, 2013 | Jul. 31, 2012 | Jun. 30, 2011 | May 31, 2010 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | Jan. 01, 2008 | Jan. 01, 2007 | Jan. 20, 2006 |
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 | |||||||||||||||||
Number of shares repurchased from open market | 2,800,849 | 762,100 | 1,683,400 | |||||||||||||||
Treasury shares remain for future issuance | 939,990 | 939,990 | ||||||||||||||||
Share-based compensation | $ 16,810,000 | $ 15,689,000 | $ 20,079,000 | |||||||||||||||
Minimum percentage for exercise price of option | 100.00% | 100.00% | ||||||||||||||||
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 | 2,208,545 | |||||||||||||||||
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 | |||||||||||||||||
New share options granted | 0 | 0 | 0 | |||||||||||||||
Value of options exercised | $ 4,802,000 | $ 5,249,000 | $ 34,578,000 | |||||||||||||||
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 | 2,097,814 | |||||||||||||||||
Weighted-average grant date fair value, Granted | $ 22.66 | $ 19.26 | $ 22.80 | |||||||||||||||
Total fair value of shares vested | $ 15,235,000 | |||||||||||||||||
May 2010 [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
NES grant to employees | 556,848 | |||||||||||||||||
Granted shares vested date | Jun. 30, 2015 | |||||||||||||||||
June 2011 [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
NES grant to employees | 811,020 | |||||||||||||||||
Granted shares vested date | May 31, 2014 | |||||||||||||||||
July 2012 [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
NES grant to employees | 1,956,935 | |||||||||||||||||
Granted shares vested date | May 31, 2015 | |||||||||||||||||
May 2013 [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
NES grant to employees | 208,590 | |||||||||||||||||
Granted shares vested date | May 31, 2014 | |||||||||||||||||
July 2013 [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
NES grant to employees | 19,830 | |||||||||||||||||
Granted shares vested date | May 31, 2014 | |||||||||||||||||
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 2,015 | ||||||||||||||||||
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 | |||||||||||||||||
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 | $ 3,388,000 | $ 3,388,000 | ||||||||||||||||
Weighted-average period of recognition | 1 year 2 months 19 days | |||||||||||||||||
Non-Vested Equity Shares [Member] | May 2010 [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Weighted-average grant date fair value, Granted | $ 21.75 | |||||||||||||||||
Non-Vested Equity Shares [Member] | June 2011 [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Weighted-average grant date fair value, Granted | 25.11 | |||||||||||||||||
Non-Vested Equity Shares [Member] | July 2012 [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Weighted-average grant date fair value, Granted | 12.19 | |||||||||||||||||
Non-Vested Equity Shares [Member] | May 2013 [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Weighted-average grant date fair value, Granted | 20.33 | |||||||||||||||||
Non-Vested Equity Shares [Member] | July 2013 [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Weighted-average grant date fair value, Granted | 22.80 | |||||||||||||||||
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 | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Weighted-average grant date fair value, Granted | $ 22.69 | |||||||||||||||||
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, 2016 | May 31, 2015 | May 31, 2014 | |
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 | $ 22.66 | $ 19.26 | $ 22.80 |
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 | 8,608,671 | ||
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 | ||
January 2008 [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 | 2,720,000 | ||
Fair value of common shares | $ 12.75 | ||
Intrinsic value | $ 12.75 | ||
March 2008 [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 | 152,000 | ||
Fair value of common shares | $ 14 | ||
Intrinsic value | $ 14 | ||
July 2008 [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 | 278,500 | ||
Fair value of common shares | $ 13.75 | ||
Intrinsic value | $ 13.75 | ||
October 2008 [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 | 3,200 | ||
Fair value of common shares | $ 12.65 | ||
Intrinsic value | $ 12.65 | ||
May 2009 [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 | 205,548 | ||
Fair value of common shares | $ 12.75 | ||
Intrinsic value | $ 12.75 | ||
June 2009 [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 | 316,200 | ||
Fair value of common shares | $ 15.13 | ||
Intrinsic value | $ 15.13 | ||
May 2010 [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 | 556,848 | ||
Fair value of common shares | $ 21.75 | ||
Intrinsic value | $ 21.75 | ||
June 2011 [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 | 811,020 | ||
Fair value of common shares | $ 25.11 | ||
Intrinsic value | $ 25.11 | ||
July 2012 [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 | 1,956,935 | ||
Fair value of common shares | $ 12.19 | ||
Intrinsic value | $ 12.19 | ||
May 2013 [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 | 208,590 | ||
Fair value of common shares | $ 20.33 | ||
Intrinsic value | $ 20.33 | ||
July 2013 [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 | 19,830 | ||
Fair value of common shares | $ 22.80 | ||
Intrinsic value | $ 22.80 | ||
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 | 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 |
Share-Based Compensation - Su84
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, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | |
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 | 318,641 | 1,272,155 | 3,637,249 | |
Weighted number of options, Granted | 0 | 0 | 0 | |
Weighted number of options, Exercised | (240,304) | (953,514) | (2,113,094) | |
Weighted number of options, Forfeited | (252,000) | |||
Weighted number of options outstanding, Ending balance | 78,337 | 318,641 | 1,272,155 | 3,637,249 |
Weighted average exercise prices, Options outstanding, Beginning balance | $ 5.30 | $ 10.18 | $ 9.27 | |
Weighted number of options vested and expect to vest at May 31, 2016 | 78,337 | |||
Weighted average exercise prices, Granted | $ 0 | 0 | 0 | |
Weighted number of options exercisable at May 31, 2016 | 78,337 | |||
Weighted average exercise prices, Exercised | $ 5.03 | 11.81 | 8.37 | |
Weighted average exercise prices, Forfeited | 12.19 | |||
Weighted average exercise prices, Options outstanding, Ending balance | 6.13 | $ 5.30 | $ 10.18 | $ 9.27 |
Weighted average exercise prices, Options vested and expect to vest at May 31, 2016 | $ 6.13 | |||
Aggregate intrinsic value, Options outstanding, beginning balance | $ 5,903 | $ 19,898 | $ 47,503 | |
Weighted average exercise prices, Options exercisable at May 31, 2016 | $ 6.13 | |||
Remaining contractual life, Options outstanding | 6 months 29 days | 1 year 11 months 1 day | 6 years 2 months 12 days | 6 years 4 months 21 days |
Remaining contractual life, Options vested and expect to vest | 6 months 29 days | |||
Remaining contractual life, Options exercisable | 6 months 29 days | |||
Aggregate intrinsic value, Options outstanding, ending balance | $ 2,829 | $ 5,903 | $ 19,898 | |
Aggregate intrinsic value, Options vested and expect to vest at May 31, 2016 | 2,829 | |||
Aggregate intrinsic value, Options exercisable at May 31, 2016 | $ 2,829 |
Share-Based Compensation - Su85
Share-Based Compensation - Summary of NES Activities under 2006 Share Incentive Plan (Detail) - $ / shares | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Weighted-average grant date fair value, Granted | $ 22.66 | $ 19.26 | $ 22.80 |
2006 Share Incentive Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of NES, Beginning balance | 606,400 | 619,930 | 1,510,970 |
Number of NES, Granted | 546,330 | 833,670 | 19,830 |
Number of NES, Vested | (712,330) | (575,432) | (810,052) |
Number of NES, Forfeited | (40,400) | (271,768) | (100,818) |
Number of NES, Ending balance | 400,000 | 606,400 | 619,930 |
Weighted-average grant date fair value, Beginning balance | $ 18.55 | $ 12.39 | $ 13.45 |
Number of NES, vested and expect to vest at May 31, 2016 | 400,000 | ||
Weighted-average grant date fair value, Granted | $ 22.66 | 19.26 | 22.80 |
Weighted-average grant date fair value, Vested | 21.39 | 15.44 | 14.30 |
Weighted-average grant date fair value, Forfeited | 20.61 | 13.23 | 14.97 |
Weighted-average grant date fair value, Ending balance | 18.91 | 18.55 | 12.39 |
Weighted-average grant date intrinsic value, Beginning balance | 18.55 | 12.39 | 13.45 |
Weighted-average grant date fair value, NES vested and expect to vest at May 31, 2016 | 18.91 | ||
Weighted-average grant date intrinsic value, Granted | 22.66 | 19.26 | 22.80 |
Weighted-average grant date intrinsic value, Vested | 21.39 | 15.44 | 14.30 |
Weighted-average grant date intrinsic value, Forfeited | 20.61 | 13.23 | 14.97 |
Weighted-average grant date intrinsic value, Ending balance | 18.91 | $ 18.55 | $ 12.39 |
Weighted-average grant date intrinsic value, NES vested and expect to vest at May 31, 2016 | $ 18.91 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Current: | |||
PRC | $ 39,467 | $ 31,552 | $ 28,235 |
Deferred: | |||
PRC | (1,936) | (5,331) | (2,193) |
Total provision for income taxes | $ 37,531 | $ 26,221 | $ 26,042 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended | |||
May 31, 2016USD ($)$ / shares | May 31, 2016CNY (¥) | May 31, 2015USD ($)$ / shares | May 31, 2014USD ($)$ / shares | |
Income Taxes [Line Items] | ||||
Income tax rate | 14.04% | 14.04% | 11.89% | 10.71% |
Cash paid for dividend | $ 62,668,000 | $ 54,476,000 | ||
Valuation allowance | 3,624,000 | $ 2,952,000 | ||
Increase in valuation allowance | 672,000 | |||
Net operating loss | 39,270,000 | |||
Increase of income tax expense | $ 47,559,000 | $ 47,080,000 | $ 49,464,000 | |
Decrease in basic net income per share | $ / shares | $ 0.30 | $ 0.30 | $ 0.32 | |
Decrease in diluted net income per share | $ / shares | $ 0.30 | $ 0.30 | $ 0.31 | |
Withholding tax, dividends paid by PRC schools and subsidiaries to their foreign investors | 10.00% | |||
Aggregate undistributed earnings available for distribution | $ 1,133,217,000 | $ 789,338,000 | ||
Unrecognized tax benefits | 0 | 0 | $ 0 | |
Wholly owned subsidiaries [Member] | ||||
Income Taxes [Line Items] | ||||
Cash paid for dividend | 75,898,000 | 55,587,000 | ||
Withholding tax paid for the dividend | $ 7,590,000 | 5,559,000 | ||
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 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 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, 2017 | May 31, 2017 | ||
Latest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss expiration dates | May 31, 2021 | May 31, 2021 |
Income Taxes - Components of Gr
Income Taxes - Components of Group's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 | |
Current deferred tax assets | |||
Allowance doubtful accounts | [1] | $ 205 | |
Accrued expenses | [1] | 15,990 | |
Deferred revenue for incentive plan | [1] | 2,382 | |
Total current deferred tax assets | [1] | 18,577 | |
Less: valuation allowance | [1] | (589) | |
Current deferred tax assets, net | [1] | 17,988 | |
Non-current deferred tax assets | |||
Allowance doubtful accounts | [1] | $ 252 | |
Accrued expenses | [1] | 18,427 | |
Deferred revenue for incentive plan | [1] | 2,376 | |
Net operating loss carry-forwards | [1] | 6,910 | 7,403 |
Total non-current deferred tax assets | [1] | 27,965 | 7,403 |
Less: valuation allowance | [1] | (3,624) | (2,363) |
Non-current deferred tax assets, net | [1] | 24,341 | 5,040 |
Non-current deferred tax liabilities | |||
Acquired of non-current assets | [1] | (1,982) | (2,461) |
Total non-current deferred tax liabilities | [1] | $ (1,982) | $ (2,461) |
[1] | The Group chose to early adopt ASU 2015-17 and classified all deferred tax assets and liability as noncurrent as of May 31,2016. The Group did not retrospectively apply the changes to prior years. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates (Detail) | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 25.00% | 25.00% | 25.00% |
Effect of expenses not deductible for tax purposes | 4.57% | 4.91% | 4.33% |
Effect of tax holiday | (18.05%) | (20.82%) | (20.34%) |
Changes in valuation allowance | 0.25% | (0.59%) | (0.09%) |
Effect of dividend withholding tax | 2.27% | 3.39% | 1.81% |
Total provision for income taxes | 14.04% | 11.89% | 10.71% |
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, 2016 | May 31, 2015 | May 31, 2014 | |
Numerator used in basic and diluted net income per share: | |||
Net income attributable to New Oriental Education & Technology Group Inc | $ 224,884 | $ 193,013 | $ 215,704 |
Net income available for future distribution | $ 224,884 | $ 193,013 | $ 215,704 |
Shares (denominator): | |||
Weighted average common shares outstanding used in computing basic net income per share | 156,782,439 | 156,438,606 | 156,033,992 |
Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method | 609,247 | 863,568 | 1,869,472 |
Weighted average common shares outstanding used in computing diluted net income per share | 157,391,686 | 157,302,174 | 157,903,464 |
Net income per share | |||
- Basic | $ 1.43 | $ 1.23 | $ 1.38 |
- Diluted | $ 1.43 | $ 1.23 | $ 1.37 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Earnings Per Share [Abstract] | |||
Weighted average treasury shares excluded in computing basic net income per share | 1,596,948 | 1,940,781 | 2,345,395 |
Employee stock options excluded from the dilutive share calculation | 0 | 0 | 0 |
Related Party Transaction - Bal
Related Party Transaction - Balances and Transaction with Related Parties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2016 | May 31, 2015 | May 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - non current | $ 1,741 | $ 1,497 | ||
Amounts due from related parties - current | 4,539 | 3,586 | ||
Amounts due to related parties - current | 42 | 1,995 | ||
Gain on disposal of subsidiaries | 3,760 | $ 3,621 | ||
Revenue | 191 | |||
Non-Interest Bearing Loan [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | 2,518 | |||
Metropolis Holding China Limited [Member] | Chairman [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - non current | [1] | 1,741 | 1,497 | |
Amounts due from related parties - current | [1] | 637 | 1,096 | |
Rental expense | [1] | 7,139 | 5,298 | 4,173 |
MaxEn [Member] | Joint Venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [2] | 812 | 2,490 | |
Amounts due to related parties - current | [2] | 13 | 1,992 | |
Gain on disposal of subsidiaries | $ 3,621 | |||
Revenue | 177 | |||
Zhishang Education [Member] | Joint Venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties - current | $ 3 | |||
Haiwei Career [Member] | Joint Venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [3] | 1,553 | ||
Haiwei Career [Member] | Joint Venture [Member] | Non-Interest Bearing Loan [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [3] | 1,520 | ||
Dianshijingwei [Member] | Long-term investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [4] | 1,520 | ||
Weixuemingri [Member] | Joint Venture [Member] | Non-Interest Bearing Loan [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [5] | 998 | ||
Beijing Tongban Education & Technology Co. Ltd. [Member] | Long-term investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 3 | |||
STEMedu.cn [Member] | Long-term investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 11 | |||
Cost | 30 | |||
Others [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [6] | 17 | ||
Amounts due to related parties - current | [6] | $ 29 | ||
[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 chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2016, the current and non-current amounts due from Metropolis Holding China Limited were US$637 and US$1,741, 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 September 2012, MaxEn became a joint venture of the Group. As a result, MaxEn became a related party of the Group thereafter. As of May 31, 2016, the amount due from MaxEn was US$812, which represented MaxEn's pre-operating expenses of US$377 prepaid by the Group, US$91 payable to Beijing Decision for service fee and unpaid consideration of US$344 for disposal of North Star; the amount due to MaxEn was US$13, which represented miscellaneous payments paid for the Group. The amount due to MaxEn is non-interest bearing and unsecured and has no fixed repayment terms. | |||
[3] | 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, 2016, the amount due from Haiwei Career, was US$1,553 in which US$1,520 represented loans from the Group to Haiwei Career with non-interest bearing for its daily operation supporting. All the loans are payable within one year. | |||
[4] | 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. | |||
[5] | As of May 31, 2016, the Group lent non-interest bearing loan with a total amount of US$998 to Weixuemingri to support its daily operation. The Group fully wrote off the outstanding loan in the same year. | |||
[6] | As of May 31, 2016, the balance in "others" included the current receivables from long-term investees of Tongban, Goldern Finance and STEMedu.cn. |
Related Party Transaction - B93
Related Party Transaction - Balances and Transaction with Related Parties (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | ||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | $ 4,539 | $ 3,586 | |
Amounts due from related parties, non-current | 1,741 | 1,497 | |
Metropolis Holding China Limited [Member] | Chairman [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | [1] | 637 | 1,096 |
Amounts due from related parties, non-current | [1] | 1,741 | 1,497 |
MaxEn [Member] | Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | [2] | 812 | $ 2,490 |
MaxEn [Member] | Joint Venture [Member] | Pre-operating Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | 377 | ||
MaxEn [Member] | Joint Venture [Member] | Service Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | 91 | ||
MaxEn [Member] | Joint Venture [Member] | Unpaid Consideration [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | 344 | ||
MaxEn [Member] | Joint Venture [Member] | Miscellaneous Payments [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | 13 | ||
Haiwei Career [Member] | Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | [3] | 1,553 | |
Non-Interest Bearing Loan [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | 2,518 | ||
Non-Interest Bearing Loan [Member] | Haiwei Career [Member] | Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | [3] | $ 1,520 | |
Loans paid off period | 1 year | ||
Non-Interest Bearing Loan [Member] | Weixuemingri [Member] | Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties, current | [4] | $ 998 | |
[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 chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2016, the current and non-current amounts due from Metropolis Holding China Limited were US$637 and US$1,741, 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 September 2012, MaxEn became a joint venture of the Group. As a result, MaxEn became a related party of the Group thereafter. As of May 31, 2016, the amount due from MaxEn was US$812, which represented MaxEn's pre-operating expenses of US$377 prepaid by the Group, US$91 payable to Beijing Decision for service fee and unpaid consideration of US$344 for disposal of North Star; the amount due to MaxEn was US$13, which represented miscellaneous payments paid for the Group. The amount due to MaxEn is non-interest bearing and unsecured and has no fixed repayment terms. | ||
[3] | 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, 2016, the amount due from Haiwei Career, was US$1,553 in which US$1,520 represented loans from the Group to Haiwei Career with non-interest bearing for its daily operation supporting. All the loans are payable within one year. | ||
[4] | As of May 31, 2016, the Group lent non-interest bearing loan with a total amount of US$998 to Weixuemingri to support its daily operation. The Group fully wrote off the outstanding loan in the same year. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Operating Leased Assets [Line Items] | |||
Rent expenses for cancelable and non-cancelable leases | $ 173,797 | $ 157,523 | $ 142,032 |
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease term | 10 years |
Commitments and Contingencies95
Commitments and Contingencies - Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands | May 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 149,265 |
2,018 | 126,088 |
2,019 | 98,760 |
2,020 | 74,714 |
2,021 | 46,702 |
Thereafter | 51,483 |
Operating Leases, Future Minimum Payments Due, Total | $ 547,012 |
Commitments and Contingencies96
Commitments and Contingencies - Future Minimum Capital Commitments under Non-Cancelable Construction (Detail) $ in Thousands | May 31, 2016USD ($) |
Capital Lease Obligations [Line Items] | |
Capital commitment | $ 9,427 |
Purchase of Property and Equipment [Member] | |
Capital Lease Obligations [Line Items] | |
Capital commitment | 1,389 |
Leasehold Improvements [Member] | |
Capital Lease Obligations [Line Items] | |
Capital commitment | $ 8,038 |
Noncontrolling Interests - Summ
Noncontrolling Interests - Summary of Changes in Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Noncontrolling Interest [Line Items] | ||
Beginning balance | $ 3,496 | |
Capital injection from noncontrolling interest shareholders | 28,919 | $ 3,791 |
Capital repurchase from noncontrolling interest shareholders | (3,497) | |
Unrealized gain on available-for-sale securities attributed to noncontrolling interest shareholders | 999 | |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (271) | |
Gain (loss) attributed to noncontrolling interest shareholders | 444 | (295) |
Ending balance | 30,090 | 3,496 |
Koolearn Corporation [Member] | ||
Noncontrolling Interest [Line Items] | ||
Beginning balance | 3,458 | |
Capital injection from noncontrolling interest shareholders | 3,752 | |
Capital repurchase from noncontrolling interest shareholders | (3,497) | |
Gain (loss) attributed to noncontrolling interest shareholders | 39 | (294) |
Ending balance | 3,458 | |
Beijing New Oriental Xuncheng Network Technology Company Limited [Member] | ||
Noncontrolling Interest [Line Items] | ||
Capital injection from noncontrolling interest shareholders | 28,737 | |
Unrealized gain on available-for-sale securities attributed to noncontrolling interest shareholders | 999 | |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (269) | |
Gain (loss) attributed to noncontrolling interest shareholders | 423 | |
Ending balance | 29,890 | |
Beijing New Road Information Consulting Services Co., Ltd. [Member] | ||
Noncontrolling Interest [Line Items] | ||
Beginning balance | 38 | |
Capital injection from noncontrolling interest shareholders | 39 | |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (2) | |
Gain (loss) attributed to noncontrolling interest shareholders | 3 | (1) |
Ending balance | 39 | $ 38 |
Jinzhou New Oriental Training School [Member] | ||
Noncontrolling Interest [Line Items] | ||
Capital injection from noncontrolling interest shareholders | 182 | |
Gain (loss) attributed to noncontrolling interest shareholders | (21) | |
Ending balance | $ 161 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||||
Feb. 28, 2015 | May 31, 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 | 12.50% | 21.00% | |||
Noncontrolling interest, ownership percentage by parent | 69.12% | ||||
Jinzhou New Oriental Training School [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, equity percentage | 40.00% | ||||
Noncontrolling interest, ownership percentage by parent | 60.00% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 7 | 6 | 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, 2016 | May 31, 2015 | May 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 1,478,348 | $ 1,246,766 | $ 1,138,887 |
Operating costs and expenses: | |||
Cost of revenues | (614,364) | (526,320) | (451,669) |
Selling and marketing | (197,897) | (188,483) | (169,062) |
General and administrative | (471,010) | (378,434) | (324,210) |
Total operating costs and expenses | (1,283,271) | (1,093,237) | (944,941) |
Gain on disposal of subsidiaries | 3,760 | 3,621 | |
Operating income | 198,837 | 153,529 | 197,567 |
Total assets | 2,354,834 | 1,951,537 | 1,603,545 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,478,348 | 1,246,766 | 1,138,887 |
Operating costs and expenses: | |||
Cost of revenues | (614,364) | (526,320) | (451,669) |
Selling and marketing | (174,814) | (166,276) | (147,057) |
General and administrative | (365,181) | (304,770) | (250,172) |
Total operating costs and expenses | (1,283,271) | (1,093,237) | (944,941) |
Gain on disposal of subsidiaries | 3,760 | 3,621 | |
Operating income | 198,837 | 153,529 | 197,567 |
Total assets | 1,610,880 | 1,311,508 | 1,020,841 |
Corporate, Non-Segment [Member] | |||
Operating costs and expenses: | |||
Total operating costs and expenses | (128,912) | (95,871) | (96,043) |
Total assets | 743,954 | 640,029 | 582,704 |
Language Training and Test Preparation Course [Member] | |||
Operating costs and expenses: | |||
Total assets | 1,120,580 | 937,020 | 709,979 |
Language Training and Test Preparation Course [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,238,572 | 1,040,380 | 969,947 |
Operating costs and expenses: | |||
Cost of revenues | (516,370) | (442,994) | (388,998) |
Selling and marketing | (125,815) | (122,697) | (112,092) |
General and administrative | (296,686) | (245,315) | (204,679) |
Total operating costs and expenses | (938,871) | (811,006) | (705,769) |
Operating income | 299,701 | 229,374 | 264,178 |
Total assets | 1,120,580 | 937,020 | 709,979 |
Primary and Secondary Education [Member] | |||
Operating costs and expenses: | |||
Total assets | 78,556 | 75,046 | 65,357 |
Primary and Secondary Education [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 30,011 | 26,735 | 24,063 |
Operating costs and expenses: | |||
Cost of revenues | (9,812) | (9,083) | (8,488) |
Selling and marketing | (744) | (1,039) | (956) |
General and administrative | (12,558) | (10,068) | (8,748) |
Total operating costs and expenses | (23,114) | (20,190) | (18,192) |
Operating income | 6,897 | 6,545 | 5,871 |
Total assets | 78,556 | 75,046 | 65,357 |
Others [Member] | |||
Operating costs and expenses: | |||
Total assets | 411,744 | 299,442 | 245,505 |
Others [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 209,765 | 179,651 | 144,877 |
Operating costs and expenses: | |||
Cost of revenues | (88,182) | (74,243) | (54,183) |
Selling and marketing | (48,255) | (42,540) | (34,009) |
General and administrative | (55,937) | (49,387) | (36,745) |
Total operating costs and expenses | (192,374) | (166,170) | (124,937) |
Gain on disposal of subsidiaries | 3,760 | 3,621 | |
Operating income | 21,151 | 13,481 | 23,561 |
Total assets | $ 411,744 | $ 299,442 | $ 245,505 |
Mainland China Contribution 101
Mainland China Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Contributions for employee benefits | $ 71,434 | $ 61,448 | $ 52,159 |
Statutory Reserve - Additional
Statutory Reserve - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Statutory Accounting Practices [Line Items] | |||
Percentage allocation of profits to general reserves | 10.00% | ||
Registered capital | 50.00% | ||
Accrued for general reserve | $ 695 | $ 530 | $ 1,029 |
Equity restructure in subsidiary | $ (766) | ||
Percentage allocation of profits to development fund | 25.00% | ||
Group transfers to the statutory reserves | $ 31,853 | 23,742 | 22,145 |
Development fund [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Appropriations to reserves | $ 31,158 | $ 23,212 | $ 21,116 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Restricted Net Assets [Line Items] | ||
Restricted net assets | $ 358,956 | $ 270,674 |
Variable interest entities (VIEs) [Member] | Paid-in capital and statutory reserves [Member] | ||
Restricted Net Assets [Line Items] | ||
Restricted net assets | 292,542 | 216,526 |
Wholly owned subsidiaries [Member] | Paid-in capital and statutory reserves [Member] | ||
Restricted Net Assets [Line Items] | ||
Restricted net assets | $ 66,414 | $ 54,148 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 31, 2016 | May 31, 2016 | Jan. 31, 2016 | May 31, 2015 |
Subsequent Event [Line Items] | ||||
Long term investments | $ 178,863 | $ 325,991 | ||
Convertible Bond [Member] | Shangjiachongye | ||||
Subsequent Event [Line Items] | ||||
Long term investments | $ 12,310 | |||
Subsequent Event [Member] | Redeemable Preferred Shares [Member] | Shangjiachongye | ||||
Subsequent Event [Line Items] | ||||
Equity interest held | 9.80% | |||
Subsequent Event [Member] | Redeemable Preferred Shares [Member] | Shangjiachongye | Converted All the Convertible Bonds [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity interest held | 4.90% | |||
Subsequent Event [Member] | Redeemable Preferred Shares [Member] | Shangjiachongye | Additionally Invested [Member] | ||||
Subsequent Event [Line Items] | ||||
Long term investments | $ 12,205 | |||
Equity interest held | 4.90% |
Schedule I - Condensed Finan105
Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 709,209 | $ 531,298 | $ 371,593 | $ 417,166 |
Term deposit | 86,706 | 69,091 | ||
Prepaid expense and other current assets | 99,677 | 97,833 | ||
Amounts due from related parties | 4,539 | 3,586 | ||
Total current assets | 1,869,336 | 1,348,880 | ||
Long-term investments | 178,863 | 325,991 | ||
Total assets | 2,354,834 | 1,951,537 | 1,603,545 | |
Current liabilities: | ||||
Accrued expenses and other current liabilities | 217,044 | 178,803 | ||
Amounts due to related parties | 42 | 1,995 | ||
Total current liabilities | 918,190 | 725,232 | ||
Equity: | ||||
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2015 and 2016; 158,379,387 shares issued as of May 31, 2015 and 2016; 156,486,763 and 157,439,397 shares outstanding as of May 31, 2015 and 2016, respectively) | 1,584 | 1,584 | ||
Treasury stock | (9) | (19) | ||
Additional paid-in capital | 223,422 | 141,653 | ||
Retained earnings | 931,930 | 824,015 | ||
Accumulated other comprehensive income | 62,948 | 99,505 | ||
Total New Oriental Education & Technology Group Inc. shareholders' equity | 1,404,572 | 1,220,348 | ||
Total liabilities and equity | 2,354,834 | 1,951,537 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 11,984 | 22,748 | 15,874 | 28,653 |
Term deposit | 10,000 | |||
Prepaid expense and other current assets | 5,900 | 10,780 | ||
Amounts due from related parties | 16,758 | 25,696 | ||
Total current assets | 44,642 | 59,224 | ||
Long-term investments | 96,498 | 51,902 | ||
Investments in subsidiaries and VIEs | 1,353,090 | 1,194,328 | ||
Total assets | 1,494,230 | 1,305,454 | ||
Current liabilities: | ||||
Accrued expenses and other current liabilities | 6,016 | 9,689 | ||
Amounts due to related parties | 83,642 | 75,417 | ||
Total current liabilities | 89,658 | 85,106 | ||
Equity: | ||||
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2015 and 2016; 158,379,387 shares issued as of May 31, 2015 and 2016; 156,486,763 and 157,439,397 shares outstanding as of May 31, 2015 and 2016, respectively) | 1,584 | 1,584 | ||
Treasury stock | (9) | (19) | ||
Additional paid-in capital | 223,422 | 141,653 | ||
Retained earnings | 1,116,627 | 977,625 | ||
Accumulated other comprehensive income | 62,948 | 99,505 | ||
Total New Oriental Education & Technology Group Inc. shareholders' equity | 1,404,572 | 1,220,348 | $ 1,025,758 | $ 857,252 |
Total liabilities and equity | $ 1,494,230 | $ 1,305,454 |
Schedule I - Condensed Finan106
Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Parenthetical) (Detail) - $ / shares | May 31, 2016 | May 31, 2015 |
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 | 157,439,397 | 156,486,763 |
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 | 157,439,397 | 156,486,763 |
Schedule I - Condensed Finan107
Schedule I - Condensed Financial Information of Parent Company - Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Operating costs and expenses: | |||
General and administrative | $ 471,010 | $ 378,434 | $ 324,210 |
Total operating costs and expenses | 1,283,271 | 1,093,237 | 944,941 |
Operating loss | 198,837 | 153,529 | 197,567 |
Interest income | 66,861 | 66,605 | 44,880 |
Equity in earnings of subsidiaries and VIEs | (4,425) | (1,537) | (1,453) |
Net income attributable to New Oriental Education & Technology Group Inc. | 224,884 | 193,013 | 215,704 |
Parent Company [Member] | |||
Operating costs and expenses: | |||
General and administrative | 16,732 | 12,963 | 20,435 |
Total operating costs and expenses | 16,732 | 12,963 | 20,435 |
Operating loss | (16,732) | (12,963) | (20,435) |
Interest income | 1 | 2 | 1 |
Equity in earnings of subsidiaries and VIEs | 241,615 | 205,974 | 236,138 |
Net income attributable to New Oriental Education & Technology Group Inc. | $ 224,884 | $ 193,013 | $ 215,704 |
Schedule I - Condensed Finan108
Schedule I - Condensed Financial Information of Parent Company - Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income | $ 224,884 | $ 193,013 | $ 215,704 |
Other comprehensive income, net of tax | |||
Foreign currency translation adjustment | (72,464) | 12,006 | (17,894) |
Unrealized gain on available-for-sale securities, net of tax effect of nil, nil and nil for years ended May 31, 2014, 2015 and 2016 | 36,635 | 21,940 | 586 |
Other comprehensive (loss) / income | (35,829) | 33,946 | (17,308) |
Comprehensive income | 188,327 | 226,959 | 198,396 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 224,884 | 193,013 | 215,704 |
Other comprehensive income, net of tax | |||
Foreign currency translation adjustment | (72,193) | 12,006 | (17,894) |
Unrealized gain on available-for-sale securities, net of tax effect of nil, nil and nil for years ended May 31, 2014, 2015 and 2016 | 35,636 | 21,940 | 586 |
Other comprehensive (loss) / income | (36,557) | 33,946 | (17,308) |
Comprehensive income | $ 188,327 | $ 226,959 | $ 198,396 |
Schedule I - Condensed Finan109
Schedule I - Condensed Financial Information of Parent Company - Statements of Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale securities, tax effect | |||
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale securities, tax effect | $ 0 | $ 0 | $ 0 |
Schedule I - Condensed Finan110
Schedule I - Condensed Financial Information of Parent Company - Statements of Changes in Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||||
May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | |||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Beginning Balance | $ 1,220,348 | |||||||
Beginning Balance, shares | 158,379,387 | |||||||
Issuance of ADS shares for the exercises of employee share options | $ 7,848 | |||||||
Reissuance of treasury stock for the exercises of employee share options | $ 2,431 | $ 11,362 | 13,524 | |||||
Reissuance of treasury stock for the exercises of employee share options, shares | 2,208,545 | |||||||
Reissuance of treasury stock for Non-vested equity shares vested, shares | 2,097,814 | |||||||
Share based compensation expense | $ 16,810 | 15,689 | 20,079 | |||||
Dividend declared | (62,668) | [1] | (54,476) | [2] | ||||
Share repurchase | $ (59,420) | [3] | $ (16,865) | [4] | ||||
Share repurchase, shares | (2,800,849) | (762,100) | (1,683,400) | |||||
Net income | 224,884 | $ 193,013 | $ 215,704 | |||||
Capital injection of noncontrolling interests | 68,498 | 3,791 | ||||||
Repurchase share from noncontrolling interest | (3,752) | |||||||
Equity restructuring of Xuncheng | (766) | |||||||
Foreign currency translation adjustment | (72,464) | 12,006 | (17,894) | |||||
Unrealized gain on available-for-sale securities, net of tax effect of nil | 36,635 | 21,940 | $ 586 | |||||
Ending Balance | $ 1,404,572 | $ 1,220,348 | ||||||
Ending Balance, shares | 158,379,387 | 158,379,387 | ||||||
Common Shares [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Beginning Balance, shares | 156,486,763 | 157,758,666 | 156,695,987 | |||||
Issuance of ADS shares for the exercises of employee share options | $ 11 | |||||||
Reissuance of treasury stock for the exercises of employee share options, shares | 240,304 | 953,514 | 1,014,727 | |||||
Reissuance of treasury stock for Non-vested equity shares vested, shares | 712,330 | 575,432 | 810,052 | |||||
Share repurchase, shares | (2,800,849) | [3] | (762,100) | [4] | ||||
Ending Balance, shares | 157,439,397 | 156,486,763 | 157,758,666 | 156,695,987 | ||||
Additional Paid-in Capital [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Issuance of ADS shares for the exercises of employee share options | $ 7,837 | |||||||
Reissuance of treasury stock for the exercises of employee share options | $ 2,428 | $ 11,353 | 13,514 | |||||
Reissuance of treasury stock for Non-vested equity shares vested | (7) | (6) | (8) | |||||
Share based compensation expense | 16,810 | 15,689 | 20,079 | |||||
Dividend declared | [2] | (14,891) | ||||||
Share repurchase | (59,392) | [3] | (16,858) | [4] | ||||
Capital injection of noncontrolling interests | 39,579 | |||||||
Repurchase share from noncontrolling interest | (255) | |||||||
Equity restructuring of Xuncheng | [5] | 23,214 | ||||||
Treasury Stock [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Reissuance of treasury stock for the exercises of employee share options | 3 | 9 | 10 | |||||
Reissuance of treasury stock for Non-vested equity shares vested | 7 | 6 | 8 | |||||
Share repurchase | (28) | [3] | (7) | [4] | ||||
Retained Earnings [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Dividend declared | (62,668) | [1] | (39,585) | [2] | ||||
Equity restructuring of Xuncheng | [5] | (22,448) | ||||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Foreign currency translation adjustment | (72,193) | 12,006 | (17,894) | |||||
Unrealized gain on available-for-sale securities, net of tax effect of nil | 35,636 | 21,940 | 586 | |||||
Parent Company [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Beginning Balance | $ 1,220,348 | 1,025,758 | 857,252 | |||||
Beginning Balance, shares | 158,379,387 | |||||||
Issuance of ADS shares for the exercises of employee share options | 7,848 | |||||||
Reissuance of treasury stock for the exercises of employee share options | $ 2,431 | 11,362 | 13,524 | |||||
Share based compensation expense | 16,810 | 15,689 | 20,079 | |||||
Dividend declared | (62,668) | (54,476) | ||||||
Share repurchase | (59,420) | (16,865) | ||||||
Net income | 224,884 | 193,013 | 215,704 | |||||
Capital injection of noncontrolling interests | 39,579 | |||||||
Repurchase share from noncontrolling interest | (255) | |||||||
Foreign currency translation adjustment | (72,193) | 12,006 | (17,894) | |||||
Unrealized gain on available-for-sale securities, net of tax effect of nil | 35,636 | 21,940 | 586 | |||||
Ending Balance | $ 1,404,572 | $ 1,220,348 | 1,025,758 | $ 857,252 | ||||
Ending Balance, shares | 158,379,387 | 158,379,387 | ||||||
Parent Company [Member] | Common Shares [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Beginning Balance | $ 1,584 | $ 1,584 | $ 1,573 | |||||
Beginning Balance, shares | 156,486,763 | 157,758,666 | 156,695,987 | |||||
Issuance of ADS shares for the exercises of employee share options | $ 11 | |||||||
Reissuance of treasury stock for the exercises of employee share options, shares | 240,304 | 953,514 | 1,014,727 | |||||
Reissuance of treasury stock for Non-vested equity shares vested, shares | 712,330 | 575,432 | 810,052 | |||||
Share repurchase, shares | (2,800,849) | (762,100) | ||||||
Ending Balance | $ 1,584 | $ 1,584 | $ 1,584 | $ 1,573 | ||||
Ending Balance, shares | 157,439,397 | 156,486,763 | 157,758,666 | 156,695,987 | ||||
Parent Company [Member] | Additional Paid-in Capital [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Beginning Balance | $ 141,653 | $ 174,009 | $ 164,336 | |||||
Issuance of ADS shares for the exercises of employee share options | 7,837 | |||||||
Reissuance of treasury stock for the exercises of employee share options | 2,428 | 11,353 | 13,514 | |||||
Reissuance of treasury stock for Non-vested equity shares vested | (7) | (6) | (8) | |||||
Share based compensation expense | 16,810 | 15,689 | 20,079 | |||||
Dividend declared | (14,891) | |||||||
Share repurchase | (59,392) | (16,858) | ||||||
Capital injection of noncontrolling interests | 39,579 | |||||||
Repurchase share from noncontrolling interest | (255) | |||||||
Equity restructuring of Xuncheng | 23,214 | |||||||
Ending Balance | 223,422 | 141,653 | 174,009 | $ 164,336 | ||||
Parent Company [Member] | Treasury Stock [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Beginning Balance | (19) | (6) | (17) | |||||
Reissuance of treasury stock for the exercises of employee share options | 3 | 9 | 10 | |||||
Reissuance of treasury stock for Non-vested equity shares vested | 7 | 6 | 8 | |||||
Share repurchase | (28) | (7) | ||||||
Ending Balance | (9) | (19) | (6) | (17) | ||||
Parent Company [Member] | Retained Earnings [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Beginning Balance | 977,625 | 784,612 | 608,493 | |||||
Dividend declared | (62,668) | (39,585) | ||||||
Net income | 224,884 | 193,013 | 215,704 | |||||
Equity restructuring of Xuncheng | (23,214) | |||||||
Ending Balance | 1,116,627 | 977,625 | 784,612 | 608,493 | ||||
Parent Company [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Beginning Balance | 99,505 | 65,559 | 82,867 | |||||
Foreign currency translation adjustment | (72,193) | 12,006 | (17,894) | |||||
Unrealized gain on available-for-sale securities, net of tax effect of nil | 35,636 | 21,940 | 586 | |||||
Ending Balance | $ 62,948 | $ 99,505 | $ 65,559 | $ 82,867 | ||||
[1] | 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. | |||||||
[2] | On July 23, 2013, the Company declared a special cash dividend in the amount of US$0.35 per ADS. The aggregate amount of cash dividend paid was US$54,476, of which US$39,585 and US$14,891 were funded by retained earnings and additional paid in capital, respectively. The dividend was fully paid on October 7, 2013 to shareholders of record at the close of business on September 6, 2013. | |||||||
[3] | 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. | |||||||
[4] | On April 23, 2013, the Company's board of directors authorized the repurchase of up to US$50,000 of the Company's shares during the period from April 29, 2013, through July 31, 2013 to facilitate the future vesting of options or non-vested equity shares. 1,683,400 and 762,100 shares were repurchased in the years ended May 31, 2013 and 2014, respectively. | |||||||
[5] | In January 2016, Beijing New Oriental Xuncheng Network Technology Co., Ltd. ("Xuncheng"), a subsidiary of the Group, transformed from a limited liability company to a joint stock limited company. The Group's accumulated retained earnings and statutory reserve related to Xuncheng were reclassified to additional paid-in-capital in the consolidation financials statements. |
Schedule I - Condensed Finan111
Schedule I - Condensed Financial Information of Parent Company - Statements of Changes in Equity (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale securities, tax effect | |||
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale securities, tax effect | $ 0 | $ 0 | $ 0 |
Schedule I - Condensed Finan112
Schedule I - Condensed Financial Information of Parent Company - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 224,884 | $ 193,013 | $ 215,704 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Equity in earnings of subsidiaries | 4,425 | 1,537 | 1,453 |
Share-based compensation expense | 16,810 | 15,689 | 20,079 |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | (7,711) | (22,503) | (20,168) |
Accrued expenses and other current liabilities | 47,945 | 11,120 | 44,775 |
Amounts due from/to related parties | (1,887) | 1,994 | (1,097) |
Net cash provided by (used in) operating activities | 517,894 | 374,145 | 361,345 |
Cash flows from investing activities | |||
Payment for available-for-sale investments | (78,764) | (26,076) | (16,076) |
Proceed from investment withdrawn in Dajie.com | 540 | ||
Net cash used in investing activities | (309,737) | (173,417) | (344,377) |
Cash flows from financing activities: | |||
Proceeds from issuance of common shares upon exercise of share options | 2,176 | 11,332 | 21,849 |
Cash paid for shares repurchase | (59,420) | (21,487) | |
Cash paid for dividend | (62,668) | (54,476) | |
Net cash (used in) provided by financing activities | 5,503 | (44,297) | (54,114) |
Net change in cash and cash equivalents | 177,911 | 159,705 | (45,573) |
Cash and cash equivalents at beginning of year | 531,298 | 371,593 | 417,166 |
Cash and cash equivalents at end of year | 709,209 | 531,298 | 371,593 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income | 224,884 | 193,013 | 215,704 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Equity in earnings of subsidiaries | (241,615) | (205,974) | (236,138) |
Dividend received from subsidiaries | 49,984 | 83,728 | |
Share-based compensation expense | 16,810 | 15,689 | 20,079 |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | 5,135 | (2,613) | (2,958) |
Accrued expenses and other current liabilities | (3,673) | (2,728) | 4,988 |
Amounts due from/to related parties | (1,446) | (762) | (849) |
Net cash provided by (used in) operating activities | 50,079 | (3,375) | 84,554 |
Cash flows from investing activities | |||
Investments in term deposits | (10,000) | ||
Payment for available-for-sale investments | (9,500) | (10,300) | (16,076) |
Proceed from investment withdrawn in Dajie.com | 540 | ||
Loan to related parties | 1,487 | (6,423) | |
Repayment from related parties | 8,512 | 15,500 | |
Net cash used in investing activities | (8,961) | (16,723) | (576) |
Cash flows from financing activities: | |||
Proceeds from issuance of common shares upon exercise of share options | 2,176 | 11,332 | 21,849 |
Loan from related party | 8,610 | 75,060 | |
Loan repayment to related party | (42,643) | ||
Cash paid for shares repurchase | (59,420) | (21,487) | |
Cash paid for dividend | (62,668) | (54,476) | |
Net cash (used in) provided by financing activities | (51,882) | 26,972 | (96,757) |
Net change in cash and cash equivalents | (10,764) | 6,874 | (12,779) |
Cash and cash equivalents at beginning of year | 22,748 | 15,874 | 28,653 |
Cash and cash equivalents at end of year | $ 11,984 | $ 22,748 | $ 15,874 |
Schedule I - Related Party Tran
Schedule I - Related Party Transactions - Related Party Balances (Detail) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Amount due from related parties: | ||
Subtotal of amount due from related parties | $ 4,539 | $ 3,586 |
Amount due to related parties: | ||
Subtotal of amount due to related parties | 42 | 1,995 |
Parent Company [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 16,758 | 25,696 |
Amount due to related parties: | ||
Subtotal of amount due to related parties | 83,642 | 75,417 |
Parent Company [Member] | Winner Park [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 12 | 12 |
Parent Company [Member] | Smart Shine [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 8,512 | |
Amount due to related parties: | ||
Subtotal of amount due to related parties | 1,487 | |
Parent Company [Member] | Elite Concept Holdings Limited [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 9,897 | 8,631 |
Amount due to related parties: | ||
Subtotal of amount due to related parties | 357 | 357 |
Parent Company [Member] | New Oriental China [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | 6,669 | 8,541 |
Parent Company [Member] | Abundant State Limited [Member] | ||
Amount due to related parties: | ||
Subtotal of amount due to related parties | 81,798 | $ 75,060 |
Parent Company [Member] | Koolearn Holding Limited [Member] | ||
Amount due from related parties: | ||
Subtotal of amount due from related parties | $ 180 |