Document And Entity Information
Document And Entity Information | 12 Months Ended |
Feb. 28, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Feb. 28, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | TAL Education Group |
Current Fiscal Year End Date | --02-28 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Trading Symbol | TAL |
Entity Central Index Key | 1,499,620 |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 118,401,821 |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 70,556,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | |
Current assets | |||
Cash and cash equivalents | $ 711,519,091 | $ 470,217,004 | |
Restricted cash-current | 6,266,671 | 2,732,559 | |
Short-term investments | 787,390,754 | 229,456,397 | |
Amounts due from related parties-current | [1] | 3,228,839 | 3,424,285 |
Inventory | 5,271,710 | 2,823,039 | |
Income tax receivable | 15,093,207 | 2,244,898 | |
Prepaid expenses and other current assets | 133,235,873 | 160,222,823 | |
Total current assets | 1,662,006,145 | 871,121,005 | |
Restricted cash-non-current | 9,910,866 | 5,660,713 | |
Property and equipment, net | 247,265,848 | 154,306,718 | |
Deferred tax assets-non-current | 17,361,013 | 16,188,301 | |
Rental deposits | 47,332,671 | 32,659,360 | |
Intangible assets, net | 43,504,780 | 37,966,808 | |
Goodwill | 291,382,129 | 267,162,685 | |
Long-term investments | 597,605,775 | 347,732,444 | |
Long-term prepayments and other non-current assets | 138,189,853 | 96,107,917 | |
Total assets | 3,054,559,080 | 1,828,905,951 | |
Current liabilities | |||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to TAL Education Group of $20,905,226 and $51,809,468 as of February 28, 2017 and February 28, 2018, respectively) | 57,605,414 | 22,637,199 | |
Deferred revenue-current (including deferred revenue-current of the consolidated VIEs without recourse to TAL Education Group of $465,944,822 and $772,642,292 as of February 28, 2017 and February 28, 2018, respectively) | 824,276,004 | 504,147,032 | |
Amounts due to related parties-current (including amounts due to related parties-current of the consolidated VIEs without recourse to TAL Education Group of $192,785 and $2,875,186 as of February 28, 2017 and February 28, 2018, respectively) | [2] | 8,745,624 | 3,042,785 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to TAL Education Group of $90,834,954 and $158,848,576 as of February 28, 2017 and February 28, 2018, respectively) | 229,122,303 | 116,830,290 | |
Income tax payable (including income tax payable of the consolidated VIEs without recourse to TAL Education Group of $15,204,900 and $12,106,200 as of February 28, 2017 and February 28, 2018, respectively) | 13,637,696 | 20,483,037 | |
Total current liabilities | 1,133,387,041 | 667,140,343 | |
Deferred revenue-non-current (including deferred revenue-non-current of the consolidated VIEs without recourse to TAL Education Group of $14,726,473 and $17,980,379 as of February 28, 2017 and February 28, 2018, respectively) | 17,980,379 | 14,726,473 | |
Amounts due to related parties-non-current (including amounts due to related parties-non-current of the consolidated VIEs without recourse to TAL Education Group of $nil and $nil as of February 28, 2017 and February 28, 2018, respectively) | [2] | 270,657 | 2,840,000 |
Deferred tax liabilities-non-current (including deferred tax liabilities-non-current of the consolidated VIEs without recourse to TAL Education Group of $13,063,488 and $19,866,503 as of February 28, 2017 and February 28, 2018, respectively) | 20,039,040 | 13,185,886 | |
Bond payable (including bond payable of the consolidated VIEs without recourse to TAL Education Group of $nil and $nil as of February 28, 2017 and February 28, 2018, respectively) | 11,075,000 | 225,148,918 | |
Long-term payable (including long-term payable of the consolidated VIEs without recourse to TAL Education Group of $nil and $4,660,240 as of February 28, 2017 and February 28, 2018, respectively) | 6,343,565 | 0 | |
Long-term debt (including long-term debt of the consolidated VIEs without recourse to TAL Education Group of $nil and $nil as of February 28, 2017 and February 28, 2018, respectively) | 225,000,000 | 225,000,000 | |
Total liabilities | 1,414,095,682 | 1,148,041,620 | |
Commitments and contingencies (Note 20) | |||
Equity | |||
Additional paid-in capital | 884,716,838 | 141,968,264 | |
Statutory reserve | 38,315,493 | 28,407,421 | |
Retained earnings | 565,201,532 | 417,835,502 | |
Accumulated other comprehensive income | 132,324,966 | 55,869,132 | |
Total TAL Education Group's equity | 1,620,747,787 | 644,244,906 | |
Noncontrolling interest | 19,715,611 | 36,619,425 | |
Total equity | 1,640,463,398 | 680,864,331 | |
Total liabilities and equity | 3,054,559,080 | 1,828,905,951 | |
Common Class A [Member] | |||
Equity | |||
Common shares | 118,402 | 93,131 | |
Total equity | 118,402 | 93,131 | |
Common Class B [Member] | |||
Equity | |||
Common shares | 70,556 | 71,456 | |
Total equity | $ 70,556 | $ 71,456 | |
[1] | The amounts due from related parties represent loans, prepayments to certain investees and advance received by an investee on behalf of the Group. | ||
[2] | The amounts due to related parties are in connection with investment payable and advanced service fees from related parties. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | |
Accounts payable | $ 57,605,414 | $ 22,637,199 | |
Deferred revenue - current | 824,276,004 | 504,147,032 | |
Amounts due to related parties | [1] | 8,745,624 | 3,042,785 |
Accrued expenses and other current liabilities | 229,122,303 | 116,830,290 | |
Income tax payable | 13,637,696 | 20,483,037 | |
Deferred revenue - non-current | 17,980,379 | 14,726,473 | |
Due to related parties, noncurrent | [1] | 270,657 | 2,840,000 |
Deferred tax liabilities - non-current | 20,039,040 | 13,185,886 | |
Bond payable | 11,075,000 | 225,148,918 | |
Long-term Debt | 225,000,000 | 225,000,000 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts payable | 51,809,468 | 20,905,226 | |
Deferred revenue - current | 772,642,292 | 465,944,822 | |
Amounts due to related parties | 2,875,186 | 192,785 | |
Accrued expenses and other current liabilities | 158,848,576 | 90,834,954 | |
Income tax payable | 12,106,200 | 15,204,900 | |
Deferred revenue - non-current | 17,980,379 | 14,726,473 | |
Due to related parties, noncurrent | 0 | 0 | |
Deferred tax liabilities - non-current | 19,866,503 | 13,063,488 | |
Bond payable | 0 | 0 | |
Long-term payable | 4,660,240 | 0 | |
Long-term Debt | $ 0 | $ 0 | |
Common Class A [Member] | |||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Common shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | |
Common shares, shares issued (in shares) | 118,401,821 | 93,130,615 | |
Common shares, shares outstanding (in shares) | 118,401,821 | 93,130,615 | |
Common Class B [Member] | |||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Common shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | |
Common shares, shares issued (in shares) | 70,556,000 | 71,456,000 | |
Common shares, shares outstanding (in shares) | 70,556,000 | 71,456,000 | |
[1] | The amounts due to related parties are in connection with investment payable and advanced service fees from related parties. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | ||
Net revenues | $ 1,715,015,984 | $ 1,043,099,655 | $ 619,948,777 | |
Cost of revenues | (882,316,083) | (522,326,988) | (303,634,829) | |
Gross profit | 832,699,901 | 520,772,667 | 316,313,948 | |
Operating expenses | ||||
Selling and marketing | (242,101,553) | (126,005,365) | (73,567,617) | |
General and administrative | (386,287,317) | (263,286,710) | (161,021,637) | |
Impairment loss on intangible assets | (357,762) | 0 | 0 | |
Total operating expenses | (628,746,632) | (389,292,075) | (234,589,254) | |
Government subsidies | 4,650,059 | 3,113,877 | 3,327,169 | |
Income from operations | 208,603,328 | 134,594,469 | 85,051,863 | |
Interest income | 39,838,177 | 18,133,229 | 17,732,879 | |
Interest expense | (16,640,329) | (13,144,561) | (7,499,323) | |
Other (expense)/income | 17,405,486 | 23,072,718 | (2,522,253) | |
Gain from disposal of components | 0 | 0 | 50,377,126 | |
Gain from fair value change of long-term investments | 0 | 0 | 1,265,852 | |
Impairment loss on long-term investments | (2,212,836) | (8,074,891) | (7,503,944) | |
Income before provision for income tax and loss from equity method investments | 246,993,826 | 154,580,964 | 136,902,200 | |
Provision for income tax | (44,653,725) | (34,065,689) | (33,482,744) | |
Loss from equity method investments | (7,677,594) | (8,025,431) | (663,256) | |
Net income | 194,662,507 | 112,489,844 | 102,756,200 | |
Add: Net loss attributable to noncontrolling interest | 3,777,429 | 4,390,168 | 122,318 | |
Net income attributable to TAL Education Group's shareholders | $ 198,439,936 | $ 116,880,012 | $ 102,878,518 | |
Net income per common share | ||||
Basic | [1] | $ 1.13 | $ 0.72 | $ 0.64 |
Diluted | $ 1.03 | $ 0.66 | $ 0.6 | |
Weighted average shares used in calculating net income per common share | ||||
Basic | 174,979,574 | 162,548,494 | 160,109,169 | |
Diluted | 194,331,305 | 188,508,419 | 183,056,255 | |
[1] | The Company's common shares are divided into Class A and Class B common shares. Holders of Class A and Class B common shares have the same dividend rights. Therefore, the Company does not present earnings per share for each separate class. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Net income | $ 194,662,507 | $ 112,489,844 | $ 102,756,200 |
Other comprehensive (loss) / income, net of tax | |||
Foreign currency translation adjustment | 47,468,680 | (19,864,289) | (15,692,855) |
Unrealized gains on available-for-sale investments: | |||
Net unrealized gains on available-for-sale investments, net of tax effect of $nil, $217,444 and $10,007,001 for the years ended February 29, 2016, February 28, 2017 and February 28, 2018, respectively | 34,556,480 | 75,460,297 | 10,576,836 |
Less: Transfer to statements of operations of realized gains on available-for-sale investments, net of tax effect of $nil for the years ended February 29, 2016, February 28, 2017 and February 28, 2018 | (4,244,974) | 0 | 0 |
Other comprehensive (loss) / income | 77,780,186 | 55,596,008 | (5,116,019) |
Comprehensive income | 272,442,693 | 168,085,852 | 97,640,181 |
Add: Comprehensive loss attributable to noncontrolling interest | 2,453,077 | 5,612,939 | 120,142 |
Comprehensive income attributable to TAL Education Group's shareholders | $ 274,895,770 | $ 173,698,791 | $ 97,760,323 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Net unrealized gains on available-for-sale investments, net | $ 10,007,001 | $ 217,444 | $ 0 |
Transfer to statements of operations of realized gains on available-for-sale, net | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Common Class A [Member] | Common Class B [Member] | Additional paid-in capital [Member] | Statutory reserve [Member] | Retained earnings [Member] | Accumulated other comprehensive (loss) / income [Member] | Non-controlling interest [Member] | Total TAL Education Group shareholders' equity [Member] |
Balance at Feb. 28, 2015 | $ 313,570,816 | $ 88,372 | $ 71,456 | $ 82,479,806 | $ 18,961,627 | $ 207,522,766 | $ 4,168,548 | $ 278,241 | $ 313,292,575 |
Balance (in shares) at Feb. 28, 2015 | 88,371,876 | 71,456,000 | |||||||
Net income | 102,756,200 | $ 0 | $ 0 | 0 | 0 | 102,878,518 | 0 | (122,318) | 102,878,518 |
Provision for statutory reserve | 0 | 0 | 0 | 0 | 4,020,273 | (4,020,273) | 0 | 0 | 0 |
Issuance of common shares in connection with vesting of non-vested shares | (9,436,440) | $ 1,420 | $ 0 | (9,437,860) | 0 | 0 | 0 | 0 | (9,436,440) |
Issuance of common shares in connection with vesting of non-vested shares (in shares) | 1,419,484 | 0 | |||||||
Share-based compensation | 25,847,497 | $ 0 | $ 0 | 25,847,497 | 0 | 0 | 0 | 0 | 25,847,497 |
Exercise of share options | 645,989 | $ 40 | 0 | 645,949 | 0 | 0 | 0 | 0 | 645,989 |
Exercise of share options (in shares) | 40,136 | ||||||||
Foreign currency translation adjustment | (15,692,855) | $ 0 | 0 | 0 | 0 | 0 | (15,695,031) | 2,176 | (15,695,031) |
Net unrealized gains on available-for-sale investments, net | 10,576,836 | 0 | 0 | 0 | 0 | 0 | 10,576,836 | 0 | 10,576,836 |
Conversion of convertible bond to Class A common shares | 0 | ||||||||
Business acquisitions | 8,869,959 | $ 478 | $ 0 | 8,869,481 | 0 | 0 | 0 | 0 | 8,869,959 |
Business acquisitions (in shares) | 478,036 | 0 | |||||||
Noncontrolling Interest, Increase from Business Combination | 3,599,485 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 3,599,485 | 0 |
Balance at Feb. 29, 2016 | 440,737,487 | $ 90,310 | $ 71,456 | 108,404,873 | 22,981,900 | 306,381,011 | (949,647) | 3,757,584 | 436,979,903 |
Balance (in shares) at Feb. 29, 2016 | 90,309,532 | 71,456,000 | |||||||
Net income | 112,489,844 | $ 0 | $ 0 | 0 | 0 | 116,880,012 | 0 | (4,390,168) | 116,880,012 |
Provision for statutory reserve | 0 | 0 | 0 | 0 | 5,425,521 | (5,425,521) | 0 | 0 | 0 |
Issuance of common shares in connection with vesting of non-vested shares | (19,463,487) | $ 1,727 | $ 0 | (19,465,214) | 0 | 0 | 0 | 0 | (19,463,487) |
Issuance of common shares in connection with vesting of non-vested shares (in shares) | 1,726,874 | 0 | |||||||
Share-based compensation | 36,115,200 | $ 0 | $ 0 | 36,115,200 | 0 | 0 | 0 | 0 | 36,115,200 |
Exercise of share options | 1,673,801 | $ 104 | 0 | 1,673,697 | 0 | 0 | 0 | 0 | 1,673,801 |
Exercise of share options (in shares) | 103,888 | ||||||||
Foreign currency translation adjustment | (19,864,289) | $ 0 | 0 | 0 | 0 | 0 | (18,641,518) | (1,222,771) | (18,641,518) |
Net unrealized gains on available-for-sale investments, net | 75,460,297 | 0 | 0 | 0 | 0 | 0 | 75,460,297 | 0 | 75,460,297 |
Conversion of convertible bond to Class A common shares | 4,500,920 | $ 342 | $ 0 | 4,500,578 | 0 | 0 | 0 | 0 | 4,500,920 |
Conversion of convertible bond to Class A common shares (in shares) | 342,462 | 0 | |||||||
Business acquisitions | 65,757,678 | $ 648 | $ 0 | 17,022,573 | 0 | 0 | 0 | 48,734,457 | 17,023,221 |
Business acquisitions (in shares) | 647,859 | 0 | |||||||
Purchase of noncontrolling interest of consolidated subsidiaries | (16,543,120) | $ 0 | $ 0 | (6,283,443) | 0 | 0 | 0 | (10,259,677) | (6,283,443) |
Balance at Feb. 28, 2017 | 680,864,331 | $ 93,131 | $ 71,456 | 141,968,264 | 28,407,421 | 417,835,502 | 55,869,132 | 36,619,425 | 644,244,906 |
Balance (in shares) at Feb. 28, 2017 | 93,130,615 | 71,456,000 | |||||||
Conversion of Class B common shares to Class A common shares | 0 | $ 900 | $ (900) | 0 | 0 | 0 | 0 | 0 | 0 |
Conversion of Class B common shares to Class A common shares (in shares) | 900,000 | (900,000) | |||||||
Net income | 194,662,507 | $ 0 | $ 0 | 0 | 0 | 198,439,936 | 0 | (3,777,429) | 198,439,936 |
Provision for statutory reserve | 0 | 0 | 0 | 0 | 9,908,072 | (9,908,072) | 0 | 0 | 0 |
Issuance of common shares in connection with vesting of non-vested shares | (13,997,413) | $ 2,314 | $ 0 | (13,999,727) | 0 | 0 | 0 | 0 | (13,997,413) |
Issuance of common shares in connection with vesting of non-vested shares (in shares) | 2,314,190 | 0 | |||||||
Share-based compensation | 47,149,738 | $ 0 | $ 0 | 47,149,738 | 0 | 0 | 0 | 0 | 47,149,738 |
Exercise of share options | 2,126,917 | $ 77 | $ 0 | 2,126,840 | 0 | 0 | 0 | 0 | 2,126,917 |
Exercise of share options (in shares) | 76,491 | 0 | |||||||
Foreign currency translation adjustment | 47,468,680 | $ 0 | $ 0 | 0 | 0 | 0 | 46,144,328 | 1,324,352 | 46,144,328 |
Net unrealized gains on available-for-sale investments, net | 34,556,480 | 0 | 0 | 0 | 0 | 0 | 34,556,480 | 0 | 34,556,480 |
Conversion of convertible bond to Class A common shares | 214,421,903 | $ 16,380 | $ 0 | 214,405,523 | 0 | 0 | 0 | 0 | 214,421,903 |
Conversion of convertible bond to Class A common shares (in shares) | 16,380,780 | 0 | |||||||
Business acquisitions | 3,642,544 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 3,642,544 | 0 |
Business acquisitions (in shares) | 0 | 0 | |||||||
Purchase of noncontrolling interest of consolidated subsidiaries | $ (25,041,493) | $ 135 | $ 0 | (6,928,347) | 0 | 0 | 0 | (18,113,281) | (6,928,212) |
Purchase of noncontrolling interest of consolidated subsidiaries (in shares) | 135,264 | 135,264 | 0 | ||||||
Transfer to statements of operations of realized gains on available-for-sale investments, net of tax effect of $nil | $ (4,244,974) | $ 0 | $ 0 | 0 | 0 | 0 | (4,244,974) | 0 | (4,244,974) |
Capital injection from noncontrolling interests shareholders | 20,000 | 0 | 0 | 0 | 0 | 0 | 0 | 20,000 | 0 |
Common shares issued under private placement | 500,000,012 | $ 5,465 | $ 0 | 499,994,547 | 0 | 0 | 0 | 0 | 500,000,012 |
Class A Common shares issued under private placement (in shares) | 5,464,481 | 0 | |||||||
Cash dividend to shareholders | (41,165,834) | $ 0 | $ 0 | 0 | 0 | (41,165,834) | 0 | 0 | (41,165,834) |
Balance at Feb. 28, 2018 | $ 1,640,463,398 | $ 118,402 | $ 70,556 | $ 884,716,838 | $ 38,315,493 | $ 565,201,532 | $ 132,324,966 | $ 19,715,611 | $ 1,620,747,787 |
Balance (in shares) at Feb. 28, 2018 | 118,401,821 | 70,556,000 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Net unrealized gains on available-for-sale investments, net | $ 10,007,001 | $ 217,444 | $ 0 |
Transfer to statements of operations of realized gains on available for sale securities, net | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Cash flows from operating activities | |||
Net income | $ 194,662,507 | $ 112,489,844 | $ 102,756,200 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property and equipment | 50,907,175 | 28,934,491 | 18,156,263 |
Amortization of intangible assets | 8,306,923 | 4,627,306 | 1,026,761 |
(Gain) / loss on disposal of property and equipment | 47,809 | 29,751 | (313) |
Share-based compensation | 47,149,738 | 36,115,200 | 25,847,497 |
Impairment loss on operating assets | 343,605 | 0 | 315,914 |
Impairment loss on long-term investments | 2,212,836 | 8,074,891 | 7,503,944 |
Impairment loss on intangible assets | 357,762 | 0 | 0 |
Loss from equity method investments | 7,677,594 | 8,025,431 | 663,256 |
(Gain) /loss from fair value change of investments | (936,722) | 1,246,800 | (1,265,852) |
Gain from remeasuring fair value of previously held equity interests upon business acquisitions | 0 | (25,225,611) | (971,681) |
Gain from sales of long-term investments | (9,025,511) | 0 | (211,818) |
Gain from transfer of a nonfinancial asset | 0 | 0 | (1,907,669) |
Gain from disposal of components | 0 | 0 | (50,377,126) |
Changes in operating assets and liabilities | |||
Inventory | (2,498,325) | (2,222,598) | 207,006 |
Amounts due from related parties | 368,717 | (2,286,879) | (732,545) |
Prepaid expenses and other current assets | (47,295,368) | (11,891,279) | 1,297,204 |
Income tax receivable | (12,848,309) | (2,244,898) | 3,222,529 |
Deferred income taxes | 5,180,859 | (3,343,957) | (787,579) |
Rental deposits | (14,673,311) | (14,108,268) | (4,851,215) |
Other non-current assets | (194,500) | (543,896) | (1,147,644) |
Accounts payable | 30,978,516 | 5,357,312 | 3,778,512 |
Deferred revenue | 323,050,518 | 193,224,392 | 66,443,577 |
Amounts due to related parties | 3,133,496 | (4,085,111) | 4,255,819 |
Accrued expenses and other current liabilities | 105,231,877 | 43,769,166 | 12,883,180 |
Income tax payable | (6,845,341) | 3,078,841 | 11,050,640 |
Net cash provided by operating activities | 685,292,545 | 379,020,928 | 197,154,860 |
Cash flows from investing activities | |||
Restricted cash | (7,784,265) | (3,427,627) | (586,174) |
Purchase of term deposits | 0 | (10,184,078) | (87,632,201) |
Proceeds from maturity of term deposits | 0 | 27,476,714 | 90,652,423 |
Loan to third parties | (5,530,973) | (99,126,091) | (8,528,718) |
Repayment of loan to third parties | 74,901,763 | 0 | 457,841 |
Prepayment for investments | (43,571,533) | (58,835,367) | 0 |
Loan to related parties | (2,641,354) | (147,091) | (3,815,338) |
Repayment of loan to related parties | 2,759,483 | 2,184,519 | 1,068,295 |
Loan to employees | (5,917,634) | (10,612,126) | (6,470,813) |
Repayment of loan to employees | 5,761,909 | 1,987,912 | 0 |
Purchase of property and equipment | (126,344,339) | (71,111,758) | (35,087,893) |
Purchase of short-term investments | (1,197,155,466) | (313,950,848) | (27,470,431) |
Proceeds from maturity of short-term investments | 657,532,189 | 109,461,880 | 765,611 |
Proceeds from disposal of property and equipment | 927,862 | 559,730 | 390,925 |
Business acquisitions, net of cash acquired | (14,008,541) | (27,200,305) | (21,825,767) |
Purchase of intangible assets | (2,078,516) | 0 | 0 |
Payments for long-term investments | (196,558,758) | (65,340,812) | (118,590,246) |
Proceeds from disposal of long-term investments | 19,352,181 | 0 | 1,320,499 |
Net cash used in investing activities | (840,355,992) | (518,265,348) | (215,351,987) |
Cash flows from financing activities | |||
Net proceeds from long-term debt | 0 | 238,000,000 | 0 |
Repayment of long-term debt | 0 | (25,000,000) | 0 |
Payments for purchasing noncontrolling interests | (18,833,186) | (16,376,965) | 0 |
Cash dividend to shareholders (Note 25) | (41,165,834) | 0 | 0 |
Capital injection from noncontrolling interests shareholders | 20,000 | 0 | 0 |
Proceeds from private placement | 500,000,012 | 0 | 0 |
Proceeds from exercise of share options | 2,126,917 | 1,673,801 | 645,989 |
Cash paid for employee taxes on withheld shares from share-based awards | (13,997,413) | (19,463,487) | (9,436,440) |
Net cash (used in) / provided by financing activities | 428,150,496 | 178,833,349 | (8,790,451) |
Effect of exchange rate changes | (31,784,962) | (3,413,961) | (9,127,816) |
Net (decrease) / increase in cash and cash equivalents | 241,302,087 | 36,174,968 | (36,115,394) |
Cash and cash equivalents at the beginning of year | 470,217,004 | 434,042,036 | 470,157,430 |
Cash and cash equivalents at the end of year | 711,519,091 | 470,217,004 | 434,042,036 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 13,805,218 | 7,329,234 | 5,750,000 |
Income tax paid | 71,021,354 | 36,648,303 | 21,028,165 |
Non-cash investing and financing activities: | |||
Payable for purchase of property and equipment | 9,922,803 | 8,328,008 | 3,478,617 |
Payable for purchase of intangible assets | 3,449,975 | 0 | 0 |
Payable for investments and acquisitions | 14,276,345 | 7,497,584 | 3,022,079 |
Conversion of convertible bond to Class A common shares | 214,421,903 | 4,500,920 | 0 |
Class A Common shares issued for business acquisitions | 0 | 17,023,221 | 8,869,959 |
Class A Common shares issued for purchase of noncontrolling interests | $ 10,887,399 | $ 0 | $ 0 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Feb. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES TAL Education Group (the “Company” or “TAL”) was incorporated in the Cayman Islands on January 10, 2008 to be the holding company for a group of companies engaged in the provision of high quality after-school tutoring programs for primary and secondary school students in the People's Republic of China (the “PRC”). At the time of its incorporation and through the Variable Interest Entities (“VIEs”) arrangements as described below, the ownership interest of the Company was held by Bangxin Zhang, Yundong Cao, Yachao Liu and Yunfeng Bai (collectively, “the founding shareholders”). The Company, its subsidiaries, its consolidated VIEs and VIEs' subsidiaries and schools are collectively referred to as the “Group”. As of February 28, 2018, details of the Company's major subsidiaries, its VIEs and VIEs' major subsidiaries and schools are as follows: Place of Later of date of incorporation (or Percentage incorporation establishment) of legal Name or acquisition /operation ownership Principal activities Major Subsidiaries: TAL Holding Limited (“TAL Hong Kong”) March 11, 2008 Hong Kong 100% Intermediate holding company Beijing Century TAL Education Technology Co., Ltd. (“TAL Beijing”) May 8, 2008 Beijing 100% Software sales, and consulting service Beijing Huanqiu Zhikang Shidai Education Consulting Co., Ltd. (“Huanqiu Zhikang”) September 17, 2009 Beijing 100% Education and management consulting service Yidu Huida Education Technology (Beijing) Co., Ltd. (“Yidu Huida”) November 11, 2009 Beijing 100% Software sales and consulting service Yidu Technology Group (“Yidu Cayman”) February 2, 2012 Cayman Islands 100% Intermediate holding company Yidu Technology Group Limited (“Yidu Hong Kong”) April 13, 2012 Hong Kong 100% Intermediate holding company Beijing Xintang Sichuang Education Technology Co., Ltd. (“Beijing Xintang Sichuang”) August 27, 2012 Beijing 100% Software and Network development, sales, and consulting service Zhixuesi Education Consulting (Beijing) Co., Ltd. (“Zhixuesi Beijing”) October 23, 2012 Beijing 100% Software and Network development, sales, and consulting service Pengxin TAL Industrial investment (Shanghai) Co., Ltd. (“Pengxin TAL”) June 26, 2014 Shanghai 100% Investment management and consulting services Tianjin Dongxuetang Education Information Consulting Co., Ltd. (“Tianjin Dongxuetang”) June 15, 2015 Tianjin 100% Educational information consulting and educational software development Wuxi TAL Education Consulting Co., Ltd. (“Wuxi TAL”) January 12, 2016 Wuxi 100% Educational information consulting and educational software development Firstleap Education (“Firstleap”) January 22, 2016 Cayman Islands 100% Intermediate holding company Place of Later of date of incorporation (or Percentage incorporation establishment) of legal Name or acquisition /operation ownership Principal activities Major Subsidiaries Firstleap Education (HK) Limited (“Firstleap Hong Kong”) January 22, 2016 Hong Kong 100% Intermediate holding company Beijing Lebai Information Consulting Co., Ltd. (“Lebai Information”) January 22, 2016 Beijing 100% Education and management consulting service Beijing Yizhen Xuesi Education Technology Co., Ltd. (“Yizhen Xuesi”) November 3, 2016 Beijing 100% Software and Network development, sales, and consulting service VIEs: Beijing Xueersi Education Technology Co., Ltd. (“Xueersi Education”) December 31, 2005 Beijing N/A* Sales of educational materials and products Beijing Xueersi Network Technology Co., Ltd. (“Xueersi Network”) August 23, 2007 Beijing N/A* Technology development and Educational consulting service Xinxin Xiangrong Education Technology (Beijing) Co., Ltd. (“Xinxin Xiangrong”) June 23, 2015 Beijing N/A* Technology development and Educational consulting service Beijing Lebai Education Consulting Co., Ltd. (“Lebai Education”) January 22, 2016 Beijing N/A* Educational consulting service VIEs' major subsidiaries and schools: Beijing Haidian District Xueersi Training School ("Beijing Haidian School") July 3, 2006 Beijing N/A* After-school tutoring for primary and secondary school students Beijing Dongcheng District Xueersi Training School ("Beijing Dongcheng School") March 21, 2008 Beijing N/A* After-school tutoring for primary and secondary school students Shanghai Changning District Xueersi Training School ("Shanghai Changning School") August 1, 2008 Shanghai N/A* After-school tutoring for primary and secondary school students Shanghai Minhang District Xueersi Training School ("Shanghai Minhang School") August 1, 2008 Shanghai N/A* Language education Beijing Xicheng District Xueersi Training School ("Beijing Xicheng School") April 2, 2009 Beijing N/A* After-school tutoring for primary and secondary school students Shanghai Xueersi Education Training Co., Ltd. ("Shanghai Education") July 2, 2009 Shanghai N/A* Educational information consulting and educational software development Shenzhen Xueersi Education Technology Co., Ltd. ("Shenzhen Education") December 22, 2009 Shenzhen N/A* Teaching software research, and development Beijing Haidian District Lejiale Training School (Beijing Haidian Lejiale") March 22, 2010 Beijing N/A* After-school tutoring for primary and secondary school students Wuhan Jiang'an District Xueersi Education Training School ("Wuhan Jiang'an School") December 16, 2010 Wuhan N/A* After-school tutoring for primary and secondary school students Beijing Chaoyang District Xueersi Training School (Beijing Chaoyang School") January 17, 2011 Beijing N/A* After-school tutoring for primary and secondary school students Beijing Xueersi Nanjing Education Technology Co., Ltd. ("Beijing Xueersi Nanjing Education") January 24, 2011 Nanjing N/A* Educational consulting service Chengdu Xueersi Education Consulting Co., Ltd. ("Chengdu Education") March 18, 2011 Chengdu N/A* Educational information consulting and educational software development Place of Later of date of incorporation (or Percentage incorporation establishment) of legal Name or acquisition /operation ownership Principal activities VIEs' major subsidiaries and schools Zhengzhou Jinshui District Xueersi Education Training School ("Zhenzhou Jinshui School") June 18, 2012 Zhengzhou N/A* After-school tutoring for primary and secondary school students Guangzhou Tianhe District Xueersi Training Center ("Guangzhou Tianhe School") July 12, 2012 Guangzhou N/A* After-school tutoring for primary and secondary school students Suzhou Xueersi Culture Training Center ( December 14, 2012 Suzhou N/A* After-school tutoring for primary and secondary school students Guangzhou Yuexiu District Xueersi Training School ("Guangzhou Yuexiu School") March 20, 2013 Guangzhou N/A* After-school tutoring for primary and secondary school students Nanjing Xueersi Education Training School ("Nanjing School") April 19, 2013 Nanjing N/A* After-school tutoring for primary and secondary school students Shenzhen Xueersi Training Center ("Shenzhen School") November 12, 2013 Shenzhen N/A* After-school tutoring for primary and secondary school students Hangzhou Xueersi Training School ("Hangzhou School") November 14, 2013 Hangzhou N/A* After-school tutoring for primary and secondary school students Jinan Xueersi Education Training School ("Jinan School") September 2, 2014 Jinan N/A* After-school tutoring for primary and secondary school students Xi'an Beilin District Xueersi Education Training Center ( April 2, 2015 Xi'an N/A* After-school tutoring for primary and secondary school students Nanjing Firstleap Children English Training Center ("Nanjing Firstleap") January 22, 2016 Nanjing N/A* Language education Xi'an Yanta District Xueersi Training Center ( September 22, 2016 Xi'an N/A* After-school tutoring for primary and secondary school students Beijing Dongfangrenli Trade Development Co., Ltd. ("Dongfangrenli") July 31, 2016 Beijing N/A* Study abroad intermediary service * These entities are controlled by the Company pursuant to the contractual arrangements disclosed below. The VIE arrangements Due to PRC legal restrictions on foreign ownership and investment in the education business in China, aside from the Group's personalized premium tutoring services in Beijing conducted by the Company’s wholly owned PRC subsidiaries, Huanqiu Zhikang and Zhixuesi Beijing, the Group provides and plans to provide most of its services in the PRC through its VIEs including Xueersi Education, Xueersi Network, Xinxin Xiangrong, Lebai Education and their subsidiaries and schools. To provide the Company the power to control and the ability to receive the expected residual returns of the VIEs and their subsidiaries and schools, the Company's wholly owned subsidiary, TAL Beijing, entered into a series of contractual arrangements with Xueersi Education, Xueersi Network and their respective shareholders on February 12, 2009 and August 12, 2009, including exclusive business service agreements, which were superseded by the Exclusive Business Cooperation Agreement entered into on June 25, 2010. TAL Beijing entered into a series of contractual arrangements with Xinxin Xiangrong on August 4, 2015. Besides, in connection with the Company's acquisition of Firstleap during fiscal year 2016, Lebai Information, a wholly owned PRC subsidiary of Firstleap, entered into a series of contractual arrangements on October 26, 2015 with Lebai Education and its sole shareholder, Xueersi Education, which is a VIE of the Group. The VIEs and their subsidiaries and schools hold various licenses upon which the Group’s business depends. A substantial majority of the Group’s employees who provide the Group’s services are hired by the VIEs and their subsidiaries and schools, and the VIEs and their subsidiaries and schools lease a substantial majority of the properties upon which the Group’s services are delivered. The net revenue from the VIEs and their subsidiaries and schools accounted for 94.1% of the Group’s total net revenue for fiscal year ended February 28, 2018. Through the below contractual arrangements, TAL Beijing and Lebai Information have (1) the power to direct the activities of the VIEs and their subsidiaries and schools that most significantly affect their economic performance and (2) the right to receive substantially all the benefits from the VIEs and their subsidiaries and schools. They are therefore considered the primary beneficiaries of the VIEs and their subsidiaries and schools, and accordingly, the results of operations, assets and liabilities of the VIEs and their subsidiaries and schools are consolidated in the Group's financial statements. Series of exclusive technology support and service agreements: Lebai Information, Lebai Education and its sole shareholder, subsidiaries and schools have entered into an Exclusive Business Service Agreement on October 26, 2015, the terms of which are substantially the same as the agreement of Xinxin Xiangrong summarized above. The term of such agreement is 10 years and will be renewed for another 10 years at Lebai Information’s discretion. The services under each of these agreements include, but are not limited to, employee training, technology development, transfer and consulting services, public relation services, market survey, research and consulting services, market development and planning services, human resource and internal information management, network development, upgrade and ordinary maintenance services, and software and trademark licensing and other additional services as the parties may mutually agree from time to time. TAL Beijing, Lebai Information or their designated affiliates, owns the exclusive intellectual property rights developed in the performance of these agreements. As consideration for these services, TAL Beijing, Lebai Information or their designated affiliates are entitled to charge the VIEs and VIEs' subsidiaries and schools service fees annually or regularly, and adjust the service fee rates from time to time at their discretion. Call option agreement: TAL Beijing, Xinxin Xiangrong and the shareholders of Xinxin Xiangrong have entered into a call option agreement on August 4, 2015. Lebai Information, Lebai Education and the sole shareholder of Lebai Education have entered into a call option agreement on October 26, 2015, the terms of which are substantially the same as the call option agreement summarized above. Under each of these agreements, TAL Beijing or Lebai Information has sole discretion to decide when to exercise the option, and whether to exercise the option in part or in full. Unless earlier terminated by mutual agreement of all parties, these agreements shall remain effective until TAL Beijing and Lebai Information exercise their purchase right to purchase all the VIEs' equity interests according to these agreements. Equity pledge agreement: TAL Beijing, Xinxin Xiangrong and the shareholders of Xinxin Xiangrong have entered into an equity pledge agreement on August 4, 2015. Lebai Information, Lebai Education and the sole shareholder of Lebai Education have entered into an equity pledge agreement on October 26, 2015, the terms of which are substantially the same as the agreements summarized above. These agreements are effective on the date of execution and terminate when all the secured rights under the relevant agreements, as the case may be, are completely fulfilled or terminated in accordance thereof. Letter of Undertaking: Power of attorney: The articles of associations of each of the VIEs state that the major rights of the shareholders in shareholders' meeting include the power to approve the operating strategy and investment plan, elect the members of board of directors and approve their compensation and review and approve annual budget and earning distribution plan. Therefore, through the irrevocable power of attorney arrangement TAL Beijing or Lebai Information has the ability to exercise effective control over each of the VIEs respectively through shareholder votes and, through such votes, to also control the composition of the board of directors. As a result of these contractual rights, the Company has the power to direct the activities of each of the VIEs that most significantly impact their economic performance. Spousal consent letter: Deed of undertaking: ⋅ as long as Mr. Bangxin Zhang owns shares in the Company, whether legally or beneficially, and directly or indirectly (including shares held through Mr. Bangxin Zhang’s personal holding company Bright Unison Limited or any other company, trust, nominee or agent, if any), representing more than 50% of the aggregate voting power of the then total issued and outstanding shares of the Company; ⋅ Mr. Bangxin Zhang will not, directly or indirectly, (i) requisition or call any meeting of shareholders for the purpose of removing or replacing any of existing directors or appointing any new director, or (ii) propose any resolution at any of shareholders meetings to remove or replace any of existing directors or appoint any new director; and should any meeting of shareholders be called by the board of directors or requisitioned or called by shareholders for the purpose of removing or replacing any of the directors or appointing any new director, or if any resolution is proposed at any of shareholder meetings to remove or replace any of the directors or appoint any new director, the maximum number of votes which Mr. Bangxin Zhang will be permitted to exercise shall be equal to the total aggregate number of votes of the then total issued and outstanding shares of the Company held by all members of the Company, other than shares which are owned, whether legally or beneficially, and directly or indirectly by Mr. Bangxin Zhang, less one vote; and ⋅ Mr. Bangxin Zhang will not cast any votes he has as a director or shareholder (if applicable) on any resolutions or matters concerning enforcing, amending or otherwise relating to the Deed being considered or voted upon by board of directors or shareholders, as the case may be. In the opinion of Maples and Calder (Hong Kong) LLP, the Company's Cayman Islands legal counsel, the deed of undertaking constitutes the legal, valid and binding obligations of Mr. Bangxin Zhang, which cannot be unilaterally revoked by Mr. Bangxin Zhang, and is enforceable in accordance with its terms under existing Cayman Islands laws. Risks in relation to the VIE structure The Company believes that TAL Beijing and Lebai Information's contractual arrangements with the VIEs and their respective subsidiaries, schools and shareholders are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company's ability to enforce these contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the Group would be subject to fines or potential actions by the relevant PRC regulatory authorities with broad discretions, which could include: ⋅ revoke the Group's business and operating licenses; ⋅ require the Group to discontinue or restrict its operations; ⋅ limit the Group's business expansion in China by way of entering into contractual arrangements; ⋅ restrict the Group's right to collect revenues or impose fines; ⋅ block the Group's websites; ⋅ require the Group to restructure the operations in such a way as to compel the Group to establish a new enterprise, re-apply for the necessary licenses or relocate its businesses, staff and assets; ⋅ impose additional conditions or requirements with which the Group may not be able to comply; or ⋅ take other regulatory or enforcement actions against the Group that could be harmful to its business. The imposition of any of these penalties could result in a material adverse effect on the Company's ability to conduct the Group's business. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of the VIEs, and the VIEs' subsidiaries and schools, or the right to receive their economic benefits, the Company would no longer be able to consolidate the VIEs, and the VIEs' subsidiaries and schools. The Company does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation or dissolution of the Company, TAL Beijing, Lebai Information, or the VIEs and their respective subsidiaries and schools. The four legal owners of Xueersi Education and Xueersi Network are Mr. Bangxin Zhang, Mr. Yachao Liu, Mr. Yunfeng Bai, and Mr. Yundong Cao, and the three legal owners of Xinxin Xiangrong are Mr. Bangxin Zhang, Mr. Yachao Liu and Mr. Yunfeng Bai and the sole legal owner of Lebai Education is Xueersi Education. Mr. Bangxin Zhang, Mr. Yachao Liu and Mr. Yunfeng Bai are shareholders and directors or officers of TAL Education Group. Xueersi Education is a VIE of the Group. The interests of Mr. Bangxin Zhang, Mr. Yachao Liu, Mr. Yunfeng Bai and Mr. Yundong Cao as beneficial owners of Xueersi Education, Xueersi Network and Xinxin Xiangrong may differ from the interests of the Group as a whole, since these parties’ respective equity interests in Xueersi Education, Xueersi Network and Xinxin Xiangrong may conflict with their respective equity interests in the Group. When conflicts of interest arise, it is possible that any or all of these individuals may not act in the best interests of the Group, and such conflicts may not be resolved in the Group’s favor. In addition, these individuals may breach, or cause Xueersi Education, Xueersi Network and Xinxin Xiangrong, their subsidiaries and schools to breach, or refuse to renew, the existing contractual arrangements the Group has with them and Xueersi Education, Xueersi Network and Xinxin Xiangrong, their subsidiaries and schools. Other than the aforementioned deed of undertaking the Group entered with Mr. Bangxin Zhang, the Group currently does not have any arrangements to address potential conflicts of interest between these individuals and the Company. To a large extent, the Group relies on the legal owners of Xueersi Education, Xueersi Network and Xinxin Xiangrong to abide by the laws of the Cayman Islands and China, which provide that directors and officers owe a fiduciary duty to the Company that requires them to act in good faith and in the best interests of the Company and not to use their positions for personal gains. If the Group cannot resolve any conflict of interest or dispute between it and these individuals, the Group would have to rely on legal proceedings, which could result in disruption of its business and subject it to substantial uncertainty as to the outcome of any such legal proceedings. The VIE arrangements The following consolidated financial statement balances and amounts of the Company's VIEs and their subsidiaries and schools, were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions amongst the Company, its subsidiaries, its VIEs and VIEs’ subsidiaries and schools in the Group. As of February 28, As of February 28, 2017 2018 Cash and cash equivalents $ 129,006,713 $ 194,021,200 Short-term investments 28,981,286 17,694,375 Prepaid expenses and other current assets 154,904,786 116,053,338 Total current assets 312,892,785 327,768,913 Property and equipment, net 120,949,643 206,568,630 Other non-current assets 392,352,040 681,906,652 Total assets 826,194,468 1,216,244,195 Deferred revenue-current 465,944,822 772,642,292 Accrued expenses and other current liabilities 127,137,865 225,639,430 Total current liabilities 593,082,687 998,281,722 Total non-current liabilities 27,789,961 42,507,122 Total liabilities $ 620,872,648 $ 1,040,788,844 For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Net revenues $ 575,928,039 $ 978,290,610 $ 1,614,511,918 Net income $ 175,088,200 $ 279,491,964 $ 378,974,597 For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Net cash provided by operating activities $ 204,092,962 $ 219,199,114 $ 325,798,178 Net cash used in investing activities $ (111,318,060 ) $ (298,626,732 ) $ (218,127,784 ) Net cash used in financing activities $ (3,735,386 ) $ (24,331,967 ) $ (26,965,278 ) As of February 29, 2016, February 28, 2017 and February 28, 2018, the balance of the amount payable by the VIEs and their subsidiaries and schools to TAL Beijing, Lebai Information or their designated affiliates related to the service fees was $17.9 million, $49.0 million and $60.3 million, respectively, and was eliminated upon consolidation. There are no consolidated VIEs' assets that are collateral for the VIEs' obligations and can only be used to settle the VIEs' obligation. The following consolidated financial statement balances and amounts of the Company and its subsidiaries, excluding the Company's VIEs and VIEs' subsidiaries and schools, were included in the accompanying consolidated financial statements after the elimination of inter-company transactions and balances among the Company, its subsidiaries, its VIEs and VIEs’ subsidiaries and schools in the Group: As of February 28, As of February 28, 2017 2018 Cash and cash equivalents $ 341,210,291 $ 517,497,891 Short-term investments 200,475,111 769,696,379 Prepaid expenses and other current assets 16,542,818 47,042,962 Total current assets 558,228,220 1,334,237,232 Property and equipment, net 33,357,075 40,697,218 Other non-current assets 411,126,188 463,380,435 Total assets 1,002,711,483 1,838,314,885 Deferred revenue-current 38,202,210 51,633,712 Accrued expenses and other current liabilities 35,855,446 83,471,607 Total current liabilities 74,057,656 135,105,319 Total non-current liabilities 453,111,316 238,201,519 Total liabilities $ 527,168,972 $ 373,306,838 For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Net revenues $ 44,020,738 $ 64,809,045 $ 100,504,066 Net loss $ (72,332,000 ) $ (167,002,120 ) $ (184,312,090 ) For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Net cash (used in) / provided by operating activities $ (6,938,102 ) $ 159,821,814 $ 359,494,367 Net cash used in investing activities $ (104,033,927 ) $ (219,638,616 ) $ (622,228,208 ) Net cash (used in) / provided by financing activities $ (5,055,065) $ 203,165,316 $ 455,115,774 Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserve and their paid in capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 23 for disclosure of restricted net assets. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 28, 2018 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 2. SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, which are accounted for under the voting interest model, and its VIEs, VIEs’ subsidiaries and schools consolidated under the variable interest entity consolidation model. All inter-company transactions and balances have been eliminated upon consolidation. The Company through TAL Beijing and Lebai Information, wholly owned foreign enterprises, has executed a series of contractual agreements with its VIEs, the VIEs’ subsidiaries and schools and the VIEs’ nominee shareholders. For a description of these contractual arrangements, see “Note 1 Organization and Principal ActivitiesThe VIE Arrangements”. These contractual agreements do not provide TAL Beijing and Lebai Information with an equity interest in legal form in the VIEs. As the Company holds no legal form of equity ownership in the VIEs, the Company applied the variable interest entity consolidation model as set forth in Accounting Standards Codification 810, Consolidation (“ASC 810”) instead of the voting interest model of consolidation. By design, the contractual agreements provide TAL Beijing and Lebai Information with a right to receive benefits equal to substantially all of the net income of these entities, and thus under ASC 810, these agreements are considered variable interests. Subsequent to identifying any variable interests, any party holding such variable interests must determine if the entity in which the interest is held is a variable interest entity and subsequently which reporting entity is the primary beneficiary of, and should therefore consolidate the variable interest entity. Among other reasons, an entity is considered a variable interest entity if the holders of the equity investment at risk in the entity, as a group, lack any one of the following characteristics of a controlling financial interest: · The power, through voting rights or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance · The obligation to absorb the entity’s expected losses, or · The right to receive the entity’s expected residual returns A reporting entity is considered to be the primary beneficiary, and thus the accounting parent, of a variable interest entity if it possesses both: (a) the power to direct the activities that most significantly impact the economic performance of the variable interest entity and (b) the obligation to absorb losses and/or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. As a result of the contractual arrangements, the nominee shareholders of the VIEs lack the characteristics of a controlling financial interest in the VIEs and therefore the VIEs are considered to be variable interest entities under ASC 810. The contractual arrangements, by design, provide TAL Beijing and Lebai Information the power to direct the activities that most significantly impact the economic performance of the VIEs and the right to receive substantially all the benefits of the VIEs, which causes TAL Beijing and Lebai Information to be the primary beneficiaries of the VIEs, and accordingly TAL Beijing and Lebai Information consolidate their operations. Determining whether TAL Beijing and Lebai Information are the primary beneficiaries requires a careful evaluation of the facts and circumstances, including whether the contractual agreements are substantive under the applicable legal and financial reporting frameworks, i.e. PRC law and U.S. GAAP. The Company continually reviews its corporate governance arrangements to ensure that the contractual agreements are indeed substantive. The Company has determined that the contractual agreements are in fact valid and legally enforceable. Such arrangements were entered into in order to comply with the underlying legal and/or regulatory restrictions that govern the ownership of a direct equity interest in the VIEs. In the opinion of the Company's PRC counsel, Tian Yuan Law Firm, the contracts are legally enforceable under PRC law. See “Note 1 Organization and Principal ActivitiesThe VIE Arrangements”. The Company has considered the existence of related party relationships, e.g. ownership of an equity interest in the Company and the VIEs, and the effect that might have on the enforceability of the contractual agreements and in turn whether they are substantive. The Company believes there are no barriers to exercise its rights under the contracts and therefore they are substantive and appropriately considered in the consolidation analysis in accordance with ASC 810. In assessing the shareholdings of certain individual parties in the Company and in the VIEs, specifically Mr. Bangxin Zhang, the Company acknowledges that from November 23, 2011, Mr. Bangxin Zhang, a majority nominee shareholder in the VIEs, also holds a majority voting interest in the Company, which resulted from conversion of Class B common shares with ten votes per share to Class A common shares with one vote per share by other shareholders. Therefore, the Company has reassessed the consolidation of its VIEs. Although the contractual arrangements between TAL Beijing and its VIEs were designed to provide TAL Beijing with the characteristics of a controlling financial interest regardless of the respective shareholdings of Mr. Bangxin Zhang, during the period between November 23, 2011 and June 24, 2013, Mr. Bangxin Zhang’s majority voting interest in the Company, when combined with his status as a majority nominee shareholder in the VIEs, could have constrained the ability of the Company to exercise its rights under the contractual agreements. This is due to the fact that Mr. Bangxin Zhang’s majority voting interest in the Company provided him with the legal ability to control the composition of a majority of the board of directors and therefore may have provided him with the legal ability to affect whether or not the Company could exercise the rights contained in the contractual agreements. Mr. Bangxin Zhang did not exercise this power at any time during the period in which he held a majority voting interest in the Company and during such period. In fact, there was no change in the composition of the board of directors or in the day-to-day operations of the Company during the period. On June 24, 2013 and July 29, 2013, the Company and Mr. Bangxin Zhang executed a deed of undertaking dated June 24, 2013 and a side letter dated July 29, 2013, respectively (collectively, the “Deed”). Pursuant to the terms of the Deed, as long as Mr. Bangxin Zhang owns a majority voting interest, whether legally or beneficially, and directly or indirectly, in Company, (1) Mr. Bangxin Zhang cannot requisition or call a meeting of shareholders or propose a shareholders resolution to appoint or remove a director, (2) if shareholders are asked to appoint or remove a director, the maximum number of votes which Mr. Bangxin Zhang will be permitted to exercise in connection with such shareholder approval is equal to the total aggregate number of votes of the then total issued and outstanding shares of the Company held by all members of the Company, other than shares which are owned, whether legally or beneficially, and directly or indirectly by Mr. Bangxin Zhang, less one vote and (3) if shareholders or board of directors are asked to consider or approve any matter related to the Deed, Mr. Bangxin Zhang cannot exercise his voting power. Upon execution of the Deed, despite his ownership of and as long as he holds a majority voting interest, whether legally or beneficially, and directly or indirectly, in the Company, Mr. Bangxin Zhang will (1) not be permitted to requisition or call a meeting of shareholders or propose a shareholders resolution to appoint or remove a director, (2) in relation to any shareholder approvals to appoint or remove a director, only be permitted to exercise up to the number of votes equal to the total aggregate number of votes of the then total issued and outstanding shares of the Company held by all members of the Company, other than shares which are owned, whether legally or beneficially, and directly or indirectly by Mr. Bangxin Zhang, less one vote and (3) in relation to shareholders’ or board of directors’ consideration or approval of any matter related to the Deed, Mr. Bangxin Zhang cannot exercise his voting power. The terms of the Deed prevents Mr. Bangxin Zhang from controlling the rights of the Company as it relates to the contractual agreements, and accordingly, the Company retains a controlling financial interest in the VIEs and would consolidate them as the VIEs’ primary beneficiary. Please see Note 1 for the presentation of abbreviated financial information of the VIEs and the Group without the VIEs, after elimination of intercompany balances and transactions. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenue, costs, and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Significant accounting estimates reflected in the Group's consolidated financial statements include purchase price allocation relating to business acquisitions, valuation allowance for deferred tax assets, the useful lives of property and equipment and intangible assets, impairment of intangible assets, long-lived assets, goodwill and long term investments, fair value assessment of long-term investments and consolidation of variable interest entities. Cash and cash equivalents consist of cash on hand, demand deposits and highly liquid investments, which are unrestricted as to withdrawal or use, or have remaining maturities of three months or less when purchased. The Group's restricted cash is related to deposits required by PRC government authorities for establishing new schools and subsidiaries, cash deposit relating to potential acquisition and interest deposits in connection with the term and revolving facilities agreement. Short-term investments include wealth management products, which are mainly deposits with variable interest rates placed with financial institutions and are restricted as to withdrawal and use. The Group classifies the wealth management products as held-to-maturity securities. The original maturities of the short-term investments are greater than three months, but less than twelve months. For investment products indexed to an underlying stock or stock market, the Group elects the fair value method to record them at fair value in accordance with ASC 825 Financial Instruments. Changes in the fair value are reflected in the consolidated statements of operations. The Group's trading securities are comprised of investment portfolio with underlying securities publicly traded in active markets. The investments are reported at fair value and changes in the fair value are reflected in the consolidated statements of operations. Building 35 40 Computer, network equipment and software 3 Vehicles 4 5 Office equipment and furniture 3 5 Leasehold improvement Shorter of the lease term or estimated useful lives Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any noncontrolling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Where the consideration in an acquisition includes contingent consideration 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. In a business combination achieved in stages, the Group remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the remeasurement gain or loss, if any, is recognized in the consolidated statements of operations. Business combinations occurred during the year ended February 28, 2018 are disclosed in Note 3. Acquired intangible assets other than goodwill consist of trade name and domain names, copyrights, student and user base, technology, Trade name and domain names 3.0 10.4 Copyrights 3.0 5.5 Student and user base 1.3 7.0 Technology 5.0 6.0 Partnership agreements 2.6 4.5 Non-compete agreements 2.0 3.0 Licenses 1.7 5.0 Customer relationship 3.0 5.0 Concession 3.0 5.0 School cooperation agreements 5.0 6.4 Teaching materials 10.0 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 excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheets as goodwill. Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired. ASC 350-20 permits the Group to first assess 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. Absent from any impairment indicators, the Group performs its annual impairment test on the last day of each fiscal year. The Group does not choose to perform the assessment of qualitative factors for goodwill impairment and performs its annual impairment test using a two-step approach. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchase price over the amounts assigned to assets and liabilities representing the implied fair value of goodwill. The Group recognized no impairment loss on goodwill for any of the periods presented. The Group’s long-term investments consist of cost method investments, equity method investments, available-for-sale investments, fair value option investments and held-to-maturity investments. Cost method investments For investee companies over which the Group neither has significant influence nor control through investment in common shares or in-substance common shares and which do not have readily determinable fair value, the Group accounts for the investments in cost method, under which the Group carries the investments 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 other-than-temporary impairment 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. Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in common shares or in-substance common shares, 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 50 Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into earnings and accordingly adjusts the carrying amount of the investment. If financial statements of an investee cannot be made available within a reasonable period of time, the Group records its share of the net income or loss of an investee on a one quarter lag basis in accordance with ASC 323-10-35-6. The Group reviews its equity method investments for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investments. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. Available-for-sale investments For investments in investees' preferred shares which are determined to be debt securities, the Group accounts for them as available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income as a component of shareholders’ equity. Realized gains and losses and provision for decline in value judged to be other than temporary, if any, are recognized in the consolidated statements of operations. Fair value option investments The Group elected the fair value option to account for certain investments whereby the change in fair value is recognized in the consolidated statements of operations. Held-to-maturity investments Long-term investments include wealth management products, which are mainly deposits with variable interest rates placed with financial institutions and are restricted as to withdrawal and use. The Group classifies the wealth management products as “held-to-maturity” securities. The original maturities of the investments are two years. 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 pricing 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 assets or liabilities 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. Fair value of financial instruments is disclosed in Note 14. The Group recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Revenue is reported net of business tax, value added tax (“VAT”) and related surcharge. The primary sources of the Group's revenues are as follows: (a) Educational programs and services The educational programs and services primarily consist of after-school group tutoring (including Xueersi small class, Mobby courses and Firstleap) and after-school one-on-one tutoring. Tuition revenue is generally collected in advance and is initially recorded as deferred revenue. Tuition revenue is recognized proportionately as the tutoring sessions are delivered. The revenue for educational programs and services for the years ended February 29, 2016, February 28, 2017 and February 28, 2018 are $ 585,046,737 950,417,433 1,507,898,108 Generally, for Xueersi small class courses, the Group offers refunds for any remaining classes to students who decide to withdraw from a course. The refund is equal to and limited to the amount related to the undelivered classes. For most Mobby courses, the Group offers refunds equal to and limited to the amount related to the undelivered classes to students who withdraw from a course, provided the course is less than two-third completed at the time of withdrawal. After two-third of the course is completed, no refund will be provided. For Firstleap, the Group offers refunds for any remaining classes to students who decide to withdraw from a course, provided the course is less than half completed at the time of withdrawal. After half of the course is completed, no refund will be provided. For personalized premium services, a student can withdraw at any time and receive a refund equal to and limited to the amount related to the undelivered classes. The refund is recorded as a reduction of the related deferred revenue and has no impact on recognized revenue. Historically, the Group has not experienced material refunds on recognized revenue, and as such, no accrual for estimated refunds is deemed necessary. The Group distributes coupons to attract both existing and prospective students to enroll in its courses. The coupon has fixed dollar amounts and can only be used against future courses. The coupon is accounted for as a reduction of revenue when the relevant revenue is recognized in the consolidated statements of operations. (b) Online education services through www.xueersi.com The online education services provided by the Group through www.xueersi.com to its students include live class and pre-recorded course content and the revenue for the years ended February 29, 2016, February 28, 2017 and February 28, 2018 are $ 24,710,561 48,878,453 120,719,041 Students enroll for online courses through www.xueersi.com by the use of prepaid study cards or payment to the Group's online accounts. The proceeds collected are initially recorded as deferred revenue. For live class courses, revenues are recognized proportionately as the tutoring sessions are delivered. For pre-recorded course content, revenues are recognized on a straight line basis over the subscription period from the date in which the students activate the courses to the date in which the subscribed courses end. Refunds are provided to the students who decide to withdraw from the subscribed courses within the course offer period and a proportional refund is based on the percentage of untaken courses to the total courses offered. Historically, the Group has not experienced material refunds on the recognized revenue, and as such, no accrual for estimated refunds is deemed necessary. (c) Others Other revenues are primarily derived from 1) advertising services provided on the Group's online platforms; 2) educational materials sales; and 3) consulting service and test preparation courses related to overseas study. Revenue is recognized after a contract is signed, the price is fixed or determinable, services or products are delivered and collection is reasonably assured. Other revenues for the years ended February 29, 2016, February 28, 2017 and February 28, 2018 are $ 10,191,479 43,803,769 86,398,835 Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital. Forfeitures are recognized as they occur. Pursuant to the PRC tax laws, in case of any product sales, generally the VAT rate is 3 17 The Group's online education services and inter-company technical services are subject to VAT at the rate of 6 6 6 6 Xueersi Education enjoys VAT exemption for book sales from February 2014 to December 2017. Since January 2018, it is subject to a VAT rate of 17 Since May 2016, in accordance with Cai Shui [2016] No. 68, non-academic education service providers who are general VAT payer could elect a simple VAT collection method and apply for a 3 Leases where substantially all the rewards and risks of the ownership of the assets remain with the leasing companies are accounted for as operating leases. Payments made for the operating leases are charged to the consolidated statements of operations on a straight-line basis over the shorter of the lease term or estimated useful life, and have been included in the consolidated statements of operations. The Group expenses advertising costs as incurred. Total advertising costs incurred were $ 2,637,778 5,331,088 22,474,379 The Group reports government subsidies as other income when received from local government authority with no limitation on the use of the subsidies. The Group receives government subsidies related to government sponsored projects and records such government subsidies as a liability when it is received and records it as other income when the performance obligation is met or fulfilled. Government subsidies received totaled $ 3,301,463 3,107,229 4,559,849 3,327,169 3,113,877 4,650,059 The functional and reporting currency of the Company is the United States dollar. The functional currency of the Company's PRC subsidiaries, VIEs and VIEs' subsidiaries and schools in the PRC is Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations. For the years ended February 29, 2016, February 28, 2017 and February 28, 2018, the Group recorded exchange loss of $ 5,186,540 1,288,132 3,323,723 For translating the results of the PRC subsidiaries into the functional currency of the Company, assets and liabilities are translated from each subsidiary's functional currency to the reporting currency at the exchange rate on the balance sheet date. Equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and comprehensive income. 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. Cash and cash equivalents, and restricted cash of the Group included aggregate amounts of $ 316,351,713 466,721,083 Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authorities. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. Comprehensive income includes net income, unrealized gain or loss on available-for-sale investments, and foreign currency translation adjustments. Comprehensive income is reported in the consolidated statements of comprehensive income. Financial instruments that potentially expose the Group to significant concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and restricted cash. The Group places its cash and cash equivalents, short-term investments and restricted cash in financial institutions with high credit ratings. The Group's financial instruments consist primarily of cash and cash equivalents, restricted cash, short-term investments, long-term investments accounted for available-for-sale investments, fair value option investments and held-to-maturity investments, amounts due from related parties and amounts due to related parties, accounts payable, income tax payable, long-term debt and bond payable. The Group carries its available-for-sale investments and fair value option investments at fair value. The carrying amount of long-term debt approximates fair value as its interest rates are at the same level of current market yield for comparable debts. The carrying amounts of other financial instruments, except for bond payable and long-term held-to-maturity investments, approximate their fair values because of their generally short maturities. The bond payable and long-term held-to-maturity investments are recorded at amortized cost. Basic net income per share is computed by dividing net income attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted net income per 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 |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended |
Feb. 28, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 3. BUSINESS ACQUISITION Business acquisitions in fiscal year 2018: During the year ended February 28, 2018, the Group made several business acquisitions. Each acquisition has been recorded using the acquisition method of accounting, and accordingly, the acquired assets and liabilities assumed were recorded at their fair value at the date of acquisition. The results of these acquired entities' operations have been included in the consolidated financial statements since the date of acquisitions. Goodwill primarily represents the expected synergies from combining the acquired businesses with the business of the Group. The total consideration of business acquisitions made during the year ended February 28, 2018, included cash totaling $ 16,164,599 15,865,789 5,781,566 12,621,874 3,642,544 The results of operations for all these acquired entities have been included in the Group’s consolidated financial statements from their respective acquisition dates. The acquired goodwill is not deductible for tax purposes. For the years ended February 28, 2017 2018 (Unaudited) (Unaudited) Pro forma net revenues $ 1,043,717,568 $ 1,715,774,242 Pro forma net income attributable to TAL Education Group $ 115,054,921 $ 198,105,115 Pro forma net income per share - basic $ 0.71 $ 1.13 Pro forma net income per share - diluted $ 0.65 $ 1.03 Business acquisitions in fiscal year 2017: Acquisition of Shunshun Bida In December 2015, the Group acquired 30 66 19,119,796 13,558,991 US$ Cash consideration $ 19,119,796 Common shares 13,558,991 Fair value of the previously held 30% equity interest: Carrying amount 10,515,391 Gain on remeasurement of fair value as of acquisition date 25,225,611 Total $ 68,419,789 The purchase price was allocated as of July 31, 2016, the date of acquisition, as follows: Amortization US$ period Cash and cash equivalents $ 11,121,264 Other current assets 12,782,176 Rental deposits 1,306,135 Property and equipment, net 423,538 Intangible assets Trade name 6,780,070 10.4 years School cooperation agreements 3,344,834 6.4 years Goodwill 93,004,827 Other current liabilities (4,642,267) Deferred revenue (24,750,882) Deferred tax liabilities (2,052,906) Noncontrolling interest (28,897,000) Total purchase consideration $ 68,419,789 The purchase price allocation, as disclosed, was determined by the Group with the assistance of an independent valuation appraiser. The fair value of the purchased intangible assets was measured by using the “income approach-excess earnings” and “relief from royalty” valuation methods. In November 2016, the Group acquired additional 14 16,310,319 80 Acquisition of Guangzhou after-school one-on-one tutoring business component (“Guangzhou Tutoring”) In November 2016, the Group surrendered a portion of Series C convertible redeemable preferred shares of Changing Education Inc. (“Changing”) in exchange for Guangzhou Tutoring valued at $ 50 Due to business focus realignment, Changing concluded that Guangzhou Tutoring no longer fits well with its overall business strategy and decided to exit its ownership and operation of Guangzhou Tutoring. Changing approached the Group and negotiated the terms which both parties agreed on the valuation and the exchange. Please refer to Note 14(a)(5) and Note 15. Amortization US$ period Cash and cash equivalents $ 4,381,051 Other current assets 5,044,431 Intangible assets Student base 4,605,000 5.1 years Goodwill 46,546,189 Deferred revenue (9,425,421) Deferred tax liabilities (1,151,250) Total purchase consideration $ 50,000,000 The purchase price allocation, as disclosed, was determined by the Group with the assistance of an independent valuation appraiser. The fair value of the purchased intangible assets was measured by using the “income approach-excess earnings” valuation method. Acquisition of Shanghai Yaya In August 2016, the Group acquired 51 24,910,031 9,559,154 15,350,877 Amortization US$ period Cash and cash equivalents $ 616,947 Account receivables 4,869,685 Other current assets 845,178 Rental deposits 89,375 Property and equipment, net 90,426 Intangible assets Trade name 5,727,995 10.0 years Customer relationship 3,703,704 4.3 years User base 659,769 1.3 years Goodwill 30,888,052 Other current liabilities (1,614,688) Deferred tax liabilities (2,522,867) Noncontrolling interest (18,443,545) Total purchase consideration $ 24,910,031 The purchase price allocation, as disclosed, was determined by the Group with the assistance of an independent valuation appraiser. The fair value of the purchased intangible assets was measured by using the “income approach-excess earnings”, “relief from royalty” and “cost method” valuation methods. Other acquisitions During the year ended February 28, 2017, the Group made several other business acquisitions. The total consideration of these business acquisitions included 1) cash of $ 12,340,722 3,464,230 3,346,694 14,141,026 1,393,912 The results of operations for all these acquired entities have been included in the Group’s consolidated financial statements from their respective acquisition dates. The acquired goodwill is not deductible for tax purposes. For the years ended February 29/28, 2016 2017 (Unaudited) (Unaudited) Pro forma net revenues $ 645,751,588 $ 1,062,742,905 Pro forma net income attributable to TAL Education Group $ 95,833,307 $ 112,849,625 Pro forma net income per share - basic $ 0.60 $ 0.69 Pro forma net income per share - diluted $ 0.56 $ 0.64 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Feb. 28, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Short Term Investments [Text Block] | SHORT-TERM INVESTMENTS As of As of February 28, February 28, 2017 2018 Held-to-maturity investments (1) $ 171,703,197 $ 718,541,370 Variable-rate financial instruments (2) 57,753,200 18,223,768 Trading securities (3) - 50,625,616 $ 229,456,397 $ 787,390,754 (1) The Group purchased wealth management products from financial institutions in China and classified them 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 three months to twelve months. The Group estimated that their fair value approximate their amortized costs. (2) The Group purchased several investment products indexed to certain stock or stock markets with maturities less than one year. The Group accounted for them at fair value and recorded a loss of $ 1,246,800 50,570 (3) The Group accounted for its investment in trading securities at fair value and recorded a gain of $ 625,616 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Feb. 28, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets [Text Block] | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS As of As of February 28, February 28, 2017 2018 Prepaid rental $ 16,550,792 $ 29,813,900 Prepayments to suppliers (1) 36,763,795 47,633,175 Interest receivable 4,347,655 8,655,362 Staff advances (2) 2,680,725 7,003,759 Loan to employees (3) 4,095,974 5,459,861 Other deposits 1,923,303 2,577,362 Prepaid VAT 390,253 2,625,726 Study cards and book receivables 1,146,482 4,290,979 Receivable from rendered online advertising services 6,828,823 9,326,072 Receivable from an available-for-sale investment investee (4) 81,099,081 - Loans to third-parties (5) - 5,530,973 Receivables of withoholding tax from employees for option exercise proceeds - 3,627,779 Others 4,395,940 6,690,925 $ 160,222,823 $ 133,235,873 (1) Prepayments to suppliers are primarily for student recruitment services, advertising fees and server hosting fees. Student recruitment service fees are prepaid by the Group's study abroad business to recruitment agencies. Such prepayments are generally short-term and refundable if performance condition is not met. (2) Staff advances are provided to employees primarily for traveling, office expenses and other expenditures which are subsequently expensed as incurred. (3) The Group offers housing benefit plan to employees who have been employed by the Group for three years or more and met certain performance criteria. Under this benefit plan, the eligible employees receive interest-free loans for purposes of home purchases. Each loan has a term of four years and must be repaid by equal annual installments. (4) One of the Group's domestic investees was in the process of terminating its VIE structure as of February 28, 2017, as part of its domestic IPO plan. To facilitate the restructuring, the Group has provided prepayment to the investee in fiscal year 2017 and fully collected the amount in fiscal year 2018. (5) Loans to third-parties are generally mature in less than one year. Upon the maturity of the loans, they will be settled through repayment or conversion to equity interests of the borrowers at the Group's discretion. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Feb. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | PROPERTY AND EQUIPMENT, NET As of As of February 28, February 28, 2017 2018 Building $ 58,823,576 $ 63,127,019 Leasehold improvement 96,232,807 187,585,900 Computer, network equipment and software 55,431,263 91,550,062 Vehicles 627,190 706,695 Office equipment and furniture 12,721,964 26,602,951 Total cost of property and equipment 223,836,800 369,572,627 Less: accumulated depreciation (69,530,082) (122,306,779) $ 154,306,718 $ 247,265,848 For the years ended February 29, 2016, February 28, 2017 and February 28, 2018, depreciation expenses were $ 18,156,263 28,934,491 50,907,175 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Feb. 28, 2018 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets Disclosure [Text Block] | 7. INTANGIBLE ASSETS, NET As of As of February 28, February 28, 2017 2018 Trade name and domain names $ 23,873,013 $ 25,049,779 Copyrights 1,648,532 1,839,680 Student and user base 10,361,994 10,361,994 Technology 3,179,688 6,247,451 Partnership agreement 349,783 1,437,974 Non-compete agreements 306,268 1,036,688 Licenses 297,861 5,347,836 Customer relationship 4,130,543 4,136,337 Concession 404,523 404,523 School cooperation agreements 3,419,696 3,419,696 Teaching materials 516,544 516,544 Total cost of intangible assets 48,488,445 59,798,502 Less: accumulated amortization (9,780,439) (18,087,362) Less: impairment loss - (357,762) Add: foreign exchange difference (741,198) 2,151,402 $ 37,966,808 $ 43,504,780 Domain names, copyrights and licenses were acquired from third parties and the rest of intangible assets were recorded as a result of business acquisitions. The Group recorded amortization expense of $ 1,026,761 4,627,306 8,306,923 Estimated amortization expense of the existing intangible assets for the next five years is $ 9,330,694 9,140,874 8,315,702 5,440,963 3,873,251 The impairment loss on acquired intangible assets was $nil, $nil and $ 357,762 |
GOODWILL
GOODWILL | 12 Months Ended |
Feb. 28, 2018 | |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |
Goodwill Disclosure [Text Block] | GOODWILL As of As of February 28, February 28, 2017 2018 Beginning balance $ 88,546,783 $ 268,686,951 Addition (Note 3) 184,580,094 12,621,874 Impairment (1,524,266) (1,524,266) Exchange difference (4,439,926) 11,597,570 Goodwill, net $ 267,162,685 $ 291,382,129 The Group did not incur impairment loss on goodwill for the years ended February 29, 2016, February 28, 2017 and February 28, 2018. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Feb. 28, 2018 | |
Schedule of Investments [Abstract] | |
Investment Holdings, Schedule of Investments [Text Block] | 9. LONG-TERM INVESTMENTS As of As of February 28, February 28, 2017 2018 Cost method investments Minerva Project, Inc. (1) $ 18,000,003 $ 18,000,003 Knewton, Inc. (2) 11,582,167 11,582,167 Other cost method investments (3) 9,163,228 19,078,782 Equity method investments Phoenix E-Learning Corporation (4) 24,157,270 24,660,475 Beijing Haoweilai Gongying Investment Center, LLP (“Gongying Fund”) (5) 3,758,732 4,374,725 Shenzhen Youban Technology Company Limited (“Shenzhen Youban”) (6) 5,783,156 21,418,825 Shanghai Xiaoxin Information Technology Company Limited (“Shanghai Xiaoxin”) (7) 3,400,968 10,397,823 GSV Acceleration Fund I, L.P. (“GSV Fund”) (8) 4,001,335 8,329,070 Hangzhou Feizhu Technology Company Limited (“Hangzhou Feizhu”) (9) - 11,163,616 Other equity method investments (10) 22,051,227 62,816,770 Fair value option investments (11) 10,158,514 7,786,000 Available-for-sale investments (11) 235,675,844 322,777,769 Held-to-maturity investments (12) - 75,219,750 Total $ 347,732,444 $ 597,605,775 (1) In October 2014, the Group acquired minority equity interest in Minerva Project, Inc., a Delaware corporation that is committed to providing an exceptional and accessible liberal arts and sciences education for future leaders and innovators across all disciplines. The total consideration was $ 18,000,003 (2) In January 2016, the Group acquired minority equity interest in Knewton, Inc., a company in adaptive learning incorporated in Delaware with total cash consideration of $ 5,000,001 6,582,166 (3) The Group holds equity interests in several third-party private companies through investments in their common shares or in-substance common shares where these equity interests are generally less than 10 1,269,611 (4) In December 2015, the Group invested $ 30,000,000 32 (5) In May 2016, the Group and two third-parties which are related parties (“third party group”), established Gongying Fund, a limited liability partnership focusing on investing in private education companies. The Group and the third party group owns 20 80 259.0 37.7 51.6 7.5 207.4 30.2 All investment decisions made by Gongying Fund have to be approved by both parties. The Group has the ability to exercise significant influence but does not have control over Gongying Fund due to the other partner’s substantive participating rights, and thereby used the equity method to account for the investment. In fiscal year 2017, Gongying Fund invested RMB 70 10.2 (6) In September 2015, the Group acquired 20 28 (7) In November 2016, the Group acquired 25 14.7 (8) For the years ended February 28, 2017 and 2018, the Group paid $ 3.4 7.7 (9) In November 2017, the Group acquired 32.8 (10) The Group holds 4.8 39.7 The Group recorded $ 5,622,221 757,591 409,229 (11) Please refer to Note 14(a) fair value option investments and available-for-sale investments for details. (12) The Group purchased wealth management products from financial institutions in China and classified them 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 was two years and recorded at amortized cost. The Group estimated that their fair value approximate their carrying amount. |
LONG-TERM PREPAYMENTS AND OTHER
LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS | 12 Months Ended |
Feb. 28, 2018 | |
Long Term Prepayments Disclosures [Abstract] | |
Long Term Prepayments And Other Noncurrent Assets Disclosure [Text Block] | 10. LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS As of As of February 28, February 28, 2017 2018 Long-term prepayments (1) $ 59,293,208 $ 96,641,852 Loan to employees (2) 10,999,053 11,022,250 Loan receivable (3) 18,027,010 20,875,534 Other non-current assets (4) 7,788,646 9,650,217 $ 96,107,917 $ 138,189,853 (1) As of February 28, 2017 and February 28, 2018, the Group made prepayments to acquire equity interests in several third-party companies. (2) Please see Note 5(3) for details of loan to employees. (3) In October 2016, the Group provided a long-term loan to a third party. The principal amount is $ 17,591,858 120,794,490 7.98 435,152 1,786,645 (4) As of February 28, 2017 and February 28, 2018, other non-current assets were primarily made up of prepayment for property and equipment and the unamortized debt issuance costs to be amortized beyond one year associated with the facilities under the long-term debt as disclosed in Note 13. The Group recognized $ 317,523 260,244 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Feb. 28, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of As of February 28, February 28, 2017 2018 Accrued employee payroll and welfare benefits $ 79,867,924 $ 135,366,042 Amounts due to employees for stock sales proceeds - 24,140,789 Other taxes payable 13,769,327 22,868,616 Accrued employee annual bonus 5,956,144 9,969,633 Accrued operating expenses 1,564,149 8,458,150 Payable for investments and acquisitions 1,807,584 5,111,313 Professional service fee payable 230,098 3,280,294 Payable for acquisitions of intangible assets - 1,766,650 Interest payable 2,999,801 1,451,264 Examination enrollment fees collected on behalf of contests organizers 755,054 828,385 Others 9,880,209 15,881,167 Total $ 116,830,290 $ 229,122,303 |
BOND PAYABLE
BOND PAYABLE | 12 Months Ended |
Feb. 28, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | 12. BOND PAYABLE On May 21, 2014, the Company issued $ 230,000,000 2.5 The net proceeds from the Bond, after deducting the issuance costs, were $ 224,722,942 96,054,582 7,539,778 2,464,804 The debt issuance costs of $ 5,277,058 Effective on August 16, 2017, the Company adjusted the ratio of its American Depositary Shares (“ADSs”) to Class A common shares from one ADS representing two Class A common shares to three ADSs representing one Class A common shares. The information disclosed below have been given effect to the foregoing ADS to share ratio change (“Ratio Change”). In addition, as disclosed in Note 25, the Company declared and paid a cash dividend, which triggered the conversion adjustment provisions of the Bond. In connection with the issuance of the Bond, the Company entered into capped call transactions (each a “Capped Call Transaction”) with three initial purchasers or their affiliates by purchasing 52,712,642 22,885,000 5.87 22,885,000 The main terms of the Bond are summarized as follows: Conversion The Bond are convertible into the Company’s ADSs, at the option of the holders, in integral multiples of $ 1,000 229.1856 1,000 4.36 4,501,000 214,424,000 1,027,386 49,142,340 Redemption The Company does not have the right to redeem the Bond prior to maturity except for certain circumstances involving changes in the tax laws for the relevant tax jurisdiction. Holders of the Bond have the right to require the Company to repurchase in cash all or part of their Bond on May 15, 2017 or upon the occurrence of certain fundamental changes at a repurchase price equal to 100 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Feb. 28, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 13. LONG-TERM DEBT On June 30, 2016, the Company entered into a three-year $ 400,000,000 225,000,000 175,000,000 250 basis points over LIBOR. 0.75 The debt issuance cost of $ 12,000,000 The Facilities Agreement contains financial covenants on the Group’s tangible net worth, interest cover and leverage, and also it has acceleration clauses about the occurrence of an event of default. The Company is required to maintain restricted cash equivalent to a three-month period of interest expense for the duration of the Facilities Agreement. As of February 28, 2017 and February 28, 2018, the Company had drawn down $ 225,000,000 30,000,000 30,000,000 50,000,000 3.46 4.10 4.14 The interest rate swap agreements meet the definition of a derivative in accordance with ASC815. The fair value and the change in fair value of the derivatives related to the interest rate swap agreements were insignificant for the years ended February 28, 2017 and February 28, 2018. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Feb. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 14. FAIR VALUE (a) Assets and liabilities measured at fair value on a recurring basis The Group measured certain long-term investments at fair value on a recurring basis as of February 28, 2017 and February 28, 2018. Fair value option investments The Group accounted for its investments in two third-party companies using the fair value option which is how management assesses the return on these investments. Changes in fair value are reflected in the consolidated statement of operations. As of As of February 28, February 28, 2017 2018 Fair value option investments Long-term investment in a third-party online education company (1) $ 3,062,191 $ - Long-term investment in a third-party technology company (2) 7,096,323 7,786,000 $ 10,158,514 $ 7,786,000 (1) In February 2013, the Group acquired 16.85% equity interest in a third-party online education company with a total cash consideration of $3,080,000. The equity interest was acquired through the Group's purchase of its convertible redeemable preferred shares. The Group disposed all its equity interest in this online education company to a third party and recognized a gain of $5,846,737 in fiscal year 2018. (2) In August 2014, the Group acquired 4.76% equity interest in a third-party technology company with a total cash consideration of $5,000,000. The equity interest was acquired through the Group's purchase of its convertible redeemable preferred shares. The fair value change of the investment was an increase of $nil and $274,711 in fiscal years 2017 and 2018, respectively. At the end of each reporting period, the Group measures the fair value of these investments using income approach in discounted cash flow method. The discounted cash flow analysis requires the use of significant unobservable inputs (level 3 inputs), including projected revenue, operating expenses, capital expenditures and a discount rate calculated based on the weighted average cost of capital. For the years ended February 29, 2016, February 28, 2017 and February 28, 2018, the changes in the carrying amounts of long-term investments measured using the fair value option on a recurring basis were as follows: Balance as of February 28, 2015 $ 9,282,000 Changes in fair value 1,265,852 Foreign exchange difference (24,852 ) Balance as of February 29, 2016 $ 10,523,000 Foreign exchange difference (364,486 ) Balance as of February 28, 2017 $ 10,158,514 Changes in fair value 6,250,878 Disposal (9,038,358 ) Foreign exchange difference 414,966 Balance as of February 28, 2018 $ 7,786,000 Available-for-sale investments The Group accounted for the following investments as debt securities and classified as available-for-sale investments, which were measured subsequently at fair value in the balance sheet and unrealized holding gains and losses were reported in other comprehensive income. As of As of February 28, February 28, 2017 2018 Available-for-sale investments in: BabyTree Inc. (3) $ 98,216,000 $ 121,624,368 Guokr Corporation Limited (4) 15,745,000 15,745,000 Changing (5) 65,623,000 93,571,000 Shanghai Zhengda Ximalaya Technology Company Limited (“Ximalaya”) (6) 9,466,249 15,994,153 Know Box Limited (7) 4,660,307 20,627,000 Other third-party companies (8) 41,965,288 55,216,248 $ 235,675,844 $ 322,777,769 (3) In January 2014, the Group acquired minority equity interests in BabyTree Inc. by purchasing its Series E convertible redeemable preferred shares with a total cash consideration of $23,475,000. BabyTree Inc. is an online parenting community and an online retailer of maternity and kids products. The fair value change of the investment was an increase of $72,799,000 and $26,192,398 in fiscal years 2017 and 2018, respectively. In fiscal year 2018, the Group sold part of the equity interest in Babytree Inc. to Gongying Fund and recognized $3,043,589 disposal gain. (4) In October 2014, the Group acquired minority equity interests in Guokr Corporation Limited by purchasing its Series C convertible redeemable preferred shares with a total cash consideration of $15,000,000. Guokr Corporation Limited was incorporated in the Cayman Islands and is an open and diverse interest community that provides interesting science and technology content. The fair value change of the investment was both $nil in fiscal years 2017 and 2018, respectively. (5) In April and August 2015, the Group acquired 30% equity interest in aggregate in Changing, which operates a customer-to-customer mobile tutoring platform in China. The equity interest was acquired through the Group's purchase of its Series B+ and Series C convertible redeemable preferred shares. In fiscal year 2017, the Group entered into agreements with Changing and its founders to a) Purchase a portion of ordinary shares from one of Changing’s founders with cash consideration of $4,825,000. Immediately after, Changing replaced these ordinary shares held by the Group with Series B+ convertible redeemable preferred shares at no additional costs. b) Surrender a portion of Series C convertible redeemable preferred shares to Changing in exchange for the Guangzhou Tutoring, which was previously disposed in fiscal year 2016. Please refer to Note 3 and Note 15 for details. c) Purchase a portion of Series C convertible redeemable preferred shares of Changing with total cash consideration of $17,861,744, of which $12,171,744 was paid in fiscal year 2017. The above three transactions were discrete and separately accounted for. In fiscal year 2018, the Group acquired minority equity interests in Changing by purchasing its Series D convertible redeemable preferred shares with a total cash consideration of $15,000,000. An increase of change in fair value of the investment in Changing amounted to $1,400,256 and $12,948,000 in fiscal years 2017 and 2018, respectively. (6) In August 2016, the Group acquired minority equity interests in Ximalaya, an online Frequency Modulation (“FM”) radio platform, by purchasing its Series C+ convertible redeemable preferred shares with a total cash consideration of $9,466,249. The fair value change of the investment was an increase of $nil and $5,722,345 in fiscal years 2017 and 2018, respectively. (7) In July 2015, the Group acquired minority equity interests in Know Box Limited, an online platform for the interaction between teachers and students, by purchasing its Series A convertible redeemable preferred shares with a total cash consideration of $4,660,307. During the fiscal year 2018, the Group acquired additional minority equity interests in Know Box Limited by purchasing its Series B and C convertible redeemable preferred shares with a total cash consideration of $10,197,365. The fair value change of the investment was an increase of $nil and $5,372,745 in fiscal years 2017 and 2018, respectively. (8) The Group acquired minority equity interest in several other third-party private companies, the majority of which are engaged in online platform or online education services. The Group holds minority equity interests of these companies through purchasing their convertible redeemable preferred shares. The Group accounted for these investments as available-for-sale investments. There was an increase of $743,478 and $1,321,739 change in fair value of those investments in fiscal years 2017 and 2018, respectively. The Group recorded $1,564,200, $6,047,689 and $1,803,607 impairment loss during the years ended February 29, 2016, February 28, 2017 and February 28, 2018, respectively. The long-term investments accounted for as available-for-sale investments on a recurring basis are as follows: US$ Balance as of February 29, 2016 $ 188,790,669 Purchase 40,412,690 Disposal (5) (50,000,000 ) Transfer out upon gaining control of Shunshun Bida (10,515,391 ) Transfer out due to change of accounting method (1,165,077 ) Changes in fair value 74,942,734 Impairment loss (6,047,689 ) Foreign exchange difference (742,092 ) Balance as of February 28, 2017 $ 235,675,844 Purchase 36,044,236 Disposal (7,476,733 ) Changes in fair value 51,557,227 Impairment loss (1,803,607 ) Foreign exchange difference 8,780,802 Balance as of February 28, 2018 $ 322,777,769 As of February 28, 2017 and February 28, 2018, information about inputs for the fair value measurements of the Group's assets that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair Value Measurement at Reporting Date Using Quoted Prices in Significant Other Significant February 28, Active Market for Observable Unobservable Description 2017 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Short-term investments Variable-rate financial instruments $ 57,753,200 - $ 57,753,200 - Long-term investments Fair value option investments $ 10,158,514 - - $ 10,158,514 Available-for-sale investments $ 235,675,844 - - $ 235,675,844 Total $ 303,587,558 - $ 57,753,200 $ 245,834,358 Fair Value Measurement at Reporting Date Using Quoted Prices in Significant Other Significant February 28, Active Market for Observable Unobservable Description 2018 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Short-term investments Variable-rate financial instruments $ 18,223,768 - $ 18,223,768 - Trading securities $ 50,625,616 $ 50,625,616 - - Long-term investments Fair value option investments $ 7,786,000 - - $ 7,786,000 Available-for-sale investments $ 322,777,769 - - $ 322,777,769 Total $ 399,413,153 $ 50,625,616 $ 18,223,768 $ 330,563,769 (b) Assets and liabilities measured at fair value on a nonrecurring basis The Group's goodwill and intangible assets are primarily acquired through business acquisitions. Purchase price allocation are measured at fair value on a nonrecurring basis as of the acquisition dates. The Group measures its goodwill and intangible assets at fair value on a nonrecurring basis annually or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value. Acquired intangible assets are measured 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 impairment loss related to goodwill and acquired intangible assets arising from acquisitions of $nil, $nil and $357,762 for the years ended February 29, 2016, February 28, 2017 and February 28, 2018, respectively. The Group measures long-term investments (excluding the available-for-sale investments and fair value option investments) at fair value on a nonrecurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. Please see Note 9(10) and Note 9(12) for details. 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. The fair value of the bond payable was disclosed in Note 12. |
GAIN FROM DISPOSAL OF COMPONENT
GAIN FROM DISPOSAL OF COMPONENTS | 12 Months Ended |
Feb. 28, 2018 | |
Gain From Disposal of Components [Abstract] | |
Gain From Disposal of Components Disclosure [Text Block] | 15. GAIN FROM DISPOSAL OF COMPONENTS In fiscal year 2016, the Group acquired 30 1) In April 2015, the Group purchased Series B+ convertible redeemable preferred shares with total cash consideration of $ 6,315,790 2) In August 2015, the Group purchased Series C convertible redeemable preferred shares at $ 1.6922 30,000,000 50,000,000 In addition, during the year ended February 29, 2016, a gain of $ 377,126 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Feb. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 16. INCOME TAXES Cayman Islands The Company and Firstleap are tax-exempted companies incorporated in the Cayman Islands. Hong Kong TAL Hong Kong, Yidu Hong Kong and Firstleap Hong Kong were established in Hong Kong and are subject to Hong Kong Profits Tax on its activities conducted in Hong Kong. It is subject to Hong Kong profit tax at 16.5 PRC Effective from January 1, 2008, a new Enterprise Income Tax Law, or (“the New EIT Law”), combined the previous income tax laws for foreign invested and domestic invested enterprises in the PRC by the adoption of a unified tax rate of 25 Certain qualified high and new technology enterprises that meet the definition of “high and new technology enterprise strongly supported by the state” (“HNTE”) could benefit from a preferential tax rate of 15 15 25 TAL Beijing was qualified as a HNTE and was accordingly entitled to a preferential tax rate of 15 15 Yidu Huida was qualified as a HNTE and was accordingly entitled to a preferential tax rate of 15 10 10 Beijing Xintang Sichuang was qualified as “Newly Established Software Enterprise” in calendar year 2013 and therefore it was entitled to a two-year exemption from EIT and a further reduction to 12.5 15 12.5 Beijing Yinghe Youshi Technology Co., Ltd. ("Yinghe Youshi") was also qualified as HNTE and was accordingly entitled to a preferential tax rate of 15 Yizhen Xuesi was qualified as “Newly Established Software Enterprise” in calendar year 2017 and therefore it was entitled to a two-year exemption from EIT and a further reduction to 12.5 For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Current - PRC income tax expenses $ 34,474,418 $ 37,720,637 $ 48,958,623 Deferred - PRC income tax expenses (991,674) (3,654,948) (4,304,898) Total $ 33,482,744 $ 34,065,689 $ 44,653,725 As of As of February 28, February 28, 2017 2018 Non-current deferred tax assets: Prepaid rental 1,694,073 2,386,560 Property and equipment 591,917 657,593 Impairment loss on long-term investments 2,098,309 553,229 Others 33,129 66,057 Tax losses carry-forward 27,830,452 38,248,065 Less: valuation allowance (16,059,579) (24,550,491) Non-current deferred tax assets, net $ 16,188,301 $ 17,361,013 Non-current deferred tax liabilities: Accrued ADR income 34,500 - Intangible assets 5,959,102 5,342,969 Property and equipment 852,719 274,524 Long-term investments 6,339,565 14,421,547 Non-current deferred tax liabilities $ 13,185,886 $ 20,039,040 As of February 28, 2018, tax loss carry-forward amounted to $ 159,878,732 24,550,491 Under U.S. GAAP, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting amounts over tax basis amounts, including those differences attributable to a more than 50% interest in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Company has not recorded any such deferred tax liability attributable to the undistributed earnings of its financial interest in VIEs because it believes such excess earnings can be distributed in a manner that would not be subject to income tax. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group has concluded that there are no significant uncertain tax positions requiring recognition in financial statements for the years ended February 29, 2016, February 28, 2017 and February 28, 2018. 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 12 months. The Group has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future years. 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 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 is subject to examination by the PRC tax authorities based on the above. 25 For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Income before provision for income tax $ 136,902,200 $ 154,580,964 $ 246,993,826 PRC statutory income tax rate 25% 25% 25% Income tax at statutory income tax rate 34,225,550 38,645,241 61,748,457 Effect of non-deductible and super deduction expenses 1,331,053 1,853,002 (2,244,191) Effect of income tax exemptions and preferential tax rates (12,830,838) (26,256,983) (37,390,108) Effect of income tax rate difference in other jurisdictions 10,159,093 16,575,113 14,949,433 Change in valuation allowance 597,886 3,249,316 7,590,134 Provision for income tax $ 33,482,744 $ 34,065,689 $ 44,653,725 For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Increase in income tax expenses $ 12,830,838 $ 26,256,983 $ 37,390,108 Net income per common share-basic $ 0.56 $ 0.56 $ 0.90 Net income per common share-diluted $ 0.53 $ 0.52 $ 0.82 New EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese Income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the New EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc, occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed a resident enterprise, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income tax at a rate of 25 If the Company were to be non-resident for PRC tax purpose, 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 subsidiaries, the withholding tax would be 10 The Chinese tax authorities clarified that distributions made out of earnings prior to but distributed after January 1, 2008 will not be subject to withholding tax. The aggregate undistributed earnings of the Company's subsidiaries, VIEs and VIEs' subsidiaries and schools located in the PRC that are available for distribution are $ 556,236,815 925,484,106 |
COMMON SHARES
COMMON SHARES | 12 Months Ended |
Feb. 28, 2018 | |
Stockholders' Equity Note [Abstract] | |
Common Shares [Text Block] | 17. COMMON SHARES The Company has two Holders of Class A common shares and Class B common shares have the same rights except for voting and conversion rights. In respect of matters requiring shareholders' vote, each Class A common share is entitled to one ten one The computation of ADSs below have been given effect to the Ratio Change as disclosed in Note 12. During the years ended February 29, 2016, February 28, 2017 and February 28, 2018, nil, nil and 900,000 900,000 During the years ended February 29, 2016, February 28, 2017 and February 28, 2018, 1,419,484 1,726,874 2,314,190 4,258,452 5,180,622 6,942,570 1,419,484 1,726,874 2,314,190 During the years ended February 29, 2016, February 28, 2017 and February 28, 2018, 40,136 103,888 76,491 120,408 311,664 229,473 40,136 103,888 76,491 During the years ended February 29, 2016, February 28, 2017 and February 28, 2018, 478,036 647,859 During the years ended February 28, 2017 and February 28, 2018, 342,462 16,380,780 1,027,386 49,142,340 During the year ended February 28, 2018, the Company issued 135,264 10,448,063 2,858,310 15,254,971 14,593,430 On January 5, 2018, the Company entered into a subscription agreement with certain investors (the “Purchasers”), pursuant to which the Company issued 5,464,481 500,000,012 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Feb. 28, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 18. NET INCOME PER SHARE For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Numerator: Net income attributable to TAL Education Group's shareholders $ 102,878,518 $ 116,880,012 $ 198,439,936 Eliminate the dilutive effect of interest expense of the bond payable 7,499,323 7,539,778 2,464,804 Numerator for diluted net income per share $ 110,377,841 $ 124,419,790 $ 200,904,740 Denominator: Weighted average shares outstanding Basic 160,109,169 162,548,494 174,979,574 Effect of dilutive securities: Dilutive effect of non-vested shares and options (i) 5,447,276 8,467,663 11,084,069 Dilutive effect of the bond payable 17,499,810 17,492,262 8,267,662 Denominator for diluted net income per share 183,056,255 188,508,419 194,331,305 Net income per common share attributable to TAL Education Group's shareholders-basic (ii) $ 0.64 $ 0.72 $ 1.13 Net income per common share attributable to TAL Education Group's shareholders-diluted $ 0.60 $ 0.66 $ 1.03 (i) For the years ended February 29, 2016, February 28, 2017 and February 28, 2018, 1,421,576 1,814,724 381,426 (ii) The Company's common shares are divided into Class A and Class B common shares. Holders of Class A and Class B common shares have the same dividend rights. Therefore, the Company does not present earnings per share for each separate class. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Feb. 28, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 19. RELATED PARTY TRANSACTIONS Balances: As of As of February 28, February 28, 2017 2018 Amounts due from related parties-current (i) $ 3,424,285 $ 3,228,839 Amounts due to related parties-current (ii) $ 3,042,785 $ 8,745,624 Amounts due to related parties-non-current (ii) $ 2,840,000 $ 270,657 Transactions: For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Services fees $ 426,084 $ 596,987 $ 879,796 Other revenue $ - $ 60,657 $ 1,016,040 Purchase of equipment $ - $ - $ 947,281 Disposal gain (iii) $ - $ - $ 3,043,589 (i) The amounts due from related parties represent loans, prepayments to certain investees and advance received by an investee on behalf of the Group. (ii) The amounts due to related parties are in connection with investment payable and advanced service fees received from related parties. (iii) As disclosed in Note 14(a)(3), the Group sold part of equity interest in Babytree Inc. to Gongying Fund and recognized $ 3,043,589 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Feb. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Contingencies and Guarantees [Text Block] | COMMITMENTS AND CONTINGENCIES Lease commitment The Group leases certain office premises under non-cancellable leases, the term of which are fifteen years or less and are renewable upon negotiation. Rental expenses under operating leases for the years ended February 29, 2016, February 28, 2017 and February 28, 2018 were $ 82,257,681 148,640,828 224,842,144 Fiscal year ending February 2019 $ 226,097,223 February 2020 227,316,124 February 2021 201,111,732 February 2022 169,360,927 February 2023 122,846,419 Thereafter 190,792,679 Total $ 1,137,525,104 Investment commitment The Group was obligated to pay $ 131,559,038 Capital commitment As of February 28, 2018, the Group had outstanding capital commitments totaling $ 69,804,423 Contingencies As of February 28, 2018, the Group is in the process of preparing filings and applying for permits of certain learning centers. The Group cannot reasonably estimate the contingent liability of without the filling of the permit, no liabilities is recorded as of February 28, 2018. From time to time, the Group is subject to legal proceedings and claims incidental to the conduct of its business. The Group accrues the liability when the loss is probable and reasonably estimable. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Feb. 28, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | SEGMENT INFORMATION The Group is mainly engaged in after-school tutoring in the PRC. The Group's chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer. In comparative periods, the Group determined each location represented an operating segment and all the locations met the aggregation criteria set forth in the U.S. GAAP with respect to segment reporting as they have similar economic characteristics and provide the same tutoring services. Due to reorganization of business units and change in internal reporting in fiscal year 2017, the CODM currently regularly reviews the consolidated financial results of the Group. Therefore, the Group has one single operating and reportable segment. |
MAINLAND CHINA CONTRIBUTION PLA
MAINLAND CHINA CONTRIBUTION PLAN | 12 Months Ended |
Feb. 28, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 22. MAINLAND CHINA CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The PRC labor regulations require the Group to accrue for these benefits based on certain percentages of the employees' salaries. Total provisions for such employee benefits were $ 37,556,437 63,922,568 108,462,826 |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 12 Months Ended |
Feb. 28, 2018 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS [Text Block] | 23. STATUTORY RESERVES AND RESTRICTED NET ASSETS As stipulated by the relevant PRC laws and regulations, PRC entities are required to make appropriations from net income as determined in accordance with the PRC GAAP to non-distributable statutory reserve, which includes a statutory surplus reserve and a statutory welfare reserve (the “reserve fund”), and a development fund. The PRC laws and regulations require that annual appropriations of 10 50 In private school sector, the PRC laws and regulations require that certain amount should be set aside as development fund prior to payments of dividends. In the case of private school that requires reasonable returns, this amount should be no less than 25 25 The statutory reserve may be applied against prior year losses, if any, and may be used for general business expansion and production or increase in registered capital of the entities. For the years ended February 28, 2017 and February 28, 2018, the Group made apportions of $ 877,924 476,296 4,547,597 9,431,776 As a result of these PRC laws and regulations and the requirement that distribution by PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid-in capital and the statutory reserve of the Company's PRC subsidiaries, the VIEs and VIEs' subsidiaries and schools. As of February 28, 2017 and February 28, 2018, paid-in capital balance of such entities was $ 53,638,081 80,888,341 28,407,421 38,315,493 82,045,502 119,203,834 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Feb. 28, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | SHARE-BASED COMPENSATION In June 2010, the Company adopted the 2010 Share Incentive Plan. The plans permit the grant of options to purchase the Class A common shares, share appreciation rights, restricted shares, restricted share units, dividend equivalent rights and other instruments as deemed appropriate by the administrator under the plans. In August 2013, the Company amended and restated the 2010 Share Incentive Plan. Pursuant to the amended and restated 2010 Share Incentive Plan, the maximum aggregate number of Class A common shares that may be issued pursuant to all awards under the share incentive plan is equal to five percent ( 5 1 The total compensation expense is recognized on a straight-line basis over the respective vesting periods. The Group recorded the related compensation expense of $25,847,497, $36,115,200 and $47,149,738 for the years ended February 29, 2016, February 28, 2017 and February 28, 2018, respectively. For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Cost of revenues $ 42,679 $ 111,001 $ 365,065 Selling and marketing expenses 2,479,864 3,367,840 5,037,013 General and administrative expenses 23,324,954 32,636,359 41,747,660 Total $ 25,847,497 $ 36,115,200 $ 47,149,738 Non-vested shares During the year ended February 29, 2016, the Company granted 4,877,946 3 10 During the year ended February 28, 2017 1,564,442 3 10 During the year ended February 28, 2018 1,111,836 1 10 Number of Weighted non-vested average grant date shares fair value Outstanding as of February 28, 2015 12,586,650 10.09 Granted 4,877,946 18.67 Forfeited 1,355,964 9.08 Vested 1,869,530 10.78 Outstanding as of February 29, 2016 14,239,102 13.04 Granted 1,564,442 36.42 Forfeited 425,980 19.53 Vested 2,276,558 13.04 Outstanding as of February 28, 2017 13,101,006 15.62 Granted 1,111,836 74.63 Forfeited 187,719 27.95 Vested 2,375,107 14.81 Outstanding as of February 28, 2018 11,650,016 21.21 The Company recorded compensation expense of $ 24,929,207 34,003,045 44,329,988 As of February 28, 2018, the unrecognized compensation expense related to the non-vested share awards amounted to $ 229,433,295 6.3 20,153,533 29,686,316 35,175,335 Share options Share options granted to employees and directors expire ranging from 10 12 During the year ended February 29, 2016, the Company granted 1,212,480 16.10 18.32 4 10 During the year ended February 28, 2017 448,400 22.17 34.13 3 10 During the year ended February 28, 2018 89,160 40.05 102.00 4 For the year ended For the year ended For the year ended Risk-free interest rate (1) 1.64%-1.97% 1.34%-2.36% 1.99%-2.55% Expected life (years) (2) 6.25-8.75 6.56-7.92 6.17-6.25 Expected dividend yield (3) 0% 0% 0% Volatility (4) 34.0%-34.7% 33.1%-33.8% 32.8%-33.8% Fair value of options at grant date per share $7.66 to $10.65 $13.04 to $19.13 $28.69 to $38.71 (1) Risk-free interest rate Risk-free interest rate for periods within the contractual life of the option is based upon the U.S. treasury yield curve in effect at the time of grant. (2) Expected life (years) Assumption of the expected term were based on the vesting and contractual terms and employee demographics. (3) Expected dividend yield The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. (4) Volatility The volatility assumption was estimated based on historical volatility of the Company's share price applying the guidance provided by ASC 718. The Company begins to estimate the volatility assumption solely based on its historical information since October 2010. Weighted Weighted Aggregate average average remaining intrinsic Number exercise price contractual value Share options of shares (US$) life (Years) (US$) Outstanding as of February 28, 2015 - - - - Granted 1,212,480 15.90 Exercised 40,136 16.10 Forfeited 49,798 16.10 Outstanding as of February 29, 2016 1,122,546 15.88 9.77 11,216,526 Granted 448,400 29.26 Exercised 103,888 16.11 Forfeited 128,176 18.29 Outstanding as of February 28, 2017 1,338,882 20.12 9.48 30,954,058 Granted 89,160 59.50 Exercised 76,491 18.46 Forfeited 23,850 19.44 Outstanding as of February 28, 2018 1,327,701 22.87 8.56 120,039,969 Vested and expected to vest as of February 28, 2018 1,327,701 22.87 8.56 120,039,969 Exercisable as of February 28, 2018 255,253 17.83 7.81 24,363,917 The Company recorded compensation expense of $ 918,290 2,112,155 2,819,750 Total intrinsic value of options exercised for the years ended February 29, 2016, February 28, 2017 and February 28, 2018 was $ 341,003 2,555,454 5,810,756 523,110 1,706,215 2,255,504 As of February 28, 2018, there was $ 13,578,925 5.9 |
DISTRIBUTION TO SHAREHOLDERS
DISTRIBUTION TO SHAREHOLDERS | 12 Months Ended |
Feb. 28, 2018 | |
Distribution To Shareholders Disclosure [Abstract] | |
Distribution To Shareholders Disclosure [Text Block] | 25. DISTRIBUTION TO SHAREHOLDERS On April 27, 2017, the Company declared a cash dividend of $ 0.25 41,165,834 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Feb. 28, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On April 26, 2018, the Company granted 882,892 1 13 109.98 On April 26, 2018, the Company granted 9,000 3 10 109.98 42.09 In June 2018, a federal securities class action lawsuit was filed against the Company and certain of its officers in the U.S. District Court for the Southern District of New York. This class action alleges that certain of Company's press releases and financial information during the alleged class period contained material misstatements and omissions, and seeks to recover damages caused. The Company will defend against the putative shareholder class action lawsuit. The Company is currently unable to estimate the possible loss or possible range of loss, if any, associated with the resolution of this lawsuit. |
SIGNIFICANT ACCOUNTING POLICI36
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Feb. 28, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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 (“U.S. GAAP”). |
Consolidation, Policy [Policy Text Block] | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, which are accounted for under the voting interest model, and its VIEs, VIEs’ subsidiaries and schools consolidated under the variable interest entity consolidation model. All inter-company transactions and balances have been eliminated upon consolidation. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Consolidation of Variable Interest Entities The Company through TAL Beijing and Lebai Information, wholly owned foreign enterprises, has executed a series of contractual agreements with its VIEs, the VIEs’ subsidiaries and schools and the VIEs’ nominee shareholders. For a description of these contractual arrangements, see “Note 1 Organization and Principal ActivitiesThe VIE Arrangements”. These contractual agreements do not provide TAL Beijing and Lebai Information with an equity interest in legal form in the VIEs. As the Company holds no legal form of equity ownership in the VIEs, the Company applied the variable interest entity consolidation model as set forth in Accounting Standards Codification 810, Consolidation (“ASC 810”) instead of the voting interest model of consolidation. By design, the contractual agreements provide TAL Beijing and Lebai Information with a right to receive benefits equal to substantially all of the net income of these entities, and thus under ASC 810, these agreements are considered variable interests. Subsequent to identifying any variable interests, any party holding such variable interests must determine if the entity in which the interest is held is a variable interest entity and subsequently which reporting entity is the primary beneficiary of, and should therefore consolidate the variable interest entity. Among other reasons, an entity is considered a variable interest entity if the holders of the equity investment at risk in the entity, as a group, lack any one of the following characteristics of a controlling financial interest: · The power, through voting rights or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance · The obligation to absorb the entity’s expected losses, or · The right to receive the entity’s expected residual returns A reporting entity is considered to be the primary beneficiary, and thus the accounting parent, of a variable interest entity if it possesses both: (a) the power to direct the activities that most significantly impact the economic performance of the variable interest entity and (b) the obligation to absorb losses and/or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. As a result of the contractual arrangements, the nominee shareholders of the VIEs lack the characteristics of a controlling financial interest in the VIEs and therefore the VIEs are considered to be variable interest entities under ASC 810. The contractual arrangements, by design, provide TAL Beijing and Lebai Information the power to direct the activities that most significantly impact the economic performance of the VIEs and the right to receive substantially all the benefits of the VIEs, which causes TAL Beijing and Lebai Information to be the primary beneficiaries of the VIEs, and accordingly TAL Beijing and Lebai Information consolidate their operations. Determining whether TAL Beijing and Lebai Information are the primary beneficiaries requires a careful evaluation of the facts and circumstances, including whether the contractual agreements are substantive under the applicable legal and financial reporting frameworks, i.e. PRC law and U.S. GAAP. The Company continually reviews its corporate governance arrangements to ensure that the contractual agreements are indeed substantive. The Company has determined that the contractual agreements are in fact valid and legally enforceable. Such arrangements were entered into in order to comply with the underlying legal and/or regulatory restrictions that govern the ownership of a direct equity interest in the VIEs. In the opinion of the Company's PRC counsel, Tian Yuan Law Firm, the contracts are legally enforceable under PRC law. See “Note 1 Organization and Principal ActivitiesThe VIE Arrangements”. The Company has considered the existence of related party relationships, e.g. ownership of an equity interest in the Company and the VIEs, and the effect that might have on the enforceability of the contractual agreements and in turn whether they are substantive. The Company believes there are no barriers to exercise its rights under the contracts and therefore they are substantive and appropriately considered in the consolidation analysis in accordance with ASC 810. In assessing the shareholdings of certain individual parties in the Company and in the VIEs, specifically Mr. Bangxin Zhang, the Company acknowledges that from November 23, 2011, Mr. Bangxin Zhang, a majority nominee shareholder in the VIEs, also holds a majority voting interest in the Company, which resulted from conversion of Class B common shares with ten votes per share to Class A common shares with one vote per share by other shareholders. Therefore, the Company has reassessed the consolidation of its VIEs. Although the contractual arrangements between TAL Beijing and its VIEs were designed to provide TAL Beijing with the characteristics of a controlling financial interest regardless of the respective shareholdings of Mr. Bangxin Zhang, during the period between November 23, 2011 and June 24, 2013, Mr. Bangxin Zhang’s majority voting interest in the Company, when combined with his status as a majority nominee shareholder in the VIEs, could have constrained the ability of the Company to exercise its rights under the contractual agreements. This is due to the fact that Mr. Bangxin Zhang’s majority voting interest in the Company provided him with the legal ability to control the composition of a majority of the board of directors and therefore may have provided him with the legal ability to affect whether or not the Company could exercise the rights contained in the contractual agreements. Mr. Bangxin Zhang did not exercise this power at any time during the period in which he held a majority voting interest in the Company and during such period. In fact, there was no change in the composition of the board of directors or in the day-to-day operations of the Company during the period. On June 24, 2013 and July 29, 2013, the Company and Mr. Bangxin Zhang executed a deed of undertaking dated June 24, 2013 and a side letter dated July 29, 2013, respectively (collectively, the “Deed”). Pursuant to the terms of the Deed, as long as Mr. Bangxin Zhang owns a majority voting interest, whether legally or beneficially, and directly or indirectly, in Company, (1) Mr. Bangxin Zhang cannot requisition or call a meeting of shareholders or propose a shareholders resolution to appoint or remove a director, (2) if shareholders are asked to appoint or remove a director, the maximum number of votes which Mr. Bangxin Zhang will be permitted to exercise in connection with such shareholder approval is equal to the total aggregate number of votes of the then total issued and outstanding shares of the Company held by all members of the Company, other than shares which are owned, whether legally or beneficially, and directly or indirectly by Mr. Bangxin Zhang, less one vote and (3) if shareholders or board of directors are asked to consider or approve any matter related to the Deed, Mr. Bangxin Zhang cannot exercise his voting power. Upon execution of the Deed, despite his ownership of and as long as he holds a majority voting interest, whether legally or beneficially, and directly or indirectly, in the Company, Mr. Bangxin Zhang will (1) not be permitted to requisition or call a meeting of shareholders or propose a shareholders resolution to appoint or remove a director, (2) in relation to any shareholder approvals to appoint or remove a director, only be permitted to exercise up to the number of votes equal to the total aggregate number of votes of the then total issued and outstanding shares of the Company held by all members of the Company, other than shares which are owned, whether legally or beneficially, and directly or indirectly by Mr. Bangxin Zhang, less one vote and (3) in relation to shareholders’ or board of directors’ consideration or approval of any matter related to the Deed, Mr. Bangxin Zhang cannot exercise his voting power. The terms of the Deed prevents Mr. Bangxin Zhang from controlling the rights of the Company as it relates to the contractual agreements, and accordingly, the Company retains a controlling financial interest in the VIEs and would consolidate them as the VIEs’ primary beneficiary. Please see Note 1 for the presentation of abbreviated financial information of the VIEs and the Group without the VIEs, after elimination of intercompany balances and transactions. |
Use of Estimates, Policy [Policy Text Block] | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenue, costs, and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Significant accounting estimates reflected in the Group's consolidated financial statements include purchase price allocation relating to business acquisitions, valuation allowance for deferred tax assets, the useful lives of property and equipment and intangible assets, impairment of intangible assets, long-lived assets, goodwill and long term investments, fair value assessment of long-term investments and consolidation of variable interest entities. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits and highly liquid investments, which are unrestricted as to withdrawal or use, or have remaining maturities of three months or less when purchased. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted cash The Group's restricted cash is related to deposits required by PRC government authorities for establishing new schools and subsidiaries, cash deposit relating to potential acquisition and interest deposits in connection with the term and revolving facilities agreement. |
Short Term investments [Policy Text Block] | Short-term investments Short-term investments include wealth management products, which are mainly deposits with variable interest rates placed with financial institutions and are restricted as to withdrawal and use. The Group classifies the wealth management products as held-to-maturity securities. The original maturities of the short-term investments are greater than three months, but less than twelve months. For investment products indexed to an underlying stock or stock market, the Group elects the fair value method to record them at fair value in accordance with ASC 825 Financial Instruments. Changes in the fair value are reflected in the consolidated statements of operations. The Group's trading securities are comprised of investment portfolio with underlying securities publicly traded in active markets. The investments are reported at fair value and changes in the fair value are reflected in the consolidated statements of operations. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment, net Building 35 40 Computer, network equipment and software 3 Vehicles 4 5 Office equipment and furniture 3 5 Leasehold improvement Shorter of the lease term or estimated useful lives |
Business Combinations Policy [Policy Text Block] | Business combinations Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any noncontrolling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Where the consideration in an acquisition includes contingent consideration 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. In a business combination achieved in stages, the Group remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the remeasurement gain or loss, if any, is recognized in the consolidated statements of operations. Business combinations occurred during the year ended February 28, 2018 are disclosed in Note 3. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Acquired intangible assets, net Acquired intangible assets other than goodwill consist of trade name and domain names, copyrights, student and user base, technology, Trade name and domain names 3.0 10.4 Copyrights 3.0 5.5 Student and user base 1.3 7.0 Technology 5.0 6.0 Partnership agreements 2.6 4.5 Non-compete agreements 2.0 3.0 Licenses 1.7 5.0 Customer relationship 3.0 5.0 Concession 3.0 5.0 School cooperation agreements 5.0 6.4 Teaching materials 10.0 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | 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. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheets as goodwill. Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired. ASC 350-20 permits the Group to first assess 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. Absent from any impairment indicators, the Group performs its annual impairment test on the last day of each fiscal year. The Group does not choose to perform the assessment of qualitative factors for goodwill impairment and performs its annual impairment test using a two-step approach. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchase price over the amounts assigned to assets and liabilities representing the implied fair value of goodwill. The Group recognized no impairment loss on goodwill for any of the periods presented. |
Long Term Investments [Policy Text Block] | Long-term investments The Group’s long-term investments consist of cost method investments, equity method investments, available-for-sale investments, fair value option investments and held-to-maturity investments. Cost method investments For investee companies over which the Group neither has significant influence nor control through investment in common shares or in-substance common shares and which do not have readily determinable fair value, the Group accounts for the investments in cost method, under which the Group carries the investments 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 other-than-temporary impairment 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. Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in common shares or in-substance common shares, 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 50 Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into earnings and accordingly adjusts the carrying amount of the investment. If financial statements of an investee cannot be made available within a reasonable period of time, the Group records its share of the net income or loss of an investee on a one quarter lag basis in accordance with ASC 323-10-35-6. The Group reviews its equity method investments for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investments. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. Available-for-sale investments For investments in investees' preferred shares which are determined to be debt securities, the Group accounts for them as available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income as a component of shareholders’ equity. Realized gains and losses and provision for decline in value judged to be other than temporary, if any, are recognized in the consolidated statements of operations. Fair value option investments The Group elected the fair value option to account for certain investments whereby the change in fair value is recognized in the consolidated statements of operations. Long-term investments include wealth management products, which are mainly deposits with variable interest rates placed with financial institutions and are restricted as to withdrawal and use. The Group classifies the wealth management products as “held-to-maturity” securities. The original maturities of the investments are two years. |
Fair Value Measurement, Policy [Policy Text Block] | 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 pricing 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 assets or liabilities 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. Fair value of financial instruments is disclosed in Note 14. |
Revenue Recognition, Policy [Policy Text Block] | The Group recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Revenue is reported net of business tax, value added tax (“VAT”) and related surcharge. The primary sources of the Group's revenues are as follows: (a) Educational programs and services The educational programs and services primarily consist of after-school group tutoring (including Xueersi small class, Mobby courses and Firstleap) and after-school one-on-one tutoring. Tuition revenue is generally collected in advance and is initially recorded as deferred revenue. Tuition revenue is recognized proportionately as the tutoring sessions are delivered. The revenue for educational programs and services for the years ended February 29, 2016, February 28, 2017 and February 28, 2018 are $ 585,046,737 950,417,433 1,507,898,108 Generally, for Xueersi small class courses, the Group offers refunds for any remaining classes to students who decide to withdraw from a course. The refund is equal to and limited to the amount related to the undelivered classes. For most Mobby courses, the Group offers refunds equal to and limited to the amount related to the undelivered classes to students who withdraw from a course, provided the course is less than two-third completed at the time of withdrawal. After two-third of the course is completed, no refund will be provided. For Firstleap, the Group offers refunds for any remaining classes to students who decide to withdraw from a course, provided the course is less than half completed at the time of withdrawal. After half of the course is completed, no refund will be provided. For personalized premium services, a student can withdraw at any time and receive a refund equal to and limited to the amount related to the undelivered classes. The refund is recorded as a reduction of the related deferred revenue and has no impact on recognized revenue. Historically, the Group has not experienced material refunds on recognized revenue, and as such, no accrual for estimated refunds is deemed necessary. The Group distributes coupons to attract both existing and prospective students to enroll in its courses. The coupon has fixed dollar amounts and can only be used against future courses. The coupon is accounted for as a reduction of revenue when the relevant revenue is recognized in the consolidated statements of operations. (b) Online education services through www.xueersi.com The online education services provided by the Group through www.xueersi.com to its students include live class and pre-recorded course content and the revenue for the years ended February 29, 2016, February 28, 2017 and February 28, 2018 are $ 24,710,561 48,878,453 120,719,041 Students enroll for online courses through www.xueersi.com by the use of prepaid study cards or payment to the Group's online accounts. The proceeds collected are initially recorded as deferred revenue. For live class courses, revenues are recognized proportionately as the tutoring sessions are delivered. For pre-recorded course content, revenues are recognized on a straight line basis over the subscription period from the date in which the students activate the courses to the date in which the subscribed courses end. Refunds are provided to the students who decide to withdraw from the subscribed courses within the course offer period and a proportional refund is based on the percentage of untaken courses to the total courses offered. Historically, the Group has not experienced material refunds on the recognized revenue, and as such, no accrual for estimated refunds is deemed necessary. (c) Others Other revenues are primarily derived from 1) advertising services provided on the Group's online platforms; 2) educational materials sales; and 3) consulting service and test preparation courses related to overseas study. Revenue is recognized after a contract is signed, the price is fixed or determinable, services or products are delivered and collection is reasonably assured. Other revenues for the years ended February 29, 2016, February 28, 2017 and February 28, 2018 are $ 10,191,479 43,803,769 86,398,835 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-based compensation Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital. Forfeitures are recognized as they occur. |
Value Added Tax [Policy Text Block] | Value added tax Pursuant to the PRC tax laws, in case of any product sales, generally the VAT rate is 3 17 The Group's online education services and inter-company technical services are subject to VAT at the rate of 6 6 6 6 Xueersi Education enjoys VAT exemption for book sales from February 2014 to December 2017. Since January 2018, it is subject to a VAT rate of 17 Since May 2016, in accordance with Cai Shui [2016] No. 68, non-academic education service providers who are general VAT payer could elect a simple VAT collection method and apply for a 3 |
Lessee, Leases [Policy Text Block] | Operating leases Leases where substantially all the rewards and risks of the ownership of the assets remain with the leasing companies are accounted for as operating leases. Payments made for the operating leases are charged to the consolidated statements of operations on a straight-line basis over the shorter of the lease term or estimated useful life, and have been included in the consolidated statements of operations. |
Advertising Costs, Policy [Policy Text Block] | Advertising costs The Group expenses advertising costs as incurred. Total advertising costs incurred were $ 2,637,778 5,331,088 22,474,379 |
Government Subsidies [Policy Text Block] | Government subsidies The Group reports government subsidies as other income when received from local government authority with no limitation on the use of the subsidies. The Group receives government subsidies related to government sponsored projects and records such government subsidies as a liability when it is received and records it as other income when the performance obligation is met or fulfilled. Government subsidies received totaled $ 3,301,463 3,107,229 4,559,849 3,327,169 3,113,877 4,650,059 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency translation The functional and reporting currency of the Company is the United States dollar. The functional currency of the Company's PRC subsidiaries, VIEs and VIEs' subsidiaries and schools in the PRC is Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations. For the years ended February 29, 2016, February 28, 2017 and February 28, 2018, the Group recorded exchange loss of $ 5,186,540 1,288,132 3,323,723 For translating the results of the PRC subsidiaries into the functional currency of the Company, assets and liabilities are translated from each subsidiary's functional currency to the reporting currency at the exchange rate on the balance sheet date. Equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and comprehensive income. |
Foreign Currency Risk [Policy Text Block] | Foreign currency risk 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. Cash and cash equivalents, and restricted cash of the Group included aggregate amounts of $ 316,351,713 466,721,083 |
Income Tax, Policy [Policy Text Block] | Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authorities. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive income Comprehensive income includes net income, unrealized gain or loss on available-for-sale investments, and foreign currency translation adjustments. Comprehensive income is reported in the consolidated statements of comprehensive income. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of credit risk Financial instruments that potentially expose the Group to significant concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and restricted cash. The Group places its cash and cash equivalents, short-term investments and restricted cash in financial institutions with high credit ratings. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial instruments The Group's financial instruments consist primarily of cash and cash equivalents, restricted cash, short-term investments, long-term investments accounted for available-for-sale investments, fair value option investments and held-to-maturity investments, amounts due from related parties and amounts due to related parties, accounts payable, income tax payable, long-term debt and bond payable. The Group carries its available-for-sale investments and fair value option investments at fair value. The carrying amount of long-term debt approximates fair value as its interest rates are at the same level of current market yield for comparable debts. The carrying amounts of other financial instruments, except for bond payable and long-term held-to-maturity investments, approximate their fair values because of their generally short maturities. The bond payable and long-term held-to-maturity investments are recorded at amortized cost. |
Earnings Per Share, Policy [Policy Text Block] | Net income per share Basic net income per share is computed by dividing net income attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted net income per 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. The Group has share options, non-vested shares and bond payable which could potentially dilute basic earnings per share in the future. To calculate the number of shares for diluted net income per share, the effect of the share options and non-vested shares is computed using the treasury stock method. The dilutive effect of the bond payable is computed using as-if converted method. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting pronouncements adopted In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new guidance simplifies certain aspects related to income taxes, statement of cash flows, and forfeitures when accounting for share-based payment transactions. 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, 2016, including interim periods within that reporting period. The Group adopted this standard on March 1, 2017 and has elected to account for forfeitures as they occur rather than applying an estimated forfeiture rate to share-based compensation expense. The adoption did not have a material impact on the Group’s financial position or results of operations. However, the retrospective application of cash paid for employee taxes on withheld shares from share-based awards resulted in a $ 9,436,440 19,463,487 Recent accounting pronouncements not yet adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that a company expects to be entitled to in exchange for the goods or services. To achieve this principle, a company must apply five steps including identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) the company satisfies the performance obligations. Additional quantitative and qualitative disclosure to enhance the understanding about the nature, amount, timing, and uncertainty of revenue and cash flows is also required. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing.” ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. The effective date of ASU 2016-10 is the same as the effective date of ASU 2014-09. The Group expects to adopt ASU 2014-09 utilizing the modified retrospective method in the first quarter of fiscal year 2019. The Group has substantially completed an assessment of the impacts of the new standard to its existing portfolio of customer contracts. The Group does not believe the adoption of ASU 2014-09 would have a material effect on its current revenue recognition policies, except that it will be required to assess variable consideration included in its consulting service related to overseas study over the expected service period. The Group has also identified a provision under the new standard in relation to the incremental cost, commission fees, of obtaining a contract and will make judgments and estimates throughout the applicable periods. Certain additional financial statement disclosure are mandated by the new standard including disclosure of contract assets and contract liabilities as well as a disaggregated view of revenue. In January 2016, the FASB issued a new pronouncement ASU 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires 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. The ASU also requires an entity 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 when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 was further amended in February 2018 by ASU 2018-03, “Technical Corrections and Improvements to Financial InstrumentsOverall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This update was issued to clarify certain narrow aspects of guidance concerning the recognition of financial assets and liabilities established in ASU 2016-01. This includes an amendment to clarify that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair valuation method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issued. ASU 2016-01 and ASU 2018-03 are 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 will apply the new standard beginning March 1, 2018. For investments in equity securities without readily determinable fair values, the Group will elect to use the measurement alternative defined as cost, less impairments, adjusted by observable price changes. The Group anticipates that the adoption of ASU 2016-01 may increase the volatility of its other (expense)/income, as a result of the remeasurement of its equity securities upon the occurrence of observable price changes. 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 guidance will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Group is evaluating the impact of the adoption of this standard on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18: Statement of Cash Flows (Topic 230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update do not provide a definition of restricted cash or restricted cash equivalents. 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. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Group is in the process of evaluating the impact of the Update on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Definition of a Business. The Update requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early application of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosures are required at transition. The Group is in the process of evaluating the impact of the Update on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04: IntangiblesGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this Update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group is in the process of evaluating the impact of the Update on its consolidated financial statements. |
ORGANIZATION AND PRINCIPAL AC37
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Major Subsidiaries And Consolidated Variable Interest Entities And Schools [Table Text Block] | As of February 28, 2018, details of the Company's major subsidiaries, its VIEs and VIEs' major subsidiaries and schools are as follows: Place of Later of date of incorporation (or Percentage incorporation establishment) of legal Name or acquisition /operation ownership Principal activities Major Subsidiaries: TAL Holding Limited (“TAL Hong Kong”) March 11, 2008 Hong Kong 100% Intermediate holding company Beijing Century TAL Education Technology Co., Ltd. (“TAL Beijing”) May 8, 2008 Beijing 100% Software sales, and consulting service Beijing Huanqiu Zhikang Shidai Education Consulting Co., Ltd. (“Huanqiu Zhikang”) September 17, 2009 Beijing 100% Education and management consulting service Yidu Huida Education Technology (Beijing) Co., Ltd. (“Yidu Huida”) November 11, 2009 Beijing 100% Software sales and consulting service Yidu Technology Group (“Yidu Cayman”) February 2, 2012 Cayman Islands 100% Intermediate holding company Yidu Technology Group Limited (“Yidu Hong Kong”) April 13, 2012 Hong Kong 100% Intermediate holding company Beijing Xintang Sichuang Education Technology Co., Ltd. (“Beijing Xintang Sichuang”) August 27, 2012 Beijing 100% Software and Network development, sales, and consulting service Zhixuesi Education Consulting (Beijing) Co., Ltd. (“Zhixuesi Beijing”) October 23, 2012 Beijing 100% Software and Network development, sales, and consulting service Pengxin TAL Industrial investment (Shanghai) Co., Ltd. (“Pengxin TAL”) June 26, 2014 Shanghai 100% Investment management and consulting services Tianjin Dongxuetang Education Information Consulting Co., Ltd. (“Tianjin Dongxuetang”) June 15, 2015 Tianjin 100% Educational information consulting and educational software development Wuxi TAL Education Consulting Co., Ltd. (“Wuxi TAL”) January 12, 2016 Wuxi 100% Educational information consulting and educational software development Firstleap Education (“Firstleap”) January 22, 2016 Cayman Islands 100% Intermediate holding company Place of Later of date of incorporation (or Percentage incorporation establishment) of legal Name or acquisition /operation ownership Principal activities Major Subsidiaries Firstleap Education (HK) Limited (“Firstleap Hong Kong”) January 22, 2016 Hong Kong 100% Intermediate holding company Beijing Lebai Information Consulting Co., Ltd. (“Lebai Information”) January 22, 2016 Beijing 100% Education and management consulting service Beijing Yizhen Xuesi Education Technology Co., Ltd. (“Yizhen Xuesi”) November 3, 2016 Beijing 100% Software and Network development, sales, and consulting service VIEs: Beijing Xueersi Education Technology Co., Ltd. (“Xueersi Education”) December 31, 2005 Beijing N/A* Sales of educational materials and products Beijing Xueersi Network Technology Co., Ltd. (“Xueersi Network”) August 23, 2007 Beijing N/A* Technology development and Educational consulting service Xinxin Xiangrong Education Technology (Beijing) Co., Ltd. (“Xinxin Xiangrong”) June 23, 2015 Beijing N/A* Technology development and Educational consulting service Beijing Lebai Education Consulting Co., Ltd. (“Lebai Education”) January 22, 2016 Beijing N/A* Educational consulting service VIEs' major subsidiaries and schools: Beijing Haidian District Xueersi Training School ("Beijing Haidian School") July 3, 2006 Beijing N/A* After-school tutoring for primary and secondary school students Beijing Dongcheng District Xueersi Training School ("Beijing Dongcheng School") March 21, 2008 Beijing N/A* After-school tutoring for primary and secondary school students Shanghai Changning District Xueersi Training School ("Shanghai Changning School") August 1, 2008 Shanghai N/A* After-school tutoring for primary and secondary school students Shanghai Minhang District Xueersi Training School ("Shanghai Minhang School") August 1, 2008 Shanghai N/A* Language education Beijing Xicheng District Xueersi Training School ("Beijing Xicheng School") April 2, 2009 Beijing N/A* After-school tutoring for primary and secondary school students Shanghai Xueersi Education Training Co., Ltd. ("Shanghai Education") July 2, 2009 Shanghai N/A* Educational information consulting and educational software development Shenzhen Xueersi Education Technology Co., Ltd. ("Shenzhen Education") December 22, 2009 Shenzhen N/A* Teaching software research, and development Beijing Haidian District Lejiale Training School (Beijing Haidian Lejiale") March 22, 2010 Beijing N/A* After-school tutoring for primary and secondary school students Wuhan Jiang'an District Xueersi Education Training School ("Wuhan Jiang'an School") December 16, 2010 Wuhan N/A* After-school tutoring for primary and secondary school students Beijing Chaoyang District Xueersi Training School (Beijing Chaoyang School") January 17, 2011 Beijing N/A* After-school tutoring for primary and secondary school students Beijing Xueersi Nanjing Education Technology Co., Ltd. ("Beijing Xueersi Nanjing Education") January 24, 2011 Nanjing N/A* Educational consulting service Chengdu Xueersi Education Consulting Co., Ltd. ("Chengdu Education") March 18, 2011 Chengdu N/A* Educational information consulting and educational software development Place of Later of date of incorporation (or Percentage incorporation establishment) of legal Name or acquisition /operation ownership Principal activities VIEs' major subsidiaries and schools Zhengzhou Jinshui District Xueersi Education Training School ("Zhenzhou Jinshui School") June 18, 2012 Zhengzhou N/A* After-school tutoring for primary and secondary school students Guangzhou Tianhe District Xueersi Training Center ("Guangzhou Tianhe School") July 12, 2012 Guangzhou N/A* After-school tutoring for primary and secondary school students Suzhou Xueersi Culture Training Center ( December 14, 2012 Suzhou N/A* After-school tutoring for primary and secondary school students Guangzhou Yuexiu District Xueersi Training School ("Guangzhou Yuexiu School") March 20, 2013 Guangzhou N/A* After-school tutoring for primary and secondary school students Nanjing Xueersi Education Training School ("Nanjing School") April 19, 2013 Nanjing N/A* After-school tutoring for primary and secondary school students Shenzhen Xueersi Training Center ("Shenzhen School") November 12, 2013 Shenzhen N/A* After-school tutoring for primary and secondary school students Hangzhou Xueersi Training School ("Hangzhou School") November 14, 2013 Hangzhou N/A* After-school tutoring for primary and secondary school students Jinan Xueersi Education Training School ("Jinan School") September 2, 2014 Jinan N/A* After-school tutoring for primary and secondary school students Xi'an Beilin District Xueersi Education Training Center ( April 2, 2015 Xi'an N/A* After-school tutoring for primary and secondary school students Nanjing Firstleap Children English Training Center ("Nanjing Firstleap") January 22, 2016 Nanjing N/A* Language education Xi'an Yanta District Xueersi Training Center ( September 22, 2016 Xi'an N/A* After-school tutoring for primary and secondary school students Beijing Dongfangrenli Trade Development Co., Ltd. ("Dongfangrenli") July 31, 2016 Beijing N/A* Study abroad intermediary service * These entities are controlled by the Company pursuant to the contractual arrangements disclosed below. |
Schedule of Variable Interest Entities [Table Text Block] | The following consolidated financial statement balances and amounts of the Company's VIEs and their subsidiaries and schools, were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions amongst the Company, its subsidiaries, its VIEs and VIEs’ subsidiaries and schools in the Group. As of February 28, As of February 28, 2017 2018 Cash and cash equivalents $ 129,006,713 $ 194,021,200 Short-term investments 28,981,286 17,694,375 Prepaid expenses and other current assets 154,904,786 116,053,338 Total current assets 312,892,785 327,768,913 Property and equipment, net 120,949,643 206,568,630 Other non-current assets 392,352,040 681,906,652 Total assets 826,194,468 1,216,244,195 Deferred revenue-current 465,944,822 772,642,292 Accrued expenses and other current liabilities 127,137,865 225,639,430 Total current liabilities 593,082,687 998,281,722 Total non-current liabilities 27,789,961 42,507,122 Total liabilities $ 620,872,648 $ 1,040,788,844 For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Net revenues $ 575,928,039 $ 978,290,610 $ 1,614,511,918 Net income $ 175,088,200 $ 279,491,964 $ 378,974,597 For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Net cash provided by operating activities $ 204,092,962 $ 219,199,114 $ 325,798,178 Net cash used in investing activities $ (111,318,060) $ (298,626,732) $ (218,127,784) Net cash used in financing activities $ (3,735,386) $ (24,331,967) $ (26,965,278) |
Schedule Of Consolidation Of Entity And Subsidiaries Financial Statement Balances And Amounts [Table Text Block] | As of February 28, As of February 28, 2017 2018 Cash and cash equivalents $ 341,210,291 $ 517,497,891 Short-term investments 200,475,111 769,696,379 Prepaid expenses and other current assets 16,542,818 47,042,962 Total current assets 558,228,220 1,334,237,232 Property and equipment, net 33,357,075 40,697,218 Other non-current assets 411,126,188 463,380,435 Total assets 1,002,711,483 1,838,314,885 Deferred revenue-current 38,202,210 51,633,712 Accrued expenses and other current liabilities 35,855,446 83,471,607 Total current liabilities 74,057,656 135,105,319 Total non-current liabilities 453,111,316 238,201,519 Total liabilities $ 527,168,972 $ 373,306,838 For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Net revenues $ 44,020,738 $ 64,809,045 $ 100,504,066 Net loss $ (72,332,000) $ (167,002,120) $ (184,312,090) For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Net cash (used in) / provided by operating activities $ (6,938,102) $ 159,821,814 $ 359,494,367 Net cash used in investing activities $ (104,033,927) $ (219,638,616) $ (622,228,208) Net cash (used in) / provided by financing activities $ (5,055,065) $ 203,165,316 $ 455,115,774 |
SIGNIFICANT ACCOUNTING POLICI38
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives: Building 35 40 Computer, network equipment and software 3 Vehicles 4 5 Office equipment and furniture 3 5 Leasehold improvement Shorter of the lease term or estimated useful lives |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | The amortization periods by intangible asset classes are as follows: Trade name and domain names 3.0 10.4 Copyrights 3.0 5.5 Student and user base 1.3 7.0 Technology 5.0 6.0 Partnership agreements 2.6 4.5 Non-compete agreements 2.0 3.0 Licenses 1.7 5.0 Customer relationship 3.0 5.0 Concession 3.0 5.0 School cooperation agreements 5.0 6.4 Teaching materials 10.0 |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Business acquisition in fiscal year 2017 | |
Business Acquisition, Pro Forma Information [Table Text Block] | The following summarized unaudited pro forma results of operations for the years ended February 29, 2016 and February 28, 2017 assuming that these acquisitions during the year ended February 28, 2017 occurred as of March 1, 2015. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of March 1, 2015, nor is it indicative of future operating results. For the years ended February 29/28, 2016 2017 (Unaudited) (Unaudited) Pro forma net revenues $ 645,751,588 $ 1,062,742,905 Pro forma net income attributable to TAL Education Group $ 95,833,307 $ 112,849,625 Pro forma net income per share - basic $ 0.60 $ 0.69 Pro forma net income per share - diluted $ 0.56 $ 0.64 |
Business acquisition in fiscal year 2018 | |
Business Acquisition, Pro Forma Information [Table Text Block] | The following summarized unaudited pro forma results of operations for the years ended February 28, 2017 and February 28, 2018 assuming that these acquisitions during the year ended February 28, 2018 occurred as of March 1, 2016. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of March 1, 2016, nor is it indicative of future operating results. For the years ended February 28, 2017 2018 (Unaudited) (Unaudited) Pro forma net revenues $ 1,043,717,568 $ 1,715,774,242 Pro forma net income attributable to TAL Education Group $ 115,054,921 $ 198,105,115 Pro forma net income per share - basic $ 0.71 $ 1.13 Pro forma net income per share - diluted $ 0.65 $ 1.03 |
Shunshun Bida [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The purchase price consisted of the following: US$ Cash consideration $ 19,119,796 Common shares 13,558,991 Fair value of the previously held 30% equity interest: Carrying amount 10,515,391 Gain on remeasurement of fair value as of acquisition date 25,225,611 Total $ 68,419,789 The purchase price was allocated as of July 31, 2016, the date of acquisition, as follows: Amortization US$ period Cash and cash equivalents $ 11,121,264 Other current assets 12,782,176 Rental deposits 1,306,135 Property and equipment, net 423,538 Intangible assets Trade name 6,780,070 10.4 years School cooperation agreements 3,344,834 6.4 years Goodwill 93,004,827 Other current liabilities (4,642,267) Deferred revenue (24,750,882) Deferred tax liabilities (2,052,906) Noncontrolling interest (28,897,000) Total purchase consideration $ 68,419,789 |
Guangzhou Tutoring [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The purchase price was allocated as of November 30, 2016, the date of acquisition, as follows: Amortization US$ period Cash and cash equivalents $ 4,381,051 Other current assets 5,044,431 Intangible assets Student base 4,605,000 5.1 years Goodwill 46,546,189 Deferred revenue (9,425,421) Deferred tax liabilities (1,151,250) Total purchase consideration $ 50,000,000 |
Shanghai YaYa [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The purchase price was allocated as of August 26, 2016, the date of acquisition, as follows: Amortization US$ period Cash and cash equivalents $ 616,947 Account receivables 4,869,685 Other current assets 845,178 Rental deposits 89,375 Property and equipment, net 90,426 Intangible assets Trade name 5,727,995 10.0 years Customer relationship 3,703,704 4.3 years User base 659,769 1.3 years Goodwill 30,888,052 Other current liabilities (1,614,688) Deferred tax liabilities (2,522,867) Noncontrolling interest (18,443,545) Total purchase consideration $ 24,910,031 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Short Term Investments [Table Text Block] | Short-term investments consisted of the following: As of As of February 28, February 28, 2017 2018 Held-to-maturity investments (1) $ 171,703,197 $ 718,541,370 Variable-rate financial instruments (2) 57,753,200 18,223,768 Trading securities (3) - 50,625,616 $ 229,456,397 $ 787,390,754 (1) The Group purchased wealth management products from financial institutions in China and classified them 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 three months to twelve months. The Group estimated that their fair value approximate their amortized costs. (2) The Group purchased several investment products indexed to certain stock or stock markets with maturities less than one year. The Group accounted for them at fair value and recorded a loss of $ 1,246,800 50,570 (3) The Group accounted for its investment in trading securities at fair value and recorded a gain of $ 625,616 |
PREPAID EXPENSES AND OTHER CU41
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | As of As of February 28, February 28, 2017 2018 Prepaid rental $ 16,550,792 $ 29,813,900 Prepayments to suppliers (1) 36,763,795 47,633,175 Interest receivable 4,347,655 8,655,362 Staff advances (2) 2,680,725 7,003,759 Loan to employees (3) 4,095,974 5,459,861 Other deposits 1,923,303 2,577,362 Prepaid VAT 390,253 2,625,726 Study cards and book receivables 1,146,482 4,290,979 Receivable from rendered online advertising services 6,828,823 9,326,072 Receivable from an available-for-sale investment investee (4) 81,099,081 - Loans to third-parties (5) - 5,530,973 Receivables of withoholding tax from employees for option exercise proceeds - 3,627,779 Others 4,395,940 6,690,925 $ 160,222,823 $ 133,235,873 (1) Prepayments to suppliers are primarily for student recruitment services, advertising fees and server hosting fees. Student recruitment service fees are prepaid by the Group's study abroad business to recruitment agencies. Such prepayments are generally short-term and refundable if performance condition is not met. (2) Staff advances are provided to employees primarily for traveling, office expenses and other expenditures which are subsequently expensed as incurred. (3) The Group offers housing benefit plan to employees who have been employed by the Group for three years or more and met certain performance criteria. Under this benefit plan, the eligible employees receive interest-free loans for purposes of home purchases. Each loan has a term of four years and must be repaid by equal annual installments. (4) One of the Group's domestic investees was in the process of terminating its VIE structure as of February 28, 2017, as part of its domestic IPO plan. To facilitate the restructuring, the Group has provided prepayment to the investee in fiscal year 2017 and fully collected the amount in fiscal year 2018. (5) Loans to third-parties are generally mature in less than one year. Upon the maturity of the loans, they will be settled through repayment or conversion to equity interests of the borrowers at the Group's discretion. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Property Plant And Equipment Components [Table Text Block] | Property and equipment, net, consisted of the following: As of As of February 28, February 28, 2017 2018 Building $ 58,823,576 $ 63,127,019 Leasehold improvement 96,232,807 187,585,900 Computer, network equipment and software 55,431,263 91,550,062 Vehicles 627,190 706,695 Office equipment and furniture 12,721,964 26,602,951 Total cost of property and equipment 223,836,800 369,572,627 Less: accumulated depreciation (69,530,082) (122,306,779) $ 154,306,718 $ 247,265,848 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets, net, consisted of the following: As of As of February 28, February 28, 2017 2018 Trade name and domain names $ 23,873,013 $ 25,049,779 Copyrights 1,648,532 1,839,680 Student and user base 10,361,994 10,361,994 Technology 3,179,688 6,247,451 Partnership agreement 349,783 1,437,974 Non-compete agreements 306,268 1,036,688 Licenses 297,861 5,347,836 Customer relationship 4,130,543 4,136,337 Concession 404,523 404,523 School cooperation agreements 3,419,696 3,419,696 Teaching materials 516,544 516,544 Total cost of intangible assets 48,488,445 59,798,502 Less: accumulated amortization (9,780,439) (18,087,362) Less: impairment loss - (357,762) Add: foreign exchange difference (741,198) 2,151,402 $ 37,966,808 $ 43,504,780 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill for the years ended February 28, 2017 and February 28, 2018 consisted of the following: As of As of February 28, February 28, 2017 2018 Beginning balance $ 88,546,783 $ 268,686,951 Addition (Note 3) 184,580,094 12,621,874 Impairment (1,524,266) (1,524,266) Exchange difference (4,439,926) 11,597,570 Goodwill, net $ 267,162,685 $ 291,382,129 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Schedule of Investments [Abstract] | |
Investment Holdings, Schedule of Investments [Table Text Block] | As of As of February 28, February 28, 2017 2018 Cost method investments Minerva Project, Inc. (1) $ 18,000,003 $ 18,000,003 Knewton, Inc. (2) 11,582,167 11,582,167 Other cost method investments (3) 9,163,228 19,078,782 Equity method investments Phoenix E-Learning Corporation (4) 24,157,270 24,660,475 Beijing Haoweilai Gongying Investment Center, LLP (“Gongying Fund”) (5) 3,758,732 4,374,725 Shenzhen Youban Technology Company Limited (“Shenzhen Youban”) (6) 5,783,156 21,418,825 Shanghai Xiaoxin Information Technology Company Limited (“Shanghai Xiaoxin”) (7) 3,400,968 10,397,823 GSV Acceleration Fund I, L.P. (“GSV Fund”) (8) 4,001,335 8,329,070 Hangzhou Feizhu Technology Company Limited (“Hangzhou Feizhu”) (9) - 11,163,616 Other equity method investments (10) 22,051,227 62,816,770 Fair value option investments (11) 10,158,514 7,786,000 Available-for-sale investments (11) 235,675,844 322,777,769 Held-to-maturity investments (12) - 75,219,750 Total $ 347,732,444 $ 597,605,775 (1) In October 2014, the Group acquired minority equity interest in Minerva Project, Inc., a Delaware corporation that is committed to providing an exceptional and accessible liberal arts and sciences education for future leaders and innovators across all disciplines. The total consideration was $ 18,000,003 (2) In January 2016, the Group acquired minority equity interest in Knewton, Inc., a company in adaptive learning incorporated in Delaware with total cash consideration of $ 5,000,001 6,582,166 (3) The Group holds equity interests in several third-party private companies through investments in their common shares or in-substance common shares where these equity interests are generally less than 10 1,269,611 (4) In December 2015, the Group invested $ 30,000,000 32 (5) In May 2016, the Group and two third-parties which are related parties (“third party group”), established Gongying Fund, a limited liability partnership focusing on investing in private education companies. The Group and the third party group owns 20 80 259.0 37.7 51.6 7.5 207.4 30.2 All investment decisions made by Gongying Fund have to be approved by both parties. The Group has the ability to exercise significant influence but does not have control over Gongying Fund due to the other partner’s substantive participating rights, and thereby used the equity method to account for the investment. In fiscal year 2017, Gongying Fund invested RMB 70 10.2 (6) In September 2015, the Group acquired 20 28 (7) In November 2016, the Group acquired 25 14.7 (8) For the years ended February 28, 2017 and 2018, the Group paid $ 3.4 7.7 (9) In November 2017, the Group acquired 32.8 (10) The Group holds 4.8 39.7 The Group recorded $ 5,622,221 757,591 409,229 (11) Please refer to Note 14(a) fair value option investments and available-for-sale investments for details. (12) The Group purchased wealth management products from financial institutions in China and classified them 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 was two years and recorded at amortized cost. The Group estimated that their fair value approximate their carrying amount. |
LONG-TERM PREPAYMENTS AND OTH46
LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Long Term Prepayments Disclosures [Abstract] | |
Schedule Of Prepayments And Other Assets Noncurrent [Table Text Block] | Long-term prepayments and other non-current assets consisted of the following: As of As of February 28, February 28, 2017 2018 Long-term prepayments (1) $ 59,293,208 $ 96,641,852 Loan to employees (2) 10,999,053 11,022,250 Loan receivable (3) 18,027,010 20,875,534 Other non-current assets (4) 7,788,646 9,650,217 $ 96,107,917 $ 138,189,853 (1) As of February 28, 2017 and February 28, 2018, the Group made prepayments to acquire equity interests in several third-party companies. (2) Please see Note 5(3) for details of loan to employees. (3) In October 2016, the Group provided a long-term loan to a third party. The principal amount is $ 17,591,858 120,794,490 7.98 435,152 1,786,645 (4) As of February 28, 2017 and February 28, 2018, other non-current assets were primarily made up of prepayment for property and equipment and the unamortized debt issuance costs to be amortized beyond one year associated with the facilities under the long-term debt as disclosed in Note 13. |
ACCRUED EXPENSES AND OTHER CU47
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Payables and Accruals [Abstract] | |
Schedule Of Accrued Liabilities And Other Current Liabilities [Table Text Block] | Accrued expenses and other current liabilities consisted of the following: As of As of February 28, February 28, 2017 2018 Accrued employee payroll and welfare benefits $ 79,867,924 $ 135,366,042 Amounts due to employees for stock sales proceeds - 24,140,789 Other taxes payable 13,769,327 22,868,616 Accrued employee annual bonus 5,956,144 9,969,633 Accrued operating expenses 1,564,149 8,458,150 Payable for investments and acquisitions 1,807,584 5,111,313 Professional service fee payable 230,098 3,280,294 Payable for acquisitions of intangible assets - 1,766,650 Interest payable 2,999,801 1,451,264 Examination enrollment fees collected on behalf of contests organizers 755,054 828,385 Others 9,880,209 15,881,167 Total $ 116,830,290 $ 229,122,303 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Long Term Investments Fair Value Option Method [Table Text Block] | The Group accounted for its investments in two third-party companies using the fair value option which is how management assesses the return on these investments. Changes in fair value are reflected in the consolidated statement of operations. As of As of February 28, February 28, 2017 2018 Fair value option investments Long-term investment in a third-party online education company (1) $ 3,062,191 $ - Long-term investment in a third-party technology company (2) 7,096,323 7,786,000 $ 10,158,514 $ 7,786,000 (1) In February 2013, the Group acquired 16.85% equity interest in a third-party online education company with a total cash consideration of $3,080,000. The equity interest was acquired through the Group's purchase of its convertible redeemable preferred shares. The Group disposed all its equity interest in this online education company to a third party and recognized a gain of $5,846,737 in fiscal year 2018. (2) In August 2014, the Group acquired 4.76% equity interest in a third-party technology company with a total cash consideration of $5,000,000. The equity interest was acquired through the Group's purchase of its convertible redeemable preferred shares. The fair value change of the investment was an increase of $nil and $274,711 in fiscal years 2017 and 2018, respectively. |
Schedule Of Long Term Investments Fair Value Option Method Roll Forward [Table Text Block] | For the years ended February 29, 2016, February 28, 2017 and February 28, 2018, the changes in the carrying amounts of long-term investments measured using the fair value option on a recurring basis were as follows: Balance as of February 28, 2015 $ 9,282,000 Changes in fair value 1,265,852 Foreign exchange difference (24,852) Balance as of February 29, 2016 $ 10,523,000 Foreign exchange difference (364,486) Balance as of February 28, 2017 $ 10,158,514 Changes in fair value 6,250,878 Disposal (9,038,358) Foreign exchange difference 414,966 Balance as of February 28, 2018 $ 7,786,000 |
Schedule of Available for Sale Securities Noncurrent [Table Text Block] | The Group accounted for the following investments as debt securities and classified as available-for-sale investments, which were measured subsequently at fair value in the balance sheet and unrealized holding gains and losses were reported in other comprehensive income. As of As of February 28, February 28, 2017 2018 Available-for-sale investments in: BabyTree Inc. (3) $ 98,216,000 $ 121,624,368 Guokr Corporation Limited (4) 15,745,000 15,745,000 Changing (5) 65,623,000 93,571,000 Shanghai Zhengda Ximalaya Technology Company Limited (“Ximalaya”) (6) 9,466,249 15,994,153 Know Box Limited (7) 4,660,307 20,627,000 Other third-party companies (8) 41,965,288 55,216,248 $ 235,675,844 $ 322,777,769 (3) In January 2014, the Group acquired minority equity interests in BabyTree Inc. by purchasing its Series E convertible redeemable preferred shares with a total cash consideration of $ 23,475,000 72,799,000 26,192,398 In fiscal year 2018, the Group sold part of the equity interest in Babytree Inc. to Gongying Fund and recognized $ 3,043,589 (4) In October 2014, the Group acquired minority equity interests in Guokr Corporation Limited by purchasing its Series C convertible redeemable preferred shares with a total cash consideration of $ 15,000,000 (5) In April and August 2015, the Group acquired 30 In fiscal year 2017, the Group entered into agreements with Changing and its founders to a) Purchase a portion of ordinary shares from one of Changing’s founders with cash consideration of $ 4,825,000 b) Surrender a portion of Series C convertible redeemable preferred shares to Changing in exchange for the Guangzhou Tutoring, which was previously disposed in fiscal year 2016. Please refer to Note 3 and Note 15 for details. c) Purchase a portion of Series C convertible redeemable preferred shares of Changing with total cash consideration of $ 17,861,744 12,171,744 The above three transactions were discrete and separately accounted for. In fiscal year 2018, the Group acquired minority equity interests in Changing by purchasing its Series D convertible redeemable preferred shares with a total cash consideration of $ 15,000,000 An increase of change in fair value of the investment in Changing amounted to $ 1,400,256 12,948,000 (6) In August 2016, the Group acquired minority equity interests in Ximalaya, an online Frequency Modulation (“FM”) radio platform, by purchasing its Series C+ convertible redeemable preferred shares with a total cash consideration of $ 9,466,249 5,722,345 (7) In July 2015, the Group acquired minority equity interests in Know Box Limited, an online platform for the interaction between teachers and students, by purchasing its Series A convertible redeemable preferred shares with a total cash consideration of $ 4,660,307 10,197,365 5,372,745 (8) The Group acquired minority equity interest in several other third-party private companies, the majority of which are engaged in online platform or online education services. The Group holds minority equity interests of these companies through purchasing their convertible redeemable preferred shares. The Group accounted for these investments as available-for-sale investments. There was an increase of $ 743,478 1,321,739 1,564,200 6,047,689 1,803,607 |
Schedule of Available for Sale Securities Noncurrent Roll Forward [Table Text Block] | The long-term investments accounted for as available-for-sale investments on a recurring basis are as follows: US$ Balance as of February 29, 2016 $ 188,790,669 Purchase 40,412,690 Disposal (5) (50,000,000) Transfer out upon gaining control of Shunshun Bida (10,515,391) Transfer out due to change of accounting method (1,165,077) Changes in fair value 74,942,734 Impairment loss (6,047,689) Foreign exchange difference (742,092) Balance as of February 28, 2017 $ 235,675,844 Purchase 36,044,236 Disposal (7,476,733) Changes in fair value 51,557,227 Impairment loss (1,803,607) Foreign exchange difference 8,780,802 Balance as of February 28, 2018 $ 322,777,769 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | As of February 28, 2017 and February 28, 2018, information about inputs for the fair value measurements of the Group's assets that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair Value Measurement at Reporting Date Using Quoted Prices in Significant Other Significant February 28, Active Market for Observable Unobservable Description 2017 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Short-term investments Variable-rate financial instruments $ 57,753,200 - $ 57,753,200 - Long-term investments Fair value option investments $ 10,158,514 - - $ 10,158,514 Available-for-sale investments $ 235,675,844 - - $ 235,675,844 Total $ 303,587,558 - $ 57,753,200 $ 245,834,358 Fair Value Measurement at Reporting Date Using Quoted Prices in Significant Other Significant February 28, Active Market for Observable Unobservable Description 2018 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Short-term investments Variable-rate financial instruments $ 18,223,768 - $ 18,223,768 - Trading securities $ 50,625,616 $ 50,625,616 - - Long-term investments Fair value option investments $ 7,786,000 - - $ 7,786,000 Available-for-sale investments $ 322,777,769 - - $ 322,777,769 Total $ 399,413,153 $ 50,625,616 $ 18,223,768 $ 330,563,769 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Provision (credit) for income tax consisted of the following: For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Current - PRC income tax expenses $ 34,474,418 $ 37,720,637 $ 48,958,623 Deferred - PRC income tax expenses (991,674) (3,654,948) (4,304,898) Total $ 33,482,744 $ 34,065,689 $ 44,653,725 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of As of February 28, February 28, 2017 2018 Non-current deferred tax assets: Prepaid rental 1,694,073 2,386,560 Property and equipment 591,917 657,593 Impairment loss on long-term investments 2,098,309 553,229 Others 33,129 66,057 Tax losses carry-forward 27,830,452 38,248,065 Less: valuation allowance (16,059,579) (24,550,491) Non-current deferred tax assets, net $ 16,188,301 $ 17,361,013 Non-current deferred tax liabilities: Accrued ADR income 34,500 - Intangible assets 5,959,102 5,342,969 Property and equipment 852,719 274,524 Long-term investments 6,339,565 14,421,547 Non-current deferred tax liabilities $ 13,185,886 $ 20,039,040 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the provision for income taxes computed by applying the PRC EIT rates of 25 For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Income before provision for income tax $ 136,902,200 $ 154,580,964 $ 246,993,826 PRC statutory income tax rate 25% 25% 25% Income tax at statutory income tax rate 34,225,550 38,645,241 61,748,457 Effect of non-deductible and super deduction expenses 1,331,053 1,853,002 (2,244,191) Effect of income tax exemptions and preferential tax rates (12,830,838) (26,256,983) (37,390,108) Effect of income tax rate difference in other jurisdictions 10,159,093 16,575,113 14,949,433 Change in valuation allowance 597,886 3,249,316 7,590,134 Provision for income tax $ 33,482,744 $ 34,065,689 $ 44,653,725 |
Summary of Income Tax Holiday [Table Text Block] | If Xueersi Education, Yidu Huida, TAL Beijing, Beijing Xintang Sichuang, Yinghe Youshi and Yizhen Xuesi did not enjoy income tax exemptions and preferential tax rates for the years ended February 29, 2016, February 28, 2017 and February 28, 2018, the increase in income tax expenses and net income per share amounts would be as follows: For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Increase in income tax expenses $ 12,830,838 $ 26,256,983 $ 37,390,108 Net income per common share-basic $ 0.56 $ 0.56 $ 0.90 Net income per common share-diluted $ 0.53 $ 0.52 $ 0.82 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Numerator: Net income attributable to TAL Education Group's shareholders $ 102,878,518 $ 116,880,012 $ 198,439,936 Eliminate the dilutive effect of interest expense of the bond payable 7,499,323 7,539,778 2,464,804 Numerator for diluted net income per share $ 110,377,841 $ 124,419,790 $ 200,904,740 Denominator: Weighted average shares outstanding Basic 160,109,169 162,548,494 174,979,574 Effect of dilutive securities: Dilutive effect of non-vested shares and options (i) 5,447,276 8,467,663 11,084,069 Dilutive effect of the bond payable 17,499,810 17,492,262 8,267,662 Denominator for diluted net income per share 183,056,255 188,508,419 194,331,305 Net income per common share attributable to TAL Education Group's shareholders-basic (ii) $ 0.64 $ 0.72 $ 1.13 Net income per common share attributable to TAL Education Group's shareholders-diluted $ 0.60 $ 0.66 $ 1.03 (i) For the years ended February 29, 2016, February 28, 2017 and February 28, 2018, 1,421,576 1,814,724 381,426 (ii) The Company's common shares are divided into Class A and Class B common shares. Holders of Class A and Class B common shares have the same dividend rights. Therefore, the Company does not present earnings per share for each separate class. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The Group had the following balances and transactions with related parties: Balances: As of As of February 28, February 28, 2017 2018 Amounts due from related parties-current (i) $ 3,424,285 $ 3,228,839 Amounts due to related parties-current (ii) $ 3,042,785 $ 8,745,624 Amounts due to related parties-non-current (ii) $ 2,840,000 $ 270,657 Transactions: For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Services fees $ 426,084 $ 596,987 $ 879,796 Other revenue $ - $ 60,657 $ 1,016,040 Purchase of equipment $ - $ - $ 947,281 Disposal gain (iii) $ - $ - $ 3,043,589 (i) The amounts due from related parties represent loans, prepayments to certain investees and advance received by an investee on behalf of the Group. (ii) The amounts due to related parties are in connection with investment payable and advanced service fees received from related parties. (iii) As disclosed in Note 14(a)(3), the Group sold part of equity interest in Babytree Inc. to Gongying Fund and recognized $ 3,043,589 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum payments under non-cancellable operating leases as of February 28, 2018 were as follows: Fiscal year ending February 2019 $ 226,097,223 February 2020 227,316,124 February 2021 201,111,732 February 2022 169,360,927 February 2023 122,846,419 Thereafter 190,792,679 Total $ 1,137,525,104 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Table below shows the summary of share-based compensation expense: For the year ended For the year ended For the year ended February 29, February 28, February 28, 2016 2017 2018 Cost of revenues $ 42,679 $ 111,001 $ 365,065 Selling and marketing expenses 2,479,864 3,367,840 5,037,013 General and administrative expenses 23,324,954 32,636,359 41,747,660 Total $ 25,847,497 $ 36,115,200 $ 47,149,738 |
Schedule of Nonvested Share Activity [Table Text Block] | The activities of non-vested shares granted under the 2010 Share Incentive Plan are summarized as follows: Number of Weighted non-vested average grant date shares fair value Outstanding as of February 28, 2015 12,586,650 10.09 Granted 4,877,946 18.67 Forfeited 1,355,964 9.08 Vested 1,869,530 10.78 Outstanding as of February 29, 2016 14,239,102 13.04 Granted 1,564,442 36.42 Forfeited 425,980 19.53 Vested 2,276,558 13.04 Outstanding as of February 28, 2017 13,101,006 15.62 Granted 1,111,836 74.63 Forfeited 187,719 27.95 Vested 2,375,107 14.81 Outstanding as of February 28, 2018 11,650,016 21.21 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of each option granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used for grants during the applicable periods: For the year ended For the year ended For the year ended Risk-free interest rate (1) 1.64%-1.97% 1.34%-2.36% 1.99%-2.55% Expected life (years) (2) 6.25-8.75 6.56-7.92 6.17-6.25 Expected dividend yield (3) 0% 0% 0% Volatility (4) 34.0%-34.7% 33.1%-33.8% 32.8%-33.8% Fair value of options at grant date per share $7.66 to $10.65 $13.04 to $19.13 $28.69 to $38.71 (1) Risk-free interest rate Risk-free interest rate for periods within the contractual life of the option is based upon the U.S. treasury yield curve in effect at the time of grant. (2) Expected life (years) Assumption of the expected term were based on the vesting and contractual terms and employee demographics. (3) Expected dividend yield The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. (4) Volatility The volatility assumption was estimated based on historical volatility of the Company's share price applying the guidance provided by ASC 718. The Company begins to estimate the volatility assumption solely based on its historical information since October 2010. |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Share options activity for the years ended February 29, 2016, February 28, 2017 and February 28, 2018 was as follows: Weighted Weighted Aggregate average average remaining intrinsic Number exercise price contractual value Share options of shares (US$) life (Years) (US$) Outstanding as of February 28, 2015 - - - - Granted 1,212,480 15.90 Exercised 40,136 16.10 Forfeited 49,798 16.10 Outstanding as of February 29, 2016 1,122,546 15.88 9.77 11,216,526 Granted 448,400 29.26 Exercised 103,888 16.11 Forfeited 128,176 18.29 Outstanding as of February 28, 2017 1,338,882 20.12 9.48 30,954,058 Granted 89,160 59.50 Exercised 76,491 18.46 Forfeited 23,850 19.44 Outstanding as of February 28, 2018 1,327,701 22.87 8.56 120,039,969 Vested and expected to vest as of February 28, 2018 1,327,701 22.87 8.56 120,039,969 Exercisable as of February 28, 2018 255,253 17.83 7.81 24,363,917 |
ORGANIZATION AND PRINCIPAL AC54
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) | 12 Months Ended |
Feb. 28, 2018 | |
TAL Hong Kong [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
TAL Beijing [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Huanqiu Zhikang [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Yidu Huida [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Yidu Cayman [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Yidu Hong Kong [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Beijing Xintang Sichuang [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Zhixuesi Beijing [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Pengxin TAL [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Tianjin Dongxuetang [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Wuxi TAL [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Firstleap [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Firstleap Hong Kong [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Lebai Information [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Yizhen Xuesi [Member] | |
Organization And Principal Activities [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
ORGANIZATION AND PRINCIPAL AC55
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details 1) - USD ($) | 12 Months Ended | ||||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | ||
Balance Sheet | |||||
Cash and cash equivalents | $ 711,519,091 | $ 470,217,004 | $ 434,042,036 | $ 470,157,430 | |
Short-term investments | 787,390,754 | 229,456,397 | |||
Prepaid expenses and other current assets | 133,235,873 | 160,222,823 | |||
Total current assets | 1,662,006,145 | 871,121,005 | |||
Property and equipment, net | 247,265,848 | 154,306,718 | |||
Other non-current assets | [1] | 9,650,217 | 7,788,646 | ||
Total assets | 3,054,559,080 | 1,828,905,951 | |||
Deferred revenue-current | 824,276,004 | 504,147,032 | |||
Accrued expenses and other current liabilities | 229,122,303 | 116,830,290 | |||
Total current liabilities | 1,133,387,041 | 667,140,343 | |||
Total liabilities | 1,414,095,682 | 1,148,041,620 | |||
Income And Cash Flow Statement | |||||
Net revenues | 1,715,015,984 | 1,043,099,655 | 619,948,777 | ||
Net income (loss) | 194,662,507 | 112,489,844 | 102,756,200 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||||
Balance Sheet | |||||
Cash and cash equivalents | 517,497,891 | 341,210,291 | |||
Short-term investments | 769,696,379 | 200,475,111 | |||
Prepaid expenses and other current assets | 47,042,962 | 16,542,818 | |||
Total current assets | 1,334,237,232 | 558,228,220 | |||
Property and equipment, net | 40,697,218 | 33,357,075 | |||
Other non-current assets | 463,380,435 | 411,126,188 | |||
Total assets | 1,838,314,885 | 1,002,711,483 | |||
Deferred revenue-current | 51,633,712 | 38,202,210 | |||
Accrued expenses and other current liabilities | 83,471,607 | 35,855,446 | |||
Total current liabilities | 135,105,319 | 74,057,656 | |||
Total non-current liabilities | 238,201,519 | 453,111,316 | |||
Total liabilities | 373,306,838 | 527,168,972 | |||
Income And Cash Flow Statement | |||||
Net revenues | 100,504,066 | 64,809,045 | 44,020,738 | ||
Net income (loss) | (184,312,090) | (167,002,120) | (72,332,000) | ||
Net cash provided by/ (used in) operating activities | 359,494,367 | 159,821,814 | (6,938,102) | ||
Net cash used in investing activities | (622,228,208) | (219,638,616) | (104,033,927) | ||
Net cash (used in) / provided by financing activities | 455,115,774 | 203,165,316 | (5,055,065) | ||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | |||||
Balance Sheet | |||||
Cash and cash equivalents | 194,021,200 | 129,006,713 | |||
Short-term investments | 17,694,375 | 28,981,286 | |||
Prepaid expenses and other current assets | 116,053,338 | 154,904,786 | |||
Total current assets | 327,768,913 | 312,892,785 | |||
Property and equipment, net | 206,568,630 | 120,949,643 | |||
Other non-current assets | 681,906,652 | 392,352,040 | |||
Total assets | 1,216,244,195 | 826,194,468 | |||
Deferred revenue-current | 772,642,292 | 465,944,822 | |||
Accrued expenses and other current liabilities | 225,639,430 | 127,137,865 | |||
Total current liabilities | 998,281,722 | 593,082,687 | |||
Total non-current liabilities | 42,507,122 | 27,789,961 | |||
Total liabilities | 1,040,788,844 | 620,872,648 | |||
Income And Cash Flow Statement | |||||
Net revenues | 1,614,511,918 | 978,290,610 | 575,928,039 | ||
Net income (loss) | 378,974,597 | 279,491,964 | 175,088,200 | ||
Net cash provided by/ (used in) operating activities | 325,798,178 | 219,199,114 | 204,092,962 | ||
Net cash used in investing activities | (218,127,784) | (298,626,732) | (111,318,060) | ||
Net cash (used in) / provided by financing activities | $ (26,965,278) | $ (24,331,967) | $ (3,735,386) | ||
[1] | As of February 28, 2017 and February 28, 2018, other non-current assets were primarily made up of prepayment for property and equipment and the unamortized debt issuance costs to be amortized beyond one year associated with the facilities under the long-term debt as disclosed in Note 13. |
ORGANIZATION AND PRINCIPAL AC56
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Organization And Principal Activities [Line Items] | |||
Net Revenue From Variable Interest Entity And Subsidiaries Of Variable Interest Entity And Schools As Percentage Of Total Net Revenue | 94.10% | ||
Term of Agreement, Description | 10 | ||
Xinxin Xiangrong [Member] | |||
Organization And Principal Activities [Line Items] | |||
Number of Legal Owners of Variable Interest Entities | 3 | ||
Mr Bangxin Zhang [Member] | |||
Organization And Principal Activities [Line Items] | |||
Voting Interest Percentage In Any Vote Pertaining To Any Specific Matters Related To Deed | 50.00% | ||
Number Of Votes Considered For Deduction For Appointment And Removal Of Director By Shareholders | 1 | ||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | |||
Organization And Principal Activities [Line Items] | |||
Amount Payable By Variable Interest Entity Subsidiaries Of Variable Interest Entity And Schools To Wholly Foreign Owned Enterprise | $ 60.3 | $ 49 | $ 17.9 |
Beijing Xueersi Education Technology Co Ltd and Beijing Xueersi Education Network Co Ltd [Member] | |||
Organization And Principal Activities [Line Items] | |||
Number of Legal Owners of Variable Interest Entities | 4 |
SIGNIFICANT ACCOUNTING POLICI57
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Feb. 28, 2018 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 35 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Computer Network Equipment And Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office equipment and furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office equipment and furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Leasehold improvement [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the lease term or estimated useful lives |
SIGNIFICANT ACCOUNTING POLICI58
SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Feb. 28, 2018 | |
Partnership agreements [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 2 years 7 months 6 days |
Partnership agreements [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 4 years 6 months |
Trade name and domain names [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 3 years |
Trade name and domain names [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 10 years 4 months 24 days |
Copyrights [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 3 years |
Copyrights [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 5 years 6 months |
Student and User Base [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 1 year 3 months 18 days |
Student and User Base [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 7 years |
Technology [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 5 years |
Technology [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 6 years |
Non-compete agreements [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 2 years |
Non-compete agreements [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 3 years |
Licenses [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 1 year 8 months 12 days |
Licenses [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 5 years |
Customer relationship [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 3 years |
Customer relationship [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 5 years |
Concession [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 3 years |
Concession [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 5 years |
School cooperation agreements [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 5 years |
School cooperation agreements [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 6 years 4 months 24 days |
Teaching Materials [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 10 years |
SIGNIFICANT ACCOUNTING POLICI59
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Significant Accounting Policies [Line Items] | |||
Revenue, Net, Total | $ 1,715,015,984 | $ 1,043,099,655 | $ 619,948,777 |
Advertising Expense | 22,474,379 | 5,331,088 | 2,637,778 |
Government Subsidies Received | 4,559,849 | 3,107,229 | 3,301,463 |
Government Subsidies | 4,650,059 | 3,113,877 | 3,327,169 |
Foreign Currency Transaction Gain (Loss), Realized | 3,323,723 | 1,288,132 | 5,186,540 |
Assets Aggregate Value Denominated in Foreign Currency | 466,721,083 | 316,351,713 | |
Payments Related to Tax Withholding for Share-based Compensation | 13,997,413 | 19,463,487 | 9,436,440 |
Accounting Standards Update 2014-09 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Cumulative Effect on Retained Earnings, Net of Tax | $ 0 | ||
Small Scale VAT Payers [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 3.00% | ||
General VAT Payers [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 17.00% | ||
Book sales [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 17.00% | ||
Beijing Xintang Sichuang Education Technology Co Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 6.00% | ||
Zhixuesi Education Consulting Beijing Co Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 6.00% | ||
Simple VAT Collection Method Payers [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 3.00% | ||
Xueersi Education [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 6.00% | ||
Yidu Huida [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 6.00% | ||
Educational Programs And Services [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenue, Net, Total | $ 1,507,898,108 | 950,417,433 | 585,046,737 |
Online Education Services [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenue, Net, Total | 120,719,041 | 48,878,453 | 24,710,561 |
Sales Of Education Materials Online Advertising Services And Others [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenue, Net, Total | $ 86,398,835 | $ 43,803,769 | $ 10,191,479 |
Minimum [Member] | Equity Method Investee [Member] | |||
Significant Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 20.00% | ||
Maximum [Member] | Equity Method Investee [Member] | |||
Significant Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Beijing Century TAL Education Technology Co Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 6.00% | ||
Xinxin Xiangrong Education Technology Beijing Co Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 6.00% | ||
Pengxin TAL [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 6.00% | ||
Yizhen Xuesi [Member] | |||
Significant Accounting Policies [Line Items] | |||
Value Added Tax Rate | 6.00% |
BUSINESS ACQUISITION (Details)
BUSINESS ACQUISITION (Details) - USD ($) | 1 Months Ended | |||
Aug. 26, 2016 | Jul. 31, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | |
Intangible assets | ||||
Goodwill | $ 291,382,129 | $ 267,162,685 | ||
Shanghai YaYa [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 616,947 | |||
Account receivables | 4,869,685 | |||
Rental deposits | 89,375 | |||
Property and equipment, net | 90,426 | |||
Intangible assets | ||||
Deferred tax liabilities | (2,522,867) | |||
Noncontrolling interest | (18,443,545) | |||
Total purchase consideration | 24,910,031 | |||
Goodwill | 30,888,052 | |||
Other current assets | 845,178 | |||
Other current liabilities | (1,614,688) | |||
Shunshun Bida [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 11,121,264 | |||
Rental deposits | 1,306,135 | |||
Property and equipment, net | 423,538 | |||
Intangible assets | ||||
Deferred tax liabilities | (2,052,906) | |||
Deferred revenue | (24,750,882) | |||
Noncontrolling interest | (28,897,000) | |||
Total purchase consideration | 68,419,789 | |||
Goodwill | 93,004,827 | |||
Other current assets | 12,782,176 | |||
Other current liabilities | (4,642,267) | |||
Trade name [Member] | Shanghai YaYa [Member] | ||||
Intangible assets | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 5,727,995 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||
Trade name [Member] | Shunshun Bida [Member] | ||||
Intangible assets | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 6,780,070 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years 4 months 24 days | |||
Customer relationship [Member] | Shanghai YaYa [Member] | ||||
Intangible assets | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 3,703,704 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 3 months 18 days | |||
School cooperation agreements [Member] | Shunshun Bida [Member] | ||||
Intangible assets | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 3,344,834 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 4 months 24 days | |||
User Base [Member] | Shanghai YaYa [Member] | ||||
Intangible assets | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 659,769 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 3 months 18 days |
BUSINESS ACQUISITION (Details 1
BUSINESS ACQUISITION (Details 1) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Fair value of the previously held equity interest: | ||||
Gain on remeasurement of fair value as of acquisition date | $ 0 | $ 25,225,611 | $ 971,681 | |
Shunshun Bida [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 19,119,796 | |||
Common shares | 13,558,991 | |||
Fair value of the previously held equity interest: | ||||
Carrying amount | 10,515,391 | |||
Gain on remeasurement of fair value as of acquisition date | 25,225,611 | |||
Total | $ 68,419,789 |
BUSINESS ACQUISITION (Details 2
BUSINESS ACQUISITION (Details 2) - USD ($) | 1 Months Ended | ||
Nov. 30, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | |
Intangible assets | |||
Goodwill | $ 291,382,129 | $ 267,162,685 | |
Guangzhou Tutoring [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 4,381,051 | ||
Intangible assets | |||
Goodwill | 46,546,189 | ||
Deferred revenue | (9,425,421) | ||
Deferred tax liabilities | (1,151,250) | ||
Total purchase consideration | 50,000,000 | ||
Other current assets | 5,044,431 | ||
Student Base [Member] | Guangzhou Tutoring [Member] | |||
Intangible assets | |||
Intangible assets | $ 4,605,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 1 month 6 days |
BUSINESS ACQUISITION (Details 3
BUSINESS ACQUISITION (Details 3) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Business Acquisition [Line Items] | |||
Pro forma net revenues | $ 1,715,774,242 | $ 1,043,717,568 | |
Pro forma net income attributable to TAL Education Group | $ 198,105,115 | $ 115,054,921 | |
Pro forma net income per share - basic | $ 1.13 | $ 0.71 | |
Pro forma net income per share - diluted | $ 1.03 | $ 0.65 | |
Other acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Pro forma net revenues | $ 1,062,742,905 | $ 645,751,588 | |
Pro forma net income attributable to TAL Education Group | $ 112,849,625 | $ 95,833,307 | |
Pro forma net income per share - basic | $ 0.69 | $ 0.6 | |
Pro forma net income per share - diluted | $ 0.64 | $ 0.56 |
BUSINESS ACQUISITION (Details T
BUSINESS ACQUISITION (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2016 | Aug. 26, 2016 | Jul. 31, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 291,382,129 | $ 267,162,685 | ||||
Other acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 14,141,026 | |||||
Noncontrolling interest | 1,393,912 | |||||
Purchase price allocation | ||||||
Business Combination Cash Consideration | 12,340,722 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 3,464,230 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 3,346,694 | |||||
Total Consideration of Business Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 12,621,874 | |||||
Noncontrolling interest | 3,642,544 | |||||
Purchase price allocation | ||||||
Business Combination Cash Consideration | 16,164,599 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 5,781,566 | |||||
Payments to Acquire Businesses, Gross | $ 15,865,789 | |||||
Shanghai YaYa [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Consideration Transferred | $ 9,559,154 | |||||
Goodwill | 30,888,052 | |||||
Noncontrolling interest | $ 18,443,545 | |||||
Purchase price allocation | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 51.00% | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest, Total | $ 24,910,031 | |||||
Payments to Acquire Businesses, Gross | $ 15,350,877 | |||||
Shunshun Bida [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Consideration Transferred | $ 10,515,391 | |||||
Payments To Acquire Minority Interest From Noncontrolling Interest Holder | $ 16,310,319 | |||||
Goodwill | 93,004,827 | |||||
Noncontrolling interest | 28,897,000 | |||||
Purchase price allocation | ||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 13,558,991 | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 66.00% | 30.00% | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest, Total | $ 68,419,789 | |||||
Payments to Acquire Businesses, Gross | $ 19,119,796 | |||||
Equity Interest From Noncontrolling Interest After Business Combination | 14.00% | |||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 80.00% | |||||
Guangzhou Tutoring [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 46,546,189 | |||||
Purchase price allocation | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest, Total | $ 50,000,000 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | |
Short-term investments | $ 787,390,754 | $ 229,456,397 | |
Trading Securities [Member] | |||
Short-term investments | [1] | 50,625,616 | 0 |
Held-to-maturity Securities [Member] | |||
Short-term investments | [2] | 718,541,370 | 171,703,197 |
Variable-rate Financial Instruments [Member] | |||
Short-term investments | [3] | $ 18,223,768 | $ 57,753,200 |
[1] | The Group accounted for its investment in trading securities at fair value and recorded a gain of $625,616 resulting from changing in fair value for the year ended February 28, 2018. | ||
[2] | The Group purchased wealth management products from financial institutions in China and classified them 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 three months to twelve months. The Group estimated that their fair value approximate their amortized costs. | ||
[3] | The Group purchased several investment products indexed to certain stock or stock markets with maturities less than one year. The Group accounted for them at fair value and recorded a $1,246,800 loss and a $50,570 gain resulting from changing in fair value for the years ended February 28, 2017 and February 28, 2018, respectively. |
SHORT-TERM INVESTMENTS (Detai66
SHORT-TERM INVESTMENTS (Details Textual) - USD ($) | 12 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Variable-rate Financial Instruments, Changes In Fair Value Of Investments | $ 50,570 | $ 1,246,800 |
Trading Securities, Realized Gain (Loss) | $ 625,616 |
PREPAID EXPENSES AND OTHER CU67
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS [Line Items] | |||
Prepaid rental | $ 29,813,900 | $ 16,550,792 | |
Prepayments to suppliers | [1] | 47,633,175 | 36,763,795 |
Interest receivable | 8,655,362 | 4,347,655 | |
Staff advances | [2] | 7,003,759 | 2,680,725 |
Loan to employees | [3] | 5,459,861 | 4,095,974 |
Other deposits | 2,577,362 | 1,923,303 | |
Prepaid VAT | 2,625,726 | 390,253 | |
Study cards and book receivables | 4,290,979 | 1,146,482 | |
Receivable from rendered online advertising services | 9,326,072 | 6,828,823 | |
Receivable from an available-for-sale investment investee | [4] | 0 | 81,099,081 |
Loans to third-parties | [5] | 5,530,973 | 0 |
Receivables of withoholding tax from employees for option exercise proceeds | 3,627,779 | 0 | |
Others | 6,690,925 | 4,395,940 | |
Prepaid expenses and other current assets | $ 133,235,873 | $ 160,222,823 | |
[1] | Prepayments to suppliers are primarily for student recruitment services, advertising fees and server hosting fees. Student recruitment service fees are prepaid by the Group's study abroad business to recruitment agencies. Such prepayments are generally short-term and refundable if performance condition is not met. | ||
[2] | Staff advances are provided to employees primarily for traveling, office expenses and other expenditures which are subsequently expensed as incurred. | ||
[3] | The Group offers housing benefit plan to employees who have been employed by the Group for three years or more and met certain performance criteria. Under this benefit plan, the eligible employees receive interest-free loans for purposes of home purchases. Each loan has a term of four years and must be repaid by equal annual installments.The Group offers housing benefit plan to employees who have been employed by the Group for three years or more and met certain performance criteria. Under this benefit plan, the eligible employees receive interest-free loans for purposes of home purchases. Each loan has a term of four years and must be repaid by equal annual installments. | ||
[4] | One of the Group's domestic investees was in the process of terminating its VIE structure as of February 28, 2017, as part of its domestic IPO plan. To facilitate the restructuring, the Group has provided prepayment to the investee in fiscal year 2017 and fully collected the amount in fiscal year 2018. | ||
[5] | Loans to third-parties are generally mature in less than one year. Upon the maturity of the loans, they will be settled through repayment or conversion to equity interests of the borrowers at the Group's discretion. |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total cost of property and equipment | $ 369,572,627 | $ 223,836,800 |
Less: accumulated depreciation | (122,306,779) | (69,530,082) |
Property, Plant and Equipment, Net, Total | 247,265,848 | 154,306,718 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of property and equipment | 63,127,019 | 58,823,576 |
Leasehold improvement | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of property and equipment | 187,585,900 | 96,232,807 |
Computer, network equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of property and equipment | 91,550,062 | 55,431,263 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of property and equipment | 706,695 | 627,190 |
Office equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of property and equipment | $ 26,602,951 | $ 12,721,964 |
PROPERTY AND EQUIPMENT, NET (69
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Total | $ 50,907,175 | $ 28,934,491 | $ 18,156,263 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Total cost of intangible assets | $ 59,798,502 | $ 48,488,445 | |
Less: accumulated amortization | (18,087,362) | (9,780,439) | |
Less: impairment loss | (357,762) | 0 | $ 0 |
Add: foreign exchange difference | 2,151,402 | (741,198) | |
Intangible assets, net | 43,504,780 | 37,966,808 | |
Trade name and domain names | |||
Total cost of intangible assets | 25,049,779 | 23,873,013 | |
Copyrights | |||
Total cost of intangible assets | 1,839,680 | 1,648,532 | |
Technology | |||
Total cost of intangible assets | 6,247,451 | 3,179,688 | |
Partnership agreement | |||
Total cost of intangible assets | 1,437,974 | 349,783 | |
Non-compete agreements | |||
Total cost of intangible assets | 1,036,688 | 306,268 | |
License | |||
Total cost of intangible assets | 5,347,836 | 297,861 | |
Customer relationship | |||
Total cost of intangible assets | 4,136,337 | 4,130,543 | |
Concession | |||
Total cost of intangible assets | 404,523 | 404,523 | |
Student And User Base [Member] | |||
Total cost of intangible assets | 10,361,994 | 10,361,994 | |
Teaching Materials [Member] | |||
Total cost of intangible assets | 516,544 | 516,544 | |
School cooperation agreements | |||
Total cost of intangible assets | $ 3,419,696 | $ 3,419,696 |
INTANGIBLE ASSETS, NET (Detai71
INTANGIBLE ASSETS, NET (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Amortization of Intangible Assets | $ 8,306,923 | $ 4,627,306 | $ 1,026,761 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 9,330,694 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 9,140,874 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 8,315,702 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 5,440,963 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 3,873,251 | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 357,762 | $ 0 | $ 0 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Goodwill [Line Items] | ||
Beginning balance | $ 268,686,951 | $ 88,546,783 |
Addition (Note 3) | 12,621,874 | 184,580,094 |
Impairment | (1,524,266) | (1,524,266) |
Exchange difference | 11,597,570 | (4,439,926) |
Goodwill, net | $ 291,382,129 | $ 267,162,685 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | Oct. 31, 2014 | |||
Schedule of Investments [Line Items] | ||||||
Fair value option investments | [1] | $ 7,786,000 | $ 10,158,514 | |||
Available-for-sale investments | [1] | 322,777,769 | 235,675,844 | |||
Held-to-maturity investments | [2] | 75,219,750 | 0 | |||
Total | 597,605,775 | 347,732,444 | ||||
Minerva Project Inc [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Cost method investments | 18,000,003 | [3] | 18,000,003 | [3] | $ 18,000,003 | |
Knewton Inc [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Cost method investments | [4] | 11,582,167 | 11,582,167 | |||
Other Cost Method Investments [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Cost method investments | [5] | 19,078,782 | 9,163,228 | |||
Phoenix E-Learning Corporation [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investments | [6] | 24,660,475 | 24,157,270 | |||
Beijing Haoweilai Gongying Investment Center LLP [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investments | [7] | 4,374,725 | 3,758,732 | |||
Shenzhen Youban Technology Company Limited [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investments | [8] | 21,418,825 | 5,783,156 | |||
Shanghai Xiaoxin Information Technology Company Limited [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investments | [9] | 10,397,823 | 3,400,968 | |||
GSV Acceleration Fund I, L.P. [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investments | [10] | 8,329,070 | 4,001,335 | |||
Hangzhou Feizhu Technology Company Limited [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investments | [11] | 11,163,616 | 0 | |||
Other Equity Method Investments [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investments | [12] | $ 62,816,770 | $ 22,051,227 | |||
[1] | Please refer to Note 14(a) fair value option investments and available-for-sale investments for details. | |||||
[2] | The Group purchased wealth management products from financial institutions in China and classified them 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 was two years and recorded at amortized cost. The Group estimated that their fair value approximate their carrying amount. | |||||
[3] | In October 2014, the Group acquired minority equity interest in Minerva Project, Inc., a Delaware corporation that is committed to providing an exceptional and accessible liberal arts and sciences education for future leaders and innovators across all disciplines. The total consideration was $18,000,003. The Group applied cost method to account for the investment due to lack of ability to exercise significant influence and reviewed the investment for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. As of February 28, 2018, no impairment loss has been recorded in regard to the investment. | |||||
[4] | In January 2016, the Group acquired minority equity interest in Knewton, Inc., a company in adaptive learning incorporated in Delaware with total cash consideration of $5,000,001. In March 2016, the Group acquired additional minority equity interest in Knewton, Inc. with total cash consideration of $6,582,166. The Group applied cost method to account for the investment due to lack of ability to exercise significant influence and reviewed the investment for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. As of February 28, 2018, no impairment loss was recorded in regard to the investment. | |||||
[5] | The Group holds equity interests in several third-party private companies through investments in their common shares or in-substance common shares where these equity interests are generally less than 10%. The Group accounts for these investments under the cost method as the Group has no ability to exercise significant influence over the investees. The Group recorded $nil, $1,269,611 and $nil impairment loss during the fiscal years ended February 29, 2016, February 28, 2017 and February 28, 2018, respectively. | |||||
[6] | In December 2015, the Group invested $30,000,000 to acquire 32% equity interest of Phoenix E-Learning Corporation, which operates zxxk.com, an online educational platform serving the public school system in China. The Group has the ability to exercise significant influence but does not have control over the investee and used the equity method to account for the investment. The Group accounts for its investment in Phoenix E-Learning Corporation on a one quarter lag basis as the financial statements of this investee cannot be made available within a reasonable time. | |||||
[7] | In May 2016, the Group and two third-parties which are related parties (“third party group”), established Gongying Fund, a limited liability partnership focusing on investing in private education companies. The Group and the third party group owns 20% and 80% equity interest of Gongying Fund, respectively. They are co-general partners of Gongying Fund. Gongying Fund’s scale is RMB259.0 million (equivalent to $37.7 million) that the Group and the third party group have committed to invest RMB51.6 million (equivalent to $7.5 million) and RMB207.4 million (equivalent to $30.2 million), respectively. As of February 28, 2018, both parties have fulfilled half of their respective capital commitment to Gongying Fund. The Group and the third party committed to invest the remaining portion upon the capital call of Gongying Fund. All investment decisions made by Gongying Fund have to be approved by both parties. The Group has the ability to exercise significant influence but does not have control over Gongying Fund due to the other partner’s substantive participating rights, and thereby used the equity method to account for the investment. In fiscal year 2017, Gongying Fund invested RMB70 million (equivalent to $10.2 million) to purchase minority equity interests of two privately held education companies. | |||||
[8] | In September 2015, the Group acquired 20% equity interest in Shenzhen Youban, which is mainly engaged in the development of online early education mobile application. In July 2017, the Group acquired additional equity interest and as a result, the Group held 28% equity interest as of February 28, 2018. The Group has the ability to exercise significant influence but does not have control over the investee and used the equity method to account for the investment. | |||||
[9] | In November 2016, the Group acquired 25% equity interest in Shanghai Xiaoxin, which is mainly engaged in the development of communication tools between teachers and students. In October 2017, the Group acquired additional 14.7% equity interest in Shanghai Xiaoxin. The Group has the ability to exercise significant influence but does not have control over the investee and used the equity method to account for the investment. | |||||
[10] | For the years ended February 28, 2017 and 2018, the Group paid $3.4 million and $7.7 million capital commitment to GSV Fund, respectively. The Group committed to invest the remaining portion upon the capital call of GSV Fund. The Group is one of the limited partners and has the ability to exercise significant influence but does not have control over the investee and used the equity method to account for the investment. | |||||
[11] | In November 2017, the Group acquired 32.8% equity interest in Hangzhou Feizhu, which is mainly engaged in online English learning. The Group has the ability to exercise significant influence but does not have control over the investee and used the equity method to account for the investment. | |||||
[12] | The Group holds 4.8% to 39.7% equity interests in several third-party private companies through investments in their common shares or in-substance common shares. Majority of the long-term investments are engaged in online education services. The Group accounts for these investments under the equity method because the Group has the ability to exercise significant influence but does not have control over the investees. The Group recorded $5,622,221, $757,591 and $409,229 impairment loss for its equity method investments during the fiscal years ended February 29, 2016, February 28, 2017 and February 28, 2018, respectively. |
LONG-TERM INVESTMENTS (Detail74
LONG-TERM INVESTMENTS (Details) (Parenthetical) ¥ in Millions | 12 Months Ended | ||||||||||||||||
Feb. 28, 2018USD ($) | Feb. 28, 2017USD ($) | Feb. 28, 2017CNY (¥) | Feb. 29, 2016USD ($) | Nov. 30, 2017 | Oct. 31, 2017 | Nov. 30, 2016 | May 31, 2016USD ($) | May 31, 2016CNY (¥) | Mar. 31, 2016USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015 | Oct. 31, 2014USD ($) | ||||
Schedule of Investments [Line Items] | |||||||||||||||||
Other than Temporary Impairment Losses, Investments, Total | $ 2,212,836 | $ 8,074,891 | $ 7,503,944 | ||||||||||||||
Equity Method Investment Aggregate Amount Of Capital Subscribed | $ 37,700,000 | ¥ 259 | |||||||||||||||
Payments to Acquire Long-term Investments | 196,558,758 | 65,340,812 | 118,590,246 | ||||||||||||||
Unrelated investors [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment Aggregate Amount Of Capital Subscribed | 30,200,000 | 207.4 | |||||||||||||||
Phoenix E-Learning Corporation [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 32.00% | ||||||||||||||||
Equity Method Investment Aggregate Amount Of Capital Subscribed | $ 30,000,000 | ||||||||||||||||
Knewton Inc [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Cost Method Investments | $ 6,582,166 | $ 5,000,001 | |||||||||||||||
Gongying Fund [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment Aggregate Amount Of Capital Subscribed | $ 51,600,000 | ¥ 7.5 | |||||||||||||||
Payments to Acquire Long-term Investments | 10,200,000 | ¥ 70 | |||||||||||||||
Gongying Fund [Member] | Unrelated investors [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment Ownership Percentage Hold By Third Party | 80.00% | 80.00% | |||||||||||||||
Gongying Fund [Member] | Tal Education Group [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||||||||||
Shanghai Xiaoxin [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 14.70% | 25.00% | |||||||||||||||
Gsv Fund [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Payments to Acquire Long-term Investments | 7,700,000 | 3,400,000 | |||||||||||||||
Hangzhou Feizhu Technology Company Limited [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 32.80% | ||||||||||||||||
Minerva Project Inc [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Cost Method Investments | 18,000,003 | [1] | 18,000,003 | [1] | $ 18,000,003 | ||||||||||||
Other Equity Method Investments [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Other than Temporary Impairment Losses, Investments, Total | $ 409,229 | 757,591 | 5,622,221 | ||||||||||||||
Other Equity Method Investments [Member] | Minimum [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment Ownership Percentage Hold By Third Party | 4.80% | ||||||||||||||||
Other Equity Method Investments [Member] | Maximum [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment Ownership Percentage Hold By Third Party | 39.70% | ||||||||||||||||
Shenzhen Youban Technology Company Limited [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 28.00% | 20.00% | |||||||||||||||
Other Cost Method Investments [Member] | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 10.00% | ||||||||||||||||
Cost Method Investments | [2] | $ 19,078,782 | 9,163,228 | ||||||||||||||
Other than Temporary Impairment Losses, Investments, Total | $ 0 | $ 1,269,611 | $ 0 | ||||||||||||||
[1] | In October 2014, the Group acquired minority equity interest in Minerva Project, Inc., a Delaware corporation that is committed to providing an exceptional and accessible liberal arts and sciences education for future leaders and innovators across all disciplines. The total consideration was $18,000,003. The Group applied cost method to account for the investment due to lack of ability to exercise significant influence and reviewed the investment for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. As of February 28, 2018, no impairment loss has been recorded in regard to the investment. | ||||||||||||||||
[2] | The Group holds equity interests in several third-party private companies through investments in their common shares or in-substance common shares where these equity interests are generally less than 10%. The Group accounts for these investments under the cost method as the Group has no ability to exercise significant influence over the investees. The Group recorded $nil, $1,269,611 and $nil impairment loss during the fiscal years ended February 29, 2016, February 28, 2017 and February 28, 2018, respectively. |
LONG-TERM PREPAYMENTS AND OTH75
LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | |
Long Term Prepayments Disclosures [Line Items] | |||
Long-term prepayments | [1] | $ 96,641,852 | $ 59,293,208 |
Loan to employees | [2] | 11,022,250 | 10,999,053 |
Loan receivable | [3] | 20,875,534 | 18,027,010 |
Other non-current assets | [4] | 9,650,217 | 7,788,646 |
Prepaid Expense and Other Assets, Noncurrent | $ 138,189,853 | $ 96,107,917 | |
[1] | As of February 28, 2017 and February 28, 2018, the Group made prepayments to acquire equity interests in several third-party companies. | ||
[2] | Please see Note 5(3) for details of loan to employees. | ||
[3] | In October 2016, the Group provided a long-term loan to a third party. The principal amount is $17,591,858 (equivalent to RMB120,794,490) with the interest rate of 7.98% per annum. Interest income of $435,152 and $1,786,645 was accrued for the years ended February 28, 2017 and February 28, 2018, respectively. The loan principal and all interests will be received upon maturity on October 16, 2022. The third party pledged its equity interest in a privately-held education company to the Group to guarantee the loan principal and interests. | ||
[4] | As of February 28, 2017 and February 28, 2018, other non-current assets were primarily made up of prepayment for property and equipment and the unamortized debt issuance costs to be amortized beyond one year associated with the facilities under the long-term debt as disclosed in Note 13. |
LONG-TERM PREPAYMENTS AND OTH76
LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS (Details) (Parenthetical) | 12 Months Ended | |||
Feb. 28, 2018USD ($) | Feb. 28, 2017USD ($) | Feb. 29, 2016USD ($) | Feb. 28, 2018CNY (¥) | |
Long Term Prepayments Disclosures [Line Items] | ||||
Loans and Leases Receivable, Net Amount | $ 17,591,858 | ¥ 120,794,490 | ||
Interest Receivable, Noncurrent | $ 1,786,645 | $ 435,152 | ||
Long Term Loan Receivable, Interest Percentage Rate | 7.98% | 7.98% | ||
Asset Impairment Charges, Total | $ 260,244 | $ 0 | $ 317,523 |
ACCRUED EXPENSES AND OTHER CU77
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 |
Accrued Expenses And Other Current Liabilities [Line Items] | ||
Accrued employee payroll and welfare benefits | $ 135,366,042 | $ 79,867,924 |
Amounts due to employees for stock sales proceeds | 24,140,789 | 0 |
Other taxes payable | 22,868,616 | 13,769,327 |
Accrued employee annual bonus | 9,969,633 | 5,956,144 |
Accrued operating expenses | 8,458,150 | 1,564,149 |
Payable for investments and acquisitions | 5,111,313 | 1,807,584 |
Professional service fee payable | 3,280,294 | 230,098 |
Payable for acquisitions of intangible assets | 1,766,650 | 0 |
Interest payable | 1,451,264 | 2,999,801 |
Examination enrollment fees collected on behalf of contests organizers | 828,385 | 755,054 |
Others | 15,881,167 | 9,880,209 |
Total | $ 229,122,303 | $ 116,830,290 |
BOND PAYABLE (Details Textual)
BOND PAYABLE (Details Textual) | 1 Months Ended | 12 Months Ended | ||
May 21, 2014USD ($)shares | Feb. 28, 2018USD ($)$ / sharesshares | Feb. 28, 2017USD ($)shares | Feb. 29, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Long-term Debt | $ 0 | $ 238,000,000 | $ 0 | |
Debt Related Commitment Fees and Debt Issuance Costs | $ 5,277,058 | |||
Payments for Derivative Instrument, Financing Activities | 22,885,000 | |||
Interest Expense | 16,640,329 | 13,144,561 | $ 7,499,323 | |
Call Option [Member] | Long [Member] | ||||
Debt Instrument [Line Items] | ||||
Option Indexed to Issuer's Equity, Indexed Shares | shares | 52,712,642 | |||
Payments for Derivative Instrument, Financing Activities | $ 22,885,000 | |||
American Depository Shares [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Conversion, Converted Instrument, Amount | $ 214,424,000 | $ 4,501,000 | ||
Debt Conversion, Converted Instrument, Shares Issued | shares | 49,142,340 | 1,027,386 | ||
American Depository Shares [Member] | Call Option [Member] | Long [Member] | ||||
Debt Instrument [Line Items] | ||||
Adjusted Cap Price | $ / shares | $ 5.87 | |||
Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 230,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | |||
Proceeds from Issuance of Long-term Debt | $ 224,722,942 | |||
Debt Instrument Repurchase Price As Percentage To The Principal Amount | 100.00% | |||
Debt Instrument, Fair Value Disclosure | $ 96,054,582 | |||
Interest Expense | $ 2,464,804 | $ 7,539,778 | ||
Notes [Member] | American Depository Shares [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Principal Amount Denomination For Conversion Into Stock | $ 1,000 | |||
Debt Instrument, Convertible, Conversion Ratio | 229.1856 | |||
Adjusted Conversion Price | $ / shares | $ 4.36 |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | |
Long-term Debt | $ 225,000,000 | $ 225,000,000 | |
Commiment Fee, Percentage | 0.75% | ||
Debt Issuance Costs, Net | $ 12,000,000 | ||
Term and Revolving Facilities Agreement [Member] | |||
Debt Instrument, Term | 3 years | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | ||
Debt Instrument, Interest Rate, Basis for Effective Rate | 250 basis points over LIBOR. | ||
Number of Interest Rate Derivatives Held | 3 | ||
Term and Revolving Facilities Agreement [Member] | Term Loan [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 225,000,000 | ||
Long-term Debt | $ 225,000,000 | ||
Term and Revolving Facilities Agreement [Member] | Revolving Loan [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | ||
Term and Revolving Facilities Agreement [Member] | Interest Rate Swap One [Member] | |||
Derivative, Notional Amount | $ 30,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.46% | ||
Term and Revolving Facilities Agreement [Member] | Interest Rate Swap Two [Member] | |||
Derivative, Notional Amount | $ 30,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.10% | ||
Term and Revolving Facilities Agreement [Member] | Interest Rate Swap Three [Member] | |||
Derivative, Notional Amount | $ 50,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.14% |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value option investments | $ 7,786,000 | $ 10,158,514 | $ 10,523,000 | $ 9,282,000 | |
Long-term investment in a third-party technology company [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value option investments | [1] | 7,786,000 | 7,096,323 | ||
Long-term investment in a third-party online education company [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value option investments | [2] | $ 0 | $ 3,062,191 | ||
[1] | In August 2014, the Group acquired 4.76% equity interest in a third-party technology company with a total cash consideration of $5,000,000. The equity interest was acquired through the Group's purchase of its convertible redeemable preferred shares. The fair value change of the investment was an increase of $nil and $274,711 in fiscal years 2017 and 2018, respectively. | ||||
[2] | In February 2013, the Group acquired 16.85% equity interest in a third-party online education company with a total cash consideration of $3,080,000. The equity interest was acquired through the Group's purchase of its convertible redeemable preferred shares. The Group disposed all its equity interest in this online education company to a third party and recognized a gain of $5,846,737 in fiscal year 2018. |
FAIR VALUE (Details 1)
FAIR VALUE (Details 1) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Balance at the beginning of the period | $ 10,158,514 | $ 10,523,000 | $ 9,282,000 |
Changes in fair value | 6,250,878 | 1,265,852 | |
Disposal | (9,038,358) | ||
Foreign exchange difference | 414,966 | (364,486) | (24,852) |
Balance at the end of the period | $ 7,786,000 | $ 10,158,514 | $ 10,523,000 |
FAIR VALUE (Details 2)
FAIR VALUE (Details 2) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | Oct. 31, 2014 | Jan. 31, 2014 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Available-for-sales securities investments | $ 322,777,769 | $ 235,675,844 | $ 188,790,669 | |||||
BabyTree Inc. [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Available-for-sales securities investments | 121,624,368 | [1] | 98,216,000 | [1] | $ 23,475,000 | |||
Guokr Corporation Limited [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Available-for-sales securities investments | 15,745,000 | [2] | 15,745,000 | [2] | $ 15,000,000 | |||
Changing [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Available-for-sales securities investments | [3] | 93,571,000 | 65,623,000 | |||||
Shanghai Zhengda Ximalaya Technology Company Limited [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Available-for-sales securities investments | [4] | 15,994,153 | 9,466,249 | |||||
Know Box Limited [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Available-for-sales securities investments | [5] | 20,627,000 | 4,660,307 | |||||
Other Third-Party Companies [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Available-for-sales securities investments | [6] | $ 55,216,248 | $ 41,965,288 | |||||
[1] | In January 2014, the Group acquired minority equity interests in BabyTree Inc. by purchasing its Series E convertible redeemable preferred shares with a total cash consideration of $23,475,000. BabyTree Inc. is an online parenting community and an online retailer of maternity and kids products. The fair value change of the investment was an increase of $72,799,000 and $26,192,398 in fiscal years 2017 and 2018, respectively. In fiscal year 2018, the Group sold part of the equity interest in Babytree Inc. to Gongying Fund and recognized $3,043,589 disposal gain. | |||||||
[2] | In October 2014, the Group acquired minority equity interests in Guokr Corporation Limited by purchasing its Series C convertible redeemable preferred shares with a total cash consideration of $15,000,000. Guokr Corporation Limited was incorporated in the Cayman Islands and is an open and diverse interest community that provides interesting science and technology content. The fair value change of the investment was both $nil in fiscal years 2017 and 2018, respectively. | |||||||
[3] | In April and August 2015, the Group acquired 30% equity interest in aggregate in Changing, which operates a customer-to-customer mobile tutoring platform in China. The equity interest was acquired through the Group's purchase of its Series B+ and Series C convertible redeemable preferred shares. In fiscal year 2017, the Group entered into agreements with Changing and its founders to a) Purchase a portion of ordinary shares from one of Changing’s founders with cash consideration of $4,825,000. Immediately after, Changing replaced these ordinary shares held by the Group with Series B+ convertible redeemable preferred shares at no additional costs. b) Surrender a portion of Series C convertible redeemable preferred shares to Changing in exchange for the Guangzhou Tutoring, which was previously disposed in fiscal year 2016. Please refer to Note 3 and Note 15 for details. c) Purchase a portion of Series C convertible redeemable preferred shares of Changing with total cash consideration of $17,861,744, of which $12,171,744 was paid in fiscal year 2017. The above three transactions were discrete and separately accounted for. In fiscal year 2018, the Group acquired minority equity interests in Changing by purchasing its Series D convertible redeemable preferred shares with a total cash consideration of $15,000,000. An increase of change in fair value of the investment in Changing amounted to $1,400,256 and $12,948,000 in fiscal years 2017 and 2018, respectively. | |||||||
[4] | In August 2016, the Group acquired minority equity interests in Ximalaya, an online Frequency Modulation (“FM”) radio platform, by purchasing its Series C+ convertible redeemable preferred shares with a total cash consideration of $9,466,249. The fair value change of the investment was an increase of $nil and $5,722,345 in fiscal years 2017 and 2018, respectively. | |||||||
[5] | In July 2015, the Group acquired minority equity interests in Know Box Limited, an online platform for the interaction between teachers and students, by purchasing its Series A convertible redeemable preferred shares with a total cash consideration of $4,660,307. During the fiscal year 2018, the Group acquired additional minority equity interests in Know Box Limited by purchasing its Series B and C convertible redeemable preferred shares with a total cash consideration of $10,197,365. The fair value change of the investment was an increase of $nil and $5,372,745 in fiscal years 2017 and 2018, respectively. | |||||||
[6] | The Group acquired minority equity interest in several other third-party private companies, the majority of which are engaged in online platform or online education services. The Group holds minority equity interests of these companies through purchasing their convertible redeemable preferred shares. The Group accounted for these investments as available-for-sale investments. There was an increase of $743,478 and $1,321,739 change in fair value of those investments in fiscal years 2017 and 2018, respectively. The Group recorded $1,564,200, $6,047,689 and $1,803,607 impairment loss during the years ended February 29, 2016, February 28, 2017 and February 28, 2018, respectively. |
FAIR VALUE (Details 3)
FAIR VALUE (Details 3) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Balance at the beginning of the period | $ 235,675,844 | $ 188,790,669 | |
Purchase | 36,044,236 | 40,412,690 | |
Disposal | (7,476,733) | (50,000,000) | [1] |
Transfer out upon gaining control | (10,515,391) | ||
Transfer out due to change of accounting method | (1,165,077) | ||
Changes in fair value | 51,557,227 | 74,942,734 | |
Impairment loss | (1,803,607) | (6,047,689) | |
Foreign exchange difference | 8,780,802 | (742,092) | |
Balance at the end of the period | $ 322,777,769 | $ 235,675,844 | |
[1] | In April and August 2015, the Group acquired 30% equity interest in aggregate in Changing, which operates a customer-to-customer mobile tutoring platform in China. The equity interest was acquired through the Group's purchase of its Series B+ and Series C convertible redeemable preferred shares. In fiscal year 2017, the Group entered into agreements with Changing and its founders to a) Purchase a portion of ordinary shares from one of Changing’s founders with cash consideration of $4,825,000. Immediately after, Changing replaced these ordinary shares held by the Group with Series B+ convertible redeemable preferred shares at no additional costs. b) Surrender a portion of Series C convertible redeemable preferred shares to Changing in exchange for the Guangzhou Tutoring, which was previously disposed in fiscal year 2016. Please refer to Note 3 and Note 15 for details. c) Purchase a portion of Series C convertible redeemable preferred shares of Changing with total cash consideration of $17,861,744, of which $12,171,744 was paid in fiscal year 2017. The above three transactions were discrete and separately accounted for. In fiscal year 2018, the Group acquired minority equity interests in Changing by purchasing its Series D convertible redeemable preferred shares with a total cash consideration of $15,000,000. An increase of change in fair value of the investment in Changing amounted to $1,400,256 and $12,948,000 in fiscal years 2017 and 2018, respectively. |
FAIR VALUE (Details 4)
FAIR VALUE (Details 4) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 |
Short-term investments | ||||
Variable-rate financial instrument | $ 787,390,754 | $ 229,456,397 | ||
Long-term investments | ||||
Fair value option investments | 7,786,000 | 10,158,514 | $ 10,523,000 | $ 9,282,000 |
Available-for-sale investments | 322,777,769 | 235,675,844 | $ 188,790,669 | |
Fair Value, Measurements, Recurring [Member] | ||||
Short-term investments | ||||
Variable-rate financial instrument | 18,223,768 | 57,753,200 | ||
Trading Securities | 50,625,616 | |||
Long-term investments | ||||
Fair value option investments | 7,786,000 | 10,158,514 | ||
Available-for-sale investments | 322,777,769 | 235,675,844 | ||
Total | 399,413,153 | 303,587,558 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||||
Short-term investments | ||||
Variable-rate financial instrument | 0 | 0 | ||
Trading Securities | 50,625,616 | |||
Long-term investments | ||||
Fair value option investments | 0 | 0 | ||
Available-for-sale investments | 0 | 0 | ||
Total | 50,625,616 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Short-term investments | ||||
Variable-rate financial instrument | 18,223,768 | 57,753,200 | ||
Trading Securities | 0 | |||
Long-term investments | ||||
Fair value option investments | 0 | 0 | ||
Available-for-sale investments | 0 | 0 | ||
Total | 18,223,768 | 57,753,200 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Short-term investments | ||||
Variable-rate financial instrument | 0 | 0 | ||
Trading Securities | 0 | |||
Long-term investments | ||||
Fair value option investments | 7,786,000 | 10,158,514 | ||
Available-for-sale investments | 322,777,769 | 235,675,844 | ||
Total | $ 330,563,769 | $ 245,834,358 |
FAIR VALUE (Details Textual)
FAIR VALUE (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2014 | Feb. 28, 2013 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | Aug. 31, 2016 | Aug. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2014 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Payments to Acquire Long-term Investments | $ 196,558,758 | $ 65,340,812 | $ 118,590,246 | |||||||||
Fair Value Of Investment | 6,250,878 | 1,265,852 | ||||||||||
Available-for-sale Securities, Noncurrent, Total | 322,777,769 | 235,675,844 | 188,790,669 | |||||||||
Gain (Loss) on Sale of Investments, Total | 9,025,511 | 0 | 211,818 | |||||||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total | 1,803,607 | 6,047,689 | ||||||||||
Goodwill and Intangible Asset Impairment | 357,762 | 0 | 0 | |||||||||
Third Party Technology Company [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Long Term Investments Ownership Interest Acquired | 4.76% | |||||||||||
Payments to Acquire Long-term Investments | $ 5,000,000 | |||||||||||
Fair Value Of Investment | 274,711 | 0 | ||||||||||
Baby Tree Inc [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Available-for-sale Securities, Noncurrent, Total | 121,624,368 | [1] | 98,216,000 | [1] | $ 23,475,000 | |||||||
Available For Sale Securities Changes In Fair Value Of Investments | 26,192,398 | 72,799,000 | ||||||||||
Gain (Loss) on Sale of Investments, Total | [2] | 3,043,589 | 0 | 0 | ||||||||
Guokr Corporation Limited [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Available-for-sale Securities, Noncurrent, Total | 15,745,000 | [3] | 15,745,000 | [3] | $ 15,000,000 | |||||||
Available For Sale Securities Changes In Fair Value Of Investments | 0 | 0 | ||||||||||
Third Party Private Companies [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Available For Sale Securities Changes In Fair Value Of Investments | 1,321,739 | 743,478 | ||||||||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total | 1,803,607 | 6,047,689 | $ 1,564,200 | |||||||||
A Third-Party Online Education Company [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Long Term Investments Ownership Interest Acquired | 16.85% | |||||||||||
Payments to Acquire Long-term Investments | $ 3,080,000 | |||||||||||
Gain (Loss) on Sale of Investments, Total | 5,846,737 | |||||||||||
Changing Education Inc. [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Available-for-sale Securities, Noncurrent, Total | [4] | 93,571,000 | 65,623,000 | |||||||||
Available For Sale Method Investment Ownership Percentage | 30.00% | |||||||||||
Available For Sale Securities Changes In Fair Value Of Investments | 12,948,000 | 1,400,256 | ||||||||||
Changing Education Inc. [Member] | Series D Preferred Stock [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Available-for-sale Securities, Noncurrent, Total | 15,000,000 | |||||||||||
Changing Education Inc. [Member] | Series C Preferred Stock [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Payments to Acquire Long-term Investments | 12,171,744 | |||||||||||
Available-for-sale Securities, Noncurrent, Total | 17,861,744 | |||||||||||
Changing Education Inc. [Member] | Ordinary Shares [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Available-for-sale Securities, Noncurrent, Total | 4,825,000 | |||||||||||
Ximalaya [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Available For Sale Securities Changes In Fair Value Of Investments | 5,722,345 | 0 | ||||||||||
Ximalaya [Member] | Series C Preferred Stock [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Available-for-sale Securities, Noncurrent, Total | $ 9,466,249 | |||||||||||
Know Box Limited [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Available-for-sale Securities, Noncurrent, Total | [5] | 20,627,000 | 4,660,307 | |||||||||
Available For Sale Securities Changes In Fair Value Of Investments | 5,372,745 | $ 0 | ||||||||||
Know Box Limited [Member] | Series A Preferred Stock [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Payments to Acquire Long-term Investments | 4,660,307 | |||||||||||
Know Box Limited [Member] | Series B And C Preferred Stock [Member] | ||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||
Payments to Acquire Long-term Investments | $ 10,197,365 | |||||||||||
[1] | In January 2014, the Group acquired minority equity interests in BabyTree Inc. by purchasing its Series E convertible redeemable preferred shares with a total cash consideration of $23,475,000. BabyTree Inc. is an online parenting community and an online retailer of maternity and kids products. The fair value change of the investment was an increase of $72,799,000 and $26,192,398 in fiscal years 2017 and 2018, respectively. In fiscal year 2018, the Group sold part of the equity interest in Babytree Inc. to Gongying Fund and recognized $3,043,589 disposal gain. | |||||||||||
[2] | As disclosed in Note 14(a)(3), the Group sold part of equity interest in Babytree Inc. to Gongying Fund and recognized $3,043,589 disposal gain. | |||||||||||
[3] | In October 2014, the Group acquired minority equity interests in Guokr Corporation Limited by purchasing its Series C convertible redeemable preferred shares with a total cash consideration of $15,000,000. Guokr Corporation Limited was incorporated in the Cayman Islands and is an open and diverse interest community that provides interesting science and technology content. The fair value change of the investment was both $nil in fiscal years 2017 and 2018, respectively. | |||||||||||
[4] | In April and August 2015, the Group acquired 30% equity interest in aggregate in Changing, which operates a customer-to-customer mobile tutoring platform in China. The equity interest was acquired through the Group's purchase of its Series B+ and Series C convertible redeemable preferred shares. In fiscal year 2017, the Group entered into agreements with Changing and its founders to a) Purchase a portion of ordinary shares from one of Changing’s founders with cash consideration of $4,825,000. Immediately after, Changing replaced these ordinary shares held by the Group with Series B+ convertible redeemable preferred shares at no additional costs. b) Surrender a portion of Series C convertible redeemable preferred shares to Changing in exchange for the Guangzhou Tutoring, which was previously disposed in fiscal year 2016. Please refer to Note 3 and Note 15 for details. c) Purchase a portion of Series C convertible redeemable preferred shares of Changing with total cash consideration of $17,861,744, of which $12,171,744 was paid in fiscal year 2017. The above three transactions were discrete and separately accounted for. In fiscal year 2018, the Group acquired minority equity interests in Changing by purchasing its Series D convertible redeemable preferred shares with a total cash consideration of $15,000,000. An increase of change in fair value of the investment in Changing amounted to $1,400,256 and $12,948,000 in fiscal years 2017 and 2018, respectively. | |||||||||||
[5] | In July 2015, the Group acquired minority equity interests in Know Box Limited, an online platform for the interaction between teachers and students, by purchasing its Series A convertible redeemable preferred shares with a total cash consideration of $4,660,307. During the fiscal year 2018, the Group acquired additional minority equity interests in Know Box Limited by purchasing its Series B and C convertible redeemable preferred shares with a total cash consideration of $10,197,365. The fair value change of the investment was an increase of $nil and $5,372,745 in fiscal years 2017 and 2018, respectively. |
GAIN FROM DISPOSAL OF COMPONE86
GAIN FROM DISPOSAL OF COMPONENTS (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2015 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | Apr. 30, 2015 | |
Gain From Disposal of Components [Line Items] | |||||
Available-for-sale Securities, Noncurrent, Total | $ 322,777,769 | $ 235,675,844 | $ 188,790,669 | ||
Gain (Loss) on Disposition of Business | $ 0 | $ 0 | 50,377,126 | ||
Guangzhou After School One-On-One Tutoring Business Component [Member] | |||||
Gain From Disposal of Components [Line Items] | |||||
Gain (Loss) on Disposition of Business | 50,000,000 | ||||
Other Business Component [Member] | |||||
Gain From Disposal of Components [Line Items] | |||||
Gain (Loss) on Disposition of Business | $ 377,126 | ||||
Changing Education Inc [Member] | |||||
Gain From Disposal of Components [Line Items] | |||||
Available For Sale Method Investment Ownership Percentage | 30.00% | ||||
Changing Education Inc [Member] | Series B Redeemable Preferred Stock [Member] | |||||
Gain From Disposal of Components [Line Items] | |||||
Available-for-sale Securities, Noncurrent, Total | $ 6,315,790 | ||||
Changing Education Inc [Member] | Series C Redeemable Preferred Stock [Member] | |||||
Gain From Disposal of Components [Line Items] | |||||
Share Price | $ 1.6922 | ||||
Payments to Acquire Available-for-sale Securities, Equity | $ 30,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Deferred | |||
Total | $ 44,653,725 | $ 34,065,689 | $ 33,482,744 |
PRC | |||
Current | |||
- PRC income tax expenses | 48,958,623 | 37,720,637 | 34,474,418 |
Deferred | |||
- PRC income tax expenses | (4,304,898) | (3,654,948) | (991,674) |
Total | $ 44,653,725 | $ 34,065,689 | $ 33,482,744 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 |
Non-current deferred tax assets: | ||
Prepaid rental | $ 2,386,560 | $ 1,694,073 |
Property and equipment | 657,593 | 591,917 |
Impairment loss on long-term investments | 553,229 | 2,098,309 |
Others | 66,057 | 33,129 |
Tax losses carry-forward | 38,248,065 | 27,830,452 |
Less: valuation allowance | (24,550,491) | (16,059,579) |
Non-current deferred tax assets, net | 17,361,013 | 16,188,301 |
Non-current deferred tax liabilities: | ||
Accrued ADR income | 0 | 34,500 |
Intangible assets | 5,342,969 | 5,959,102 |
Property and equipment | 274,524 | 852,719 |
Long-term investments | 14,421,547 | 6,339,565 |
Non-current deferred tax liabilities | $ 20,039,040 | $ 13,185,886 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Reconciliation of the PRC statutory tax rate to the effective tax rate | |||
Income before provision for income tax | $ 246,993,826 | $ 154,580,964 | $ 136,902,200 |
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% |
Income tax at statutory income tax rate | $ 61,748,457 | $ 38,645,241 | $ 34,225,550 |
Effect of non-deductible and super deduction expenses | (2,244,191) | 1,853,002 | 1,331,053 |
Effect of income tax exemptions and preferential tax rates | (37,390,108) | (26,256,983) | (12,830,838) |
Effect of income tax rate difference in other jurisdictions | 14,949,433 | 16,575,113 | 10,159,093 |
Change in valuation allowance | 7,590,134 | 3,249,316 | 597,886 |
Provision for income tax | $ 44,653,725 | $ 34,065,689 | $ 33,482,744 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Increase in income tax expense and earnings per share amounts, If Xueersi Education, Yidu Huida, TAL Beijing, Beijing Xintang Sichuang and Yinghe Youshi and Yizhen Xuesi were not in a tax holiday period | |||
Increase in income tax expenses | $ 37,390,108 | $ 26,256,983 | $ 12,830,838 |
Net income per common share-basic (in dollars per share) | $ 0.9 | $ 0.56 | $ 0.56 |
Net income per common share-diluted (in dollars per share) | $ 0.82 | $ 0.52 | $ 0.53 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | |||||||
Feb. 28, 2018CNY (¥) | Dec. 31, 2017 | Feb. 28, 2017USD ($) | Dec. 31, 2016 | Feb. 29, 2016 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 28, 2018USD ($) | |
Income Tax Disclosure [Line Items] | ||||||||||||
Operating Loss Carryforwards | $ 159,878,732 | |||||||||||
Deferred Tax Assets, Valuation Allowance | 24,550,491 | |||||||||||
Income Tax Preferential Tax Rate | 15.00% | |||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | |||||||||
Withholding Tax Rate On Dividend Distributed By Foreign Investment Entities | 10.00% | |||||||||||
Undistributed Earnings Of Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | $ 556,236,815 | $ 925,484,106 | ||||||||||
Income Tax Statute Of Limitations Special Circumstance Minimum Underpayment Of Tax Liability | ¥ | ¥ 100,000 | |||||||||||
CHINA | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 10.00% | |||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | |||||||||||
Beijing Xueersi Education Technology Co Ltd [Member] | High And New Technology Enterprises [Member] | CHINA | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 15.00% | |||||||||||
TAL Beijing [Member] | High And New Technology Enterprises [Member] | CHINA | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 15.00% | |||||||||||
TAL Beijing [Member] | High And New Technology Enterprises [Member] | CHINA | Scenario, Forecast [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 15.00% | |||||||||||
Beijing Xintang Sichuang Education Technology Co Ltd [Member] | High And New Technology Enterprises [Member] | Scenario, Forecast [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 15.00% | |||||||||||
Beijing Xintang Sichuang Education Technology Co Ltd [Member] | Newly Established Software Enterprises [Member] | CHINA | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 12.50% | 12.50% | ||||||||||
Xueersi Education [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 25.00% | |||||||||||
Yidu Huida [Member] | High And New Technology Enterprises [Member] | CHINA | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 15.00% | |||||||||||
Yidu Huida [Member] | Key Software Enterprise [Member] | CHINA | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 10.00% | |||||||||||
Yinghe youshi [Member] | High And New Technology Enterprises [Member] | CHINA | Scenario, Forecast [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 15.00% | |||||||||||
Yizhen Xuesi [Member] | Newly Established Software Enterprises [Member] | Scenario, Forecast [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Preferential Tax Rate | 12.50% | |||||||||||
HONG KONG | TAL Holding Limited Hong Kong Co Ltd, Yidu Hong Kong and Firstleap Hong Kong [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Taxes Foreign Statutory Corporate Tax Rate | 16.50% |
COMMON SHARES (Details Textual)
COMMON SHARES (Details Textual) | Jan. 05, 2018USD ($)shares | Feb. 28, 2018USD ($)shares | Feb. 28, 2017USD ($)shares | Feb. 29, 2016USD ($)shares |
Number of classes of common shares | 2 | |||
Minority Interest Decrease From Redemptions Shares | 135,264 | |||
Minority Interest Decrease From Redemptions | $ | $ 25,041,493 | $ 16,543,120 | ||
Proceeds from Issuance of Private Placement | $ | $ 500,000,012 | $ 0 | $ 0 | |
Private Placement [Member] | ||||
Shares issued | 5,464,481 | |||
Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 76,491 | 103,888 | 40,136 | |
Stock Issued During Period, Shares, Acquisitions | 0 | 647,859 | ||
Minority Interest Decrease From Redemptions Shares | 135,264 | |||
Non-controlling interest [Member] | ||||
Cash Consideration When Purchasing the Noncontrolling Interest | $ | $ 10,448,063 | |||
Minority Interest Decrease From Redemptions | $ | 2,858,310 | |||
Non-controlling interest One [Member] | ||||
Cash Consideration When Purchasing the Noncontrolling Interest | $ | 14,593,430 | |||
Minority Interest Decrease From Redemptions | $ | $ 15,254,971 | |||
Non-vested shares | ||||
Non-vested shares vested and converted | 2,314,190 | 1,726,874 | 1,419,484 | |
Class A Common shares | ||||
Shares issued | 5,464,481 | |||
Shares issued related to vesting and conversion of non-vested shares | 2,314,190 | 1,726,874 | 1,419,484 | |
Common shares issued due to conversion of convertible shares | 900,000 | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 76,491 | 103,888 | 40,136 | |
Common Stock, Voting Rights | 1 | |||
Stock Issued During Period, Shares, Acquisitions | 0 | 647,859 | 478,036 | |
Number of Class A common shares into which each Class B common share is convertible | 1 | |||
Minority Interest Decrease From Redemptions Shares | 135,264 | |||
Minority Interest Decrease From Redemptions | $ | $ (135) | $ 0 | ||
Proceeds from Issuance of Private Placement | $ | $ 500,000,012 | |||
Class A Common shares | Common Stock [Member] | ||||
Conversion of Stock, Shares Issued | 16,380,780 | 342,462 | ||
Class B Common shares | ||||
Stock converted during period shares conversion of securities | 900,000 | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | |||
Common Stock, Voting Rights | 10 | |||
Stock Issued During Period, Shares, Acquisitions | 0 | 0 | 0 | |
Minority Interest Decrease From Redemptions Shares | 0 | |||
Minority Interest Decrease From Redemptions | $ | $ 0 | $ 0 | ||
American Depository Shares [Member] | ||||
Shares issued related to vesting and conversion of non-vested shares | 6,942,570 | 5,180,622 | 4,258,452 | |
Conversion of Stock, Shares Converted | 49,142,340 | 1,027,386 | ||
American Depository Shares [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 229,473 | 311,664 | 120,408 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) | 12 Months Ended | |||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | ||
Numerator: | ||||
Net income attributable to TAL Education Group's shareholders | $ 198,439,936 | $ 116,880,012 | $ 102,878,518 | |
Eliminate the dilutive effect of interest expense of the bond payable (iii) | 2,464,804 | 7,539,778 | 7,499,323 | |
Numerator for diluted net income per share | $ 200,904,740 | $ 124,419,790 | $ 110,377,841 | |
Denominator: | ||||
Weighted average shares outstanding: Basic | 174,979,574 | 162,548,494 | 160,109,169 | |
Effect of dilutive securities: | ||||
Dilutive effect of non-vested shares and options (i) | [1] | 11,084,069 | 8,467,663 | 5,447,276 |
Dilutive effect of the bond payable | 8,267,662 | 17,492,262 | 17,499,810 | |
Denominator for diluted net income per share | 194,331,305 | 188,508,419 | 183,056,255 | |
Net income per common share attributable to TAL Education Group's shareholders-basic (ii) | [2] | $ 1.13 | $ 0.72 | $ 0.64 |
Net income per common share attributable to TAL Education Group's shareholders-diluted | $ 1.03 | $ 0.66 | $ 0.6 | |
[1] | For the years ended February 29, 2016, February 28, 2017 and February 28, 2018, 1,421,576, 1,814,724 and 381,426 non-vested shares and share options were excluded from the calculation, respectively, as their effect was anti-dilutive. | |||
[2] | The Company's common shares are divided into Class A and Class B common shares. Holders of Class A and Class B common shares have the same dividend rights. Therefore, the Company does not present earnings per share for each separate class. |
NET INCOME PER SHARE (Details T
NET INCOME PER SHARE (Details Textual) - shares | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 381,426 | 1,814,724 | 1,421,576 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | |
Amounts due from related parties-current | [1] | $ 3,228,839 | $ 3,424,285 |
Amounts due to related parties-current | [2] | 8,745,624 | 3,042,785 |
Amounts due to related parties-non-current | [2] | $ 270,657 | $ 2,840,000 |
[1] | The amounts due from related parties represent loans, prepayments to certain investees and advance received by an investee on behalf of the Group. | ||
[2] | The amounts due to related parties are in connection with investment payable and advanced service fees from related parties. |
RELATED PARTY TRANSACTIONS (D96
RELATED PARTY TRANSACTIONS (Details 1) - USD ($) | 12 Months Ended | |||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | ||
Services fees | $ 879,796 | $ 596,987 | $ 426,084 | |
Other revenue | 1,016,040 | 60,657 | 0 | |
Purchase of equipment | 947,281 | 0 | 0 | |
Disposal gain | 9,025,511 | 0 | 211,818 | |
Baby Tree Inc [Member] | ||||
Disposal gain | [1] | $ 3,043,589 | $ 0 | $ 0 |
[1] | As disclosed in Note 14(a)(3), the Group sold part of equity interest in Babytree Inc. to Gongying Fund and recognized $3,043,589 disposal gain. |
RELATED PARTY TRANSACTIONS (D97
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 12 Months Ended | |||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | ||
Gain (Loss) on Sale of Investments, Total | $ 9,025,511 | $ 0 | $ 211,818 | |
Baby Tree Inc [Member] | ||||
Gain (Loss) on Sale of Investments, Total | [1] | $ 3,043,589 | $ 0 | $ 0 |
[1] | As disclosed in Note 14(a)(3), the Group sold part of equity interest in Babytree Inc. to Gongying Fund and recognized $3,043,589 disposal gain. |
COMMITMENTS AND CONTINGENCIES98
COMMITMENTS AND CONTINGENCIES (Details) | Feb. 28, 2018USD ($) |
February 2,019 | $ 226,097,223 |
February 2,020 | 227,316,124 |
February 2,021 | 201,111,732 |
February 2,022 | 169,360,927 |
February 2,023 | 122,846,419 |
Thereafter | 190,792,679 |
Total | $ 1,137,525,104 |
COMMITMENTS AND CONTINGENCIES99
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Lessee Leasing Arrangements Operating Leases Term of Contract Maximum | 15 years | ||
Operating Leases, Rent Expense | $ 224,842,144 | $ 148,640,828 | $ 82,257,681 |
Commitments and Contingencies | |||
Investment Commitment [Member] | |||
Commitments and Contingencies | 131,559,038 | ||
Capital Commitment [Member] | |||
Commitments and Contingencies | $ 69,804,423 |
MAINLAND CHINA CONTRIBUTION 100
MAINLAND CHINA CONTRIBUTION PLAN (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Defined Contribution Plan, Cost Recognized | $ 108,462,826 | $ 63,922,568 | $ 37,556,437 |
STATUTORY RESERVES AND RESTR101
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details Textual) - USD ($) | 12 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Appropriation of after Tax Income to Statutory Surplus Reserve Per Annum | 10.00% | |
Reserve Level Threshold for Mandatory Transfer Percentage | 50.00% | |
Minimum Appropriation of after Tax Income to Development Fund Percentage for Private Schools Requiring Reasonable Return | 25.00% | |
Minimum Appropriation of Annual Increase of Net Assets to Development Fund for Private Schools that do not Require Reasonable Return | 25.00% | |
Appropriations to Statutory Surplus Reserve | $ 476,296 | $ 877,924 |
Appropriations to Development Fund | 9,431,776 | 4,547,597 |
Paid in capital of Company's PRC subsidiaries, VIEs and VIEs' subsidiaries | 80,888,341 | 53,638,081 |
Statutory Reserve Plus Development Fund of Company's PRC subsidiaries, VIEs and VIEs' subsidiaries | 38,315,493 | 28,407,421 |
Total of restricted net assets of Company's PRC subsidiaries, VIEs and VIEs' subsidiaries | $ 119,203,834 | $ 82,045,502 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total Share-based Compensation Expense | $ 47,149,738 | $ 36,115,200 | $ 25,847,497 |
Cost of revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total Share-based Compensation Expense | 365,065 | 111,001 | 42,679 |
Selling and marketing expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total Share-based Compensation Expense | 5,037,013 | 3,367,840 | 2,479,864 |
General and administrative expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total Share-based Compensation Expense | $ 41,747,660 | $ 32,636,359 | $ 23,324,954 |
SHARE-BASED COMPENSATION (De103
SHARE-BASED COMPENSATION (Details 1) - 2010 Share Incentive Plan - $ / shares | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Number of non-vested shares | |||
Outstanding at the beginning of the period (in shares) | 13,101,006 | 14,239,102 | 12,586,650 |
Granted (in shares) | 1,111,836 | 1,564,442 | 4,877,946 |
Forfeited (in shares) | 187,719 | 425,980 | 1,355,964 |
Vested (in shares) | 2,375,107 | 2,276,558 | 1,869,530 |
Outstanding at the end of the period (in shares) | 11,650,016 | 13,101,006 | 14,239,102 |
Weighted average grant date fair value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 15.62 | $ 13.04 | $ 10.09 |
Granted (in dollars per share) | 74.63 | 36.42 | 18.67 |
Forfeited (in dollars per share) | 27.95 | 19.53 | 9.08 |
Vested (in dollars per share) | 14.81 | 13.04 | 10.78 |
Outstanding at the end of the period (in dollars per share) | $ 21.21 | $ 15.62 | $ 13.04 |
SHARE-BASED COMPENSATION (De104
SHARE-BASED COMPENSATION (Details 2) - $ / shares | 12 Months Ended | |||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected dividend yield | [1] | 0.00% | 0.00% | 0.00% |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free interest rate | [2] | 2.55% | 2.36% | 1.97% |
Expected life (years) | [3] | 6 years 3 months | 7 years 11 months 1 day | 8 years 9 months |
Volatility | [4] | 33.80% | 33.80% | 34.70% |
Fair value of options at grant date per share | $ 38.71 | $ 19.13 | $ 10.65 | |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free interest rate | [2] | 1.99% | 1.34% | 1.64% |
Expected life (years) | [3] | 6 years 2 months 1 day | 6 years 6 months 22 days | 6 years 3 months |
Volatility | [4] | 32.80% | 33.10% | 34.00% |
Fair value of options at grant date per share | $ 28.69 | $ 13.04 | $ 7.66 | |
[1] | The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. | |||
[2] | Risk-free interest rate for periods within the contractual life of the option is based upon the U.S. treasury yield curve in effect at the time of grant. | |||
[3] | Assumption of the expected term were based on the vesting and contractual terms and employee demographics. | |||
[4] | The volatility assumption was estimated based historical volatility of the Company's share price applying the guidance provided by ASC 718. The Company begins to estimate the volatility assumption solely based on its historical information since October 2010. |
SHARE-BASED COMPENSATION (De105
SHARE-BASED COMPENSATION (Details 3) - USD ($) | 12 Months Ended | |||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, Granted | 89,160 | 448,400 | 1,212,480 | |
Share Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, Outstanding | 1,338,882 | 1,122,546 | 0 | |
Number of shares, Granted | 89,160 | 448,400 | 1,212,480 | |
Number of shares, Exercised | 76,491 | 103,888 | 40,136 | |
Number of shares, Forfeited | 23,850 | 128,176 | 49,798 | |
Number of shares, Outstanding | 1,327,701 | 1,338,882 | 1,122,546 | 0 |
Number of shares, Vested and expected to vest | 1,327,701 | |||
Number of shares, Exercisable | 255,253 | |||
Weighted average exercise price, Outstanding | $ 20.12 | $ 15.88 | $ 0 | |
Weighted average exercise price, Granted | 59.5 | 29.26 | 15.90 | |
Weighted average exercise price, Exercised | 18.46 | 16.11 | 16.10 | |
Weighted average exercise price, Forfeited | 19.44 | 18.29 | 16.10 | |
Weighted average exercise price, Outstanding | 22.87 | $ 20.12 | $ 15.88 | $ 0 |
Weighted average exercise price, Vested and expected to vest | 22.87 | |||
Weighted average exercise price, Exercisable | $ 17.83 | |||
Weighted average remaining contractual life (Years), Outstanding | 8 years 6 months 22 days | 9 years 5 months 23 days | 9 years 9 months 7 days | 0 years |
Weighted average remaining contractual life (Years), Vested and expected to vest | 8 years 6 months 22 days | |||
Weighted average remaining contractual life (Years), Exercisable | 7 years 9 months 22 days | |||
Aggregate intrinsic value, Outstanding | $ 120,039,969 | $ 30,954,058 | $ 11,216,526 | $ 0 |
Aggregate intrinsic value, Vested and expected to vest | 120,039,969 | |||
Aggregate intrinsic value, Exercisable | $ 24,363,917 |
SHARE-BASED COMPENSATION (De106
SHARE-BASED COMPENSATION (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2013 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 5,810,756 | $ 2,555,454 | $ 341,003 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 13,578,925 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 6 years 3 months 18 days | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 229,433,295 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years 10 months 24 days | |||
Share-based Compensation, Total | $ 47,149,738 | $ 36,115,200 | $ 25,847,497 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 89,160 | 448,400 | 1,212,480 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 2,255,504 | $ 1,706,215 | $ 523,110 | |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | 10 years | 10 years | |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 3 years | 3 years | |
Equity Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Equity Option [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | 10 years | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 102 | $ 34.13 | $ 18.32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 12 years | |||
Equity Option [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 4 years | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 40.05 | $ 22.17 | $ 16.10 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Amended and restated 2010 Share Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Based Compensation Arrangement by Share Based Payment Award Number of Shares Authorized as Percent of Issued and Outstanding Shares | 5.00% | |||
Share Based Compensation Arrangement by Share Based Payment Award Threshold Percentage of Shares Authorized | 1.00% | |||
Share Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 35,175,335 | $ 29,686,316 | $ 20,153,533 | |
Non-vested shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation, Total | 44,329,988 | 34,003,045 | 24,929,207 | |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation, Total | $ 2,819,750 | $ 2,112,155 | $ 918,290 | |
Employees And Independent Directors [Member] | Non-vested shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,111,836 | 1,564,442 | 4,877,946 |
DISTRIBUTION TO SHAREHOLDERS (D
DISTRIBUTION TO SHAREHOLDERS (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 31, 2017 | Apr. 27, 2017 | Feb. 28, 2018 | |
Dividends Payable [Line Items] | |||
Dividends, Common Stock, Cash | $ 41,165,834 | $ 41,165,834 | |
Common Stock, Dividends, Per Share, Declared | $ 0.25 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Apr. 26, 2018 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Subsequent Event [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years 10 months 24 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 89,160 | 448,400 | 1,212,480 | |
Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | 10 years | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 38.71 | $ 19.13 | $ 10.65 | |
Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 3 years | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 28.69 | $ 13.04 | $ 7.66 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 9,000 | |||
Subsequent Event [Member] | Employee Stock Option [Member] | ||||
Subsequent Event [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 42.09 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 109.98 | |||
Subsequent Event [Member] | Non Vested Shares [Member] | ||||
Subsequent Event [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 882,892 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 109.98 | |||
Subsequent Event [Member] | Non Vested Shares [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 13 years | |||
Subsequent Event [Member] | Non Vested Shares [Member] | Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year |