0001193125-20-247160 | 20-F | XBRL Viewer | NEW Oriental Education Technology Group INC

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Cover Page	12 Months Ended
Cover Page	May 31, 2020 shares
Document Information [Line Items]
Document Type	20-F
Amendment Flag	false
Document Period End Date	May 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Registrant Name	NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
Entity Central Index Key	0001372920
Current Fiscal Year End Date	--05-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Voluntary Filers	No
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding	158,540,080
Document Accounting Standard	U.S. GAAP
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	No. 6 Hai Dian Zhong Street
Entity Address, City or Town	Beijing
Entity Address, Postal Zip Code	100080
Entity Address, Country	CN
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Registration Statement	false
Entity File Number	001-32993
Business Contact [Member]
Document Information [Line Items]
Entity Address, Address Line One	No. 6 Hai Dian Zhong Street
Entity Address, City or Town	Beijing
Entity Address, Postal Zip Code	100080
Entity Address, Country	CN
Contact Personnel Name	Zhihui Yang
Contact Personnel Email Address	yangzhihui@xdf.cn
City Area Code	86 10
Local Phone Number	6090-8000
Common Stock [Member]
Document Information [Line Items]
No Trading Symbol Flag	true
Title of 12(b) Security	Common shares
Security Exchange Name	NYSE
ADR [Member]
Document Information [Line Items]
Trading Symbol	EDU
Title of 12(b) Security	American depositary shares, each representing one common share
Security Exchange Name	NYSE

Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2020	May 31, 2019	May 31, 2018
Current assets
Cash and cash equivalents	$ 915,057	$ 1,414,171	$ 983,319
Restricted cash	0	43	47
Term deposits	284,793	108,672	107,741
Short-term investments	2,318,280	1,668,689	1,623,763
Accounts receivable, net of allowance of US$485, US$503 and US$557 as of May 31, 2018, 2019 and 2020, respectively	4,178	3,300	3,179
Inventory, net	31,324	29,046	40,175
Prepaid expenses and other current assets, net of allowance of US$914, US$248 and US$149 as of May 31, 2018, 2019 and 2020, respectively	199,404	199,677	182,095
Amounts due from related parties, current	3,384	42,644	1,595
Total current assets	3,756,420	3,466,242	2,941,914
Restricted cash, non-current	4,367	4,013	3,399
Property and equipment, net	672,455	532,015	449,592
Land use rights, net	6,037	6,405	3,785
Amounts due from related parties, non-current	22,709	1,204	2,226
Long-term deposits	62,116	49,742	40,099
Long-term prepaid rents	0	442	191
Intangible assets, net	10,246	13,935	8,544
Goodwill, net	80,366	79,614	31,729
Long-term investments, net	431,101	404,704	433,333
Deferred tax assets, non-current, net	63,324	61,467	43,323
Right-of-use assets	1,425,466	0	0
Other non-current assets	22,278	26,776	19,577
Total assets	6,556,885	4,646,559	3,977,712
Current liabilities
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to the Company of US$39,279, US$33,646 and US$31,658 as of May 31, 2018, 2019 and 2020, respectively)	33,147	34,057	39,889
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to the Company of US$335,955, US$518,937 and US$581,576 as of May 31, 2018, 2019 and 2020, respectively)	634,619	576,521	373,537
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to the Company of US$54,844, US$79,067 and US$87,331 as of May 31, 2018, 2019 and 2020, respectively)	101,385	94,071	67,233
Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entities without recourse to the Company of US$30, US$472 and US$1,590 as of May 31, 2018, 2019 and 2020, respectively)	1,590	472	30
Deferred revenue (including deferred revenue of the consolidated variable interest entities without recourse to the Company of US$1,244,748, US$1,268,318 and US$1,317,645 as of May 31, 2018, 2019 and 2020, respectively)	1,324,384	1,301,103	1,270,195
Operating lease liabilities-current (including operating lease liabilities-current of the consolidated variable interest entities without recourse to the Company of nil, nil and US$376,177 as of May 31, 2018, 2019 and 2020, respectively)	384,239	0	0
Total current liabilities	2,479,364	2,006,224	1,750,884
Deferred tax liabilities, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to the Company of US$13,782, US$18,607 and US$12,392 as of May 31, 2018, 2019 and 2020, respectively)	11,906	18,781	12,133
Long-term loan (including long-term loan of the consolidated variable interest entities without recourse to the Company of nil, nil and nil as of May 31, 2018, 2019 and 2020, respectively)	117,881	96,457
Operating lease liabilities (including operating lease liabilities of the consolidated variable interest entities without recourse to the Company of nil, nil and US$ 1,054,149 as of May 31, 2018, 2019 and 2020, respectively)	1,077,923	0	0
Total liabilities	3,687,074	2,121,462	1,763,017
Commitments and contingencies (Note 21)
Mezzanine equity
Redeemable non-controlling interests	0	0	206,624
Equity
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2018, 2019 and 2020; 158,379,387, 158,801,714 and 158,801,714 shares issued as of May 31, 2018, 2019 and 2020; 158,319,910, 157,849,714 and 158,540,080 shares outstanding as of May 31, 2018, 2019 and 2020 respectively)	1,588	1,588	1,584
Treasury stock	(3)	(10)	(1)
Additional paid-in capital	456,088	428,959	129,059
Statutory reserves	380,078	305,529	263,518
Retained earnings	1,986,411	1,647,627	1,352,543
Accumulated other comprehensive income (loss)	(90,867)	(23,007)	244,886
Total New Oriental Education & Technology Group Inc. shareholders' equity	2,733,295	2,360,686	1,991,589
Non-controlling interests	136,516	164,411	16,482
Total equity	2,869,811	2,525,097	2,008,071
Total liabilities, mezzanine equity and equity	$ 6,556,885	$ 4,646,559	$ 3,977,712

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 31, 2020	May 31, 2019	May 31, 2018
Accounts receivable, allowance	$ 557	$ 503	$ 485
Prepaid expenses and other current assets, allowance	149	248	914
Accounts payable, consolidated variable interest entity without recourse	31,658	33,646	39,279
Accrued expenses and other current liabilities, consolidated variable interest entity without recourse	581,576	518,937	335,955
Income taxes payable, consolidated variable interest entity without recourse	87,331	79,067	54,844
Amounts due to related parties, consolidated variable interest entity without recourse	1,590	472	30
Deferred revenue, consolidated variable interest entity without recourse	1,317,645	1,268,318	1,244,748
Deferred tax liabilities, non-current consolidated variable interest entity without recourse	12,392	18,607	13,782
Long term debt consolidated variable interest entities without recourse	0	0	0
Operating Lease Liability-current, consolidated variable interest entity without recourse	376,177	0	0
Operating Lease Liability non current consolidated variable interest entity without recourse	$ 1,054,149	$ 0	$ 0
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000	300,000,000
Common stock, shares issued	158,801,714	158,801,714	158,379,387
Common stock, shares outstanding	158,540,080	157,849,714	158,319,910

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Net revenues
Educational programs and services	$ 3,230,378	$ 2,785,254	$ 2,165,152
Net revenues	3,578,682	3,096,491	2,447,430
Operating cost and expenses
Cost of revenues	(1,588,899)	(1,376,269)	(1,065,740)
Selling and marketing	(445,259)	(384,287)	(324,249)
General and administrative	(1,145,521)	(1,034,028)	(794,482)
Total operating cost and expenses	(3,179,679)	(2,794,584)	(2,184,471)
Gain on disposal of a subsidiary		3,627
Operating income	399,003	305,534	262,959
Other income, net
Interest income	116,117	97,530	84,838
Interest expense	(4,627)	(1,615)
Realized gain from long-term investments	407	26,379	7,366
Impairment loss from long-term investments	(31,750)	(5,919)	(980)
Loss from fair value change of long-term investments	(18,451)	(104,636)
Miscellaneous income (loss), net	27,137	(1,424)	2,841
Income before income taxes and loss from equity method investments	487,836	315,849	357,024
Provision for income taxes:
Current	(142,992)	(103,031)	(72,785)
Deferred	8,630	17,317	13,377
Provision for income taxes	(134,362)	(85,714)	(59,408)
(Loss) gain from equity method investments	1,385	(2,289)	(379)
Net income	354,859	227,846	297,237
Less: Net income (loss) attributable to non-controlling interests	(58,474)	(10,219)	1,107
Net income attributable to New Oriental Education & Technology Group Inc.'s shareholders	$ 413,333	$ 238,065	$ 296,130
Net income per common share (Note 19)
- Basic	$ 2.61	$ 1.50	$ 1.87
- Diluted	$ 2.59	$ 1.50	$ 1.87
Weighted average shares used in calculating basic and diluted net income per common share
- Basic	158,429,576	158,293,890	158,168,794
- Diluted	159,536,890	159,039,345	158,556,500
Books and other services [Member]
Net revenues
Net revenues	$ 348,304	$ 311,237	$ 282,278

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 354,859	$ 227,846	$ 297,237
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	(67,529)	(190,358)	79,293
Unrealized gain (loss) on available-for-sale investments, net of tax effect of US$8,825, US$3,463 and US$60 for the years ended May 31, 2018, 2019 and 2020, respectively	(748)	19,483	129,545
Other comprehensive income (loss), net of tax	(68,277)	(170,875)	208,838
Comprehensive income	286,582	56,971	506,075
Comprehensive income (loss) attributable to non-controlling interests	(58,891)	(11,130)	4,220
Comprehensive income attributable to New Oriental Education & Technology Group Inc.'s shareholders	$ 345,473	$ 68,101	$ 501,855

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Statement of Comprehensive Income [Abstract]
Unrealized gain on available-for-sale investments, tax effect	$ 60	$ 3,463	$ 8,825

Consolidated Statements of Changes in Equity - USD ($)
$ in Thousands

Total

Common Shares [Member]

Additional Paid-in Capital [Member]

Treasury Stock [Member]

Accumulated Other Comprehensive Income (loss) [Member]

Statutory Reserves [Member]

Retained Earnings [Member]

Total New Oriental Education & Technology Group Inc. Shareholders' Equity [Member]

Non-controlling Interests [Member]

Balance at May. 31, 2017

$ 1,720,078

$ 1,584

$ 249,126

$ (7)

$ 39,161

$ 219,975

$ 1,171,109

$ 1,680,948

$ 39,130

Balance, shares at May. 31, 2017

157,687,444

691,943

Reissuance of treasury stock for the exercises of options

Reissuance of treasury stock for the exercises of options, shares

500

(500)

Reissuance of treasury stock for non-vested equity shares ("NES")

(6)

$ 6

Reissuance of treasury stock for non-vested equity shares ("NES"), shares

631,966

(631,966)

Share-based compensation expenses

57,443

Transfer to statutory reserves

43,543

(43,543)

Dividend declared

^[1]

(71,384)

(71,153)

(231)

Net income

297,237

296,130

1,107

Foreign currency translation adjustment

79,293

76,344

2,949

Unrealized gain on available-for-sale investments, net of tax effect

129,545

129,381

164

Impact from reclassification of non-controlling interests and new non-controlling interests recognized in acquisitions

(111,769)

(113,784)

2,015

Capital reduction of non-controlling interests

(92,373)

(63,721)

(28,652)

Balance at May. 31, 2018

$ 2,008,071

$ 1,584

129,059

$ (1)

244,886

263,518

1,352,543

1,991,589

16,482

Balance, shares at May. 31, 2018

158,379,387

158,319,910

59,477

Reissuance of treasury stock for non-vested equity shares ("NES"), shares

59,477

(59,477)

Issuance of treasury stock and common shares for NES

$ 4

(5)

$ 1

Issuance of treasury stock and common shares for NES, Shares

481,804

Shares repurchase

$ (55,962)

(55,952)

$ (10)

(55,962)

Shares repurchase, shares

(952,000)

952,000

Share-based compensation expenses

71,336

Transfer to statutory reserves

42,011

(42,011)

Net income

227,846

238,065

(10,219)

Foreign currency translation adjustment

(190,358)

(188,982)

(1,376)

Unrealized gain on available-for-sale investments, net of tax effect

19,483

19,018

465

Change in non-controlling interests resulting from the initial public offering (the "IPO") of Koolearn Technology Holding Limited ("Koolearn Holding"), net of issuance cost

233,347

139,211

94,136

Reclassification of redeemable non-controlling interests

206,624

145,690

60,934

Purchase of non-controlling interests

(16,886)

(15,190)

(1,696)

Non-controlling interests arising from acquisitions

288

Disposal of a subsidiary

(291)

(371)

Cumulative-effect adjustment upon adoption of ASU 2016-01 at May. 31, 2019

(97,929)

97,929

Cumulative-effect adjustment upon adoption of ASC Topic 606 at May. 31, 2019

1,101

Capital contribution from non-controlling interests

20,498

15,181

5,317

Balance at May. 31, 2019

$ 2,525,097

$ 1,588

428,959

$ (10)

(23,007)

305,529

1,647,627

2,360,686

164,411

Balance, shares at May. 31, 2019

158,801,714

157,849,714

952,000

Reissuance of treasury stock for non-vested equity shares ("NES"), shares

690,366

(690,366)

Issuance of treasury stock and common shares for NES

(7)

$ 7

Issuance of treasury stock and common shares for NES, Shares

690,366

Share-based compensation expenses

$ 62,057

41,326

20,731

Exercise of share options in Koolearn Holding

3,629

Transfer to statutory reserves

74,549

(74,549)

Net income

354,859

413,333

(58,474)

Foreign currency translation adjustment

(67,529)

(67,112)

(417)

Unrealized gain on available-for-sale investments, net of tax effect

(748)

Purchase of non-controlling interests

(13,370)

(20,045)

6,675

Share option gain

5,752

Capital contribution from non-controlling interests

103

(39)

Balance at May. 31, 2020

$ 2,869,811

$ 1,588

$ 456,088

$ (3)

$ (90,867)

$ 380,078

$ 1,986,411

$ 2,733,295

$ 136,516

Balance, shares at May. 31, 2020

158,801,714

158,540,080

261,634

[1]

On July 25, 2017, the Company declared a special cash dividend in the amount of US$0.45 per American Depositary Shares (the “ADS”). The aggregate amount of cash dividend paid was US$71,153, which was funded by retained earnings. The dividend was fully paid on October 6, 2017 to shareholders of record at the close of business on September 1, 2017.

Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Thousands		12 Months Ended
	Jul. 25, 2017	May 31, 2020	May 31, 2019	May 31, 2018
Unrealized gain on available-for-sale investments, tax effect		$ 60	$ 3,463	$ 8,825
Special cash dividend declared per share	$ 0.45
Cash paid for dividend	$ 71,153			71,153
Special cash dividend declared date	Jul. 25, 2017
Dividend payment date	Oct. 06, 2017
Shareholders date of record	Sep. 01, 2017
Accumulated Other Comprehensive Income (Loss) [Member]
Unrealized gain on available-for-sale investments, tax effect		60	3,463	8,825
Total New Oriental Education & Technology Group Inc. Shareholders' Equity [Member]
Unrealized gain on available-for-sale investments, tax effect		60	3,463	8,825
Non-controlling Interests [Member]
Unrealized gain on available-for-sale investments, tax effect		$ 60	$ 3,463	$ 8,825

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Cash flows from operating activities
Net income	$ 354,859	$ 227,846	$ 297,237
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property and equipment	146,310	110,042	77,081
Amortization of intangible assets	4,530	3,699	1,839
Amortization of land use rights	162	263	110
Loss on disposal of property and equipment	4,866	10,685	2,032
Gain on disposal of a subsidiary		(3,627)
Goodwill impairment	0	5,245	0
Impairment loss from long-term investments	31,750	5,919	980
Realized gain from long-term investments	(407)	(26,379)	(7,366)
Loss from fair value change of long-term investments	18,451	104,636
Share-based compensation expenses	62,057	71,336	57,443
Allowance for doubtful accounts	329	146	576
Loss (gain) from equity method investments	(1,385)	2,289	379
Deferred income taxes	(8,566)	(17,273)	(14,821)
Changes in operating assets and liabilities
Accounts receivable	(1,422)	(509)	767
Inventory	(3,278)	6,032	(6,316)
Prepaid expenses and other current assets	(40,713)	(23,624)	(51,738)
Amounts due from related parties	14,106	(3,022)	4,250
Long-term deposits	(14,266)	(12,622)	(14,300)
Long-term prepaid rents	658	858	1,185
Operating lease rights-of-use assets	(170,871)
Accounts payable	82	(2,747)	13,728
Accrued expenses and other current liabilities	63,667	(18,321)	68,226
Income taxes payable	56,372	27,210	15,473
Amounts due to related parties	1,152	670	(21)
Deferred revenue	61,930	336,896	334,383
Operating lease liabilities	224,082
Net cash provided by operating activities	804,455	805,648	781,127
Cash flows from investing activities
Purchase of term deposits	(249,048)	(104,178)	(117,166)
Proceeds from maturity of term deposits	69,740	95,402	212,690
Payments for short-term investments	(2,964,402)	(3,595,634)	(1,250,239)
Proceeds from maturity of short-term investments	2,248,486	3,432,981	1,025,721
Purchase of property and equipment	(309,548)	(269,140)	(214,255)
Proceeds from disposal of property and equipment	24,477	17,238	9,812
Payments for long-term investments	(92,087)	(128,970)	(67,350)
Proceeds from disposal of long-term investments	8,480	46,956
Business acquisitions, net of cash acquired of US$12,210, US$2,697 and US$1,419 for the years ended May 31, 2018, 2019 and 2020, respectively (Note 3)	1,073	(36,367)	(999)
Purchase of land use rights		(7,738)	(5,357)
Loans provided to related parties	(7,128)	(61,155)
Repayment of loan provided to related parties	712	45,682
Disposal of subsidiaries, net of cash disposed of nil, US$12,050 and US$665 for the years ended May 31, 2018, 2019 and 2020, respectively	12,875	(9,789)
Net cash used in investing activities	(1,256,370)	(574,712)	(407,143)
Cash flows from financing activities
Proceeds from issuances of common shares upon exercise of share options	3,629		1
Proceeds from issuance of ordinary shares relating to the IPO of Koolearn Holding		233,347
Cash paid for employees' individual income taxes on withheld shares from exercise of NES	(9,853)	(12,085)	(7,241)
Contingent consideration payments made after a business combination	(18,332)
Cash paid for dividend			(71,153)
Proceeds from long-term loan	20,000	96,457
Cash paid for shares repurchase		(55,962)
Capital contribution from non-controlling interests	64	20,498	93,159
Repurchase of shares from non-controlling interests	(13,370)	(15,606)	(89,647)
Net cash (used in) provided by financing activities	(17,862)	266,649	(74,881)
Effects of exchange rate changes	(29,026)	(66,123)	42,992
Net change in cash, cash equivalents and restricted cash	(498,803)	431,462	342,095
Cash, cash equivalents and restricted cash at beginning of year	1,418,227	986,765	644,670
Cash, cash equivalents and restricted cash at end of year	919,424	1,418,227	986,765
Supplement disclosure of cash flow information
Income taxes paid	135,678	75,346	57,005
Interests paid	4,665	833
Non-cash investing and financing activities
Payable for investments and acquisitions	3,917	21,962	5,420
Payable for purchase of property and equipment	$ 65,335	44,445	$ 45,590
Receivable from the disposal of a subsidiary		$ 13,760

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Cash Disposed Of In The Divested Subsidary	$ 665	$ 12,050	$ 0
Beijing Ainuo Shida Education & Technology Co., Ltd [Member]
Purchase of business, cash acquired	$ 1,419	$ 2,697	$ 12,210

Organization and Principal Activities

12 Months Ended

May 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Principal Activities

1.	ORGANIZATION AND PRINCIPAL ACTIVITIES

New Oriental Education & Technology Group Inc. (the “Company”) was incorporated in the Cayman Islands. The Company, its consolidated subsidiaries and its variable interest entities (the “VIEs”) and the VIEs’ subsidiaries and schools are collectively referred to as the “Group”.

The Group provides educational services in the People’s Republic of China (the “PRC”) primarily under the “New Oriental” brand. The Group offers a wide range of educational programs, services and products, consisting primarily of K-12 after-school tutoring (“K-12 AST”), test preparation and other courses, primary and secondary school education, online education, content development and distribution, overseas study consulting services, pre-school education and study tour.

As of May 31, 2020, details of the Company’s major subsidiaries, its VIEs and the VIEs’ major subsidiaries and schools were as follows:


Name	Date of incorporation or acquisition	Place of incorporation (or establishment)/ operation	Legal ownership	Principal activity
Major subsidiaries of the Company:
Beijing Decision Education & Consulting Company Limited (“Beijing Decision”)	April 20, 2005	PRC	100%	Educational technology and management services
Beijing Hewstone Technology Company Limited (“Beijing Hewstone”)	April 20, 2005	PRC	100%	Educational software development
Elite Concept Holdings Limited (“Elite Concept”)	December 3, 2007	Hong Kong	100%	Educational consulting
Winner Park Limited (“Winner Park”)	December 9, 2008	Hong Kong	100%	Educational consulting
Smart Shine International Limited (“Smart Shine”)	December 9, 2008	Hong Kong	100%	Educational consulting
Beijing Pioneer Technology Company Limited (“Beijing Pioneer”)	January 8, 2009	PRC	100%	Educational software development
Beijing Smart Wood Software Technology Company Limited (“Beijing Smart Wood”)	December 21, 2011	PRC	100%	Educational consulting and software development
Koolearn Holding	February 7, 2018	Cayman Islands	53.22%	Online education service
New Oriental Xuncheng Technology (HK) Limited (“Koolearn Tech”)	March 2, 2018	Hong Kong	53.22%	Online education service
Beijing Dexin Dongfang Network Technology Co., Ltd. (“Dexin Dongfang”)	March 21, 2018	PRC	53.22%	Educational consulting and software development
Zhuhai Chongsheng Heli Network Technology Co., Ltd (“Zhuhai Chongsheng”)	July 23, 2019	PRC	53.22%	Educational consulting and software development


Name	Date of incorporation or acquisition	Place of incorporation (or establishment)/ operation	Legal ownership	Principal activity
VIEs of the Company:
New Oriental Education & Technology Group Co., Ltd (“New Oriental China”)	August 2, 2001	PRC	N/A	Education consulting, software development and distributions and other services
Beijing New Oriental Xuncheng Network Technology Co., Ltd. (“Xuncheng”)	March 11, 2005	PRC	N/A	Online education service
Major subsidiaries and schools of the VIEs:
Beijing Haidian District Privately-Funded New Oriental School (“Beijing Haidian School”)	October 5, 1993	PRC	N/A	Language training and test preparation
Beijing New Oriental Yangzhou Foreign Language School	June 6, 2002	PRC	N/A	Primary and secondary school education
Wuhan New Oriental Training School	April 28, 2002	PRC	N/A	Language training and test preparation


Name	Date of incorporation or acquisition	Place of incorporation (or establishment)/ operation	Legal ownership	Principal activity
Xi’an Yanta District New Oriental School	November 26, 2002	PRC	N/A	Language training and test preparation
Nanjing Gulou New Oriental Advanced Study School	November 28, 2002	PRC	N/A	Language training and test preparation
Beijing New Oriental Dogwood Cultural Communications Co., Ltd. (“Dogwood”)	May 16, 2003	PRC	N/A	Content development and distribution
Beijing New Oriental Vision Overseas Consultancy Co., Ltd.	February 19, 2004	PRC	N/A	Oversea study consulting service
Hangzhou New Oriental Advanced Study School	July 21, 2005	PRC	N/A	Language training and test preparation
Beijing Chaoyang District Kindergarten of Stars	November 20, 2007	PRC	N/A	Pre-school education

The VIE arrangements

The PRC laws and regulations currently require any foreign entity that invests in the education business in China to be an educational institution with relevant experience in providing educational services outside of China. The Company’s offshore holding companies are not educational institutions and do not provide educational services outside of China. In addition, in the PRC, foreign ownership of high schools for students in grades ten to twelve is restricted and foreign ownership of primary and middle schools for students in grades one to nine is prohibited. Accordingly, the Company’s offshore holding companies are not allowed to directly own and operate schools in China. The Company conducts substantially all of its education business in China through contractual arrangements with its VIEs, New Oriental China and its subsidiaries and schools and Xuncheng and its subsidiaries. Since the operations of New Oriental China and its subsidiaries and schools and Xuncheng and its subsidiaries are closely interrelated and almost indistinguishable from one another, the risks and rewards associated with their operations are substantially the same. In addition, the Company consolidates New Oriental China, its subsidiaries and schools, Xuncheng and its subsidiaries as disclosed. Therefore, the Company aggregates the disclosures related to New Oriental China, its subsidiaries and schools, and Xuncheng and its subsidiaries as the VIEs in the Company’s consolidated financial statements. The VIEs hold the requisite licenses and permits necessary to conduct the Company’s education business. In addition, the VIEs hold leases and other assets necessary to operate the Company’s schools and learning centers, employ teachers and generate substantially all of the Company’s revenues.

VIE Arrangements between New Oriental China and the Company’s PRC subsidiaries

The Company and its wholly owned subsidiaries in China (the “WFOEs”) have entered into the following contractual arrangements with New Oriental China, New Oriental China’s subsidiaries and schools and New Oriental China’s shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, (2) receive substantially all of the economic benefits of the VIEs that could be significant to the VIEs and (3) have an exclusive option to purchase all or part of the equity interests in New Oriental China, when and to the extent permitted by PRC law, or request the existing shareholder of New Oriental China to transfer all or part of the equity interest in New Oriental China to another PRC person or entity designated by us at any time in the Company’s discretion. Accordingly, the Company is considered the primary beneficiary of the VIE and has consolidated the VIE’s financial results of operations, assets and liabilities in the Company’s consolidated financial statements. In making the conclusion that the Company is the primary beneficiary of the VIE, the Company believes the Company’s rights under the terms of the exclusive option agreement provide it with the substantive kick-out rights. More specifically, the Company believes the terms of the exclusive option agreement are valid, binding and enforceable under the PRC laws and regulations currently in effect. The Company also believes that the minimum amount of consideration permitted by the applicable PRC law to exercise the option does not represent a financial barrier or disincentive for the Company to currently exercise its rights under the exclusive option agreement.

A simple majority vote of the Company’s board of directors is required to pass a resolution to exercise the Company’s rights under the exclusive option agreement, for which Mr. Michael Minhong Yu (“Mr. Yu”)’s consent is not required. The Company’s rights under the exclusive option agreement give the Company the power to control the shareholders of New Oriental China and thus the power to direct the activities that most significantly impact the schools’ economic performance given that New Oriental China has the power to direct the activities of the schools via its sponsorship interest. In addition, the Company’s rights under the power of attorney also reinforce the Company’s abilities to direct the activities that most significantly impact the VIE’s economic performance. The Company also believes that this ability to exercise control ensures that the VIE will continue to execute and renew service agreements and pay service fees to the Company. By charging service fees in whatever amounts the Company deems fit, and by ensuring that service agreements are executed and renewed indefinitely, the Company has the rights to receive substantially all of the economic benefits from the VIE.

Service agreements.

There are four types of service agreements: (i) trademark license agreements, (ii) new enrollment system development service agreements, (iii) other operating service agreements, and (iv) sale of educational software agreements.

(i)

Trademark license agreements. Pursuant to the trademark license agreement dated May 13, 2006 between the Company as the licensor and New Oriental China as the licensee, the Company has licensed the trademarks to New Oriental China for its use in China. The Company has also allowed New Oriental China to enter into sub-license agreements with its subsidiaries and schools pursuant to which each of the subsidiaries and schools may use the trademarks in China by paying license fees. This license is valid from May 14, 2006 to December 31, 2050, subject to the renewal every ten years upon the expiration of the trademark registration.

(ii)

New enrollment system development service agreements. Beijing Decision has entered into new enrollment system development service agreements with the schools of New Oriental China, under which Beijing Decision agreed to provide new enrollment system development and regular maintenance services to those schools of New Oriental China for a fee equal to the applicable fee rate multiplied by the number of new student enrollments. These agreements can be renewed by both parties to the agreements.

(iii)

Other operating service agreements. Pursuant to operating service agreements between certain WFOEs and the subsidiaries or schools of New Oriental China, the WFOEs have agreed to provide certain operating services to the subsidiaries or schools of New Oriental China for fees that are calculated based on a percentage, ranging from 2.0% to 6.0%, of respective revenues of each of the subsidiaries and schools. A majority of these agreements provide unlimited two-year or five-year automatic renewal without consent of the WFOEs. The remaining agreements can be renewed by both parties to the agreements.

(iv)

Sale of educational software agreements. Ten WFOEs, namely Beijing Hewstone, Beijing Pioneer, Beijing Smart Wood, Beijing Joy Tend Technology Company Limited

(“Beijing Joy Trend”)

, Beijing magnificence Technology Company Limited (“Beijing Magnificence”), Beijing Top Technology Company Limited (“Beijing Top”), Beijng Shenghe Technology Company Ltd

(“Beijing

Shenghe

”)

, Beijing Right Time Technology Company Limited (“Beijing Right Time”), Beijing Sincerity Technology Company Limited and Beijing Jinghong Software Technology Company Ltd. (“Beijing Jinghong”), entered into agreements whereby the WFOEs sell various self-developed educational software to the subsidiaries or schools of New Oriental China. Except for four agreements that are silent on renewal, these agreements provide unlimited two-year automatic renewal terms, and the subsidiaries and schools of New Oriental China cannot terminate the agreements without the consent of the WFOEs in China.

Master exclusive service agreement.

On September 19, 2014, Beijing Pioneer entered into a master exclusive service agreement with New Oriental China to enable the Company’s wholly owned subsidiaries in China to receive substantially all of the economic benefits of New Oriental China and its subsidiaries and schools. Under the master exclusive service agreement, Beijing Pioneer has the exclusive rights to provide or designate any entities affiliated with it to provide New Oriental China and its subsidiaries and schools the technical and business support services, including new enrollment system development service, sale of educational software and other operating services. Each service provider specified in the service agreement (iv) has the rights to determine the fees associated with the services it provides based on the technical difficulty and complexity of the services and the actual labor costs it incurs for providing the services during the relevant period. The term of this agreement is ten years and will be automatically extended upon expiration. Beijing Pioneer may terminate the agreement at any time with a 30-day prior written notice to New Oriental China, whereas none of New Oriental China and its subsidiaries and schools can terminate this agreement. The various existing service agreements mentioned in service agreements (i)~(iv) will remain effective after the inclusion of the master exclusive service agreement; however, if they have any conflict with the terms and conditions of the master exclusive service agreement, the master exclusive service agreement will prevail. The master exclusive service agreement was effective on September 19, 2014.

Equity pledge agreements

. Pursuant to the equity pledge agreements dated May 25, 2006 among New Oriental China, all of the shareholders of New Oriental China, Beijing Hewstone and Beijing Decision, each shareholder of New Oriental China agreed to pledge his or its equity interest in New Oriental China to Beijing Hewstone and Beijing Decision to secure the performance of the VIEs’ obligations under the existing service agreements and any such agreements to be entered into in the future. The shareholders of New Oriental China agreed not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on their equity interests in New Oriental China without the prior written consent of Beijing Hewstone and Beijing Decision.

In January 2012, ten former shareholders of New Oriental China completed the transfer, for no consideration, of all of their equity interests in New Oriental China to Beijing Century Friendship Education Investment Co., Ltd. (“Century Friendship”), a PRC domestic enterprise controlled by the Company’s founder and chairman, Mr. Yu. Prior to the transfer, Century Friendship had held 53% of the equity interests in New Oriental China while the ten former shareholders of New Oriental China held the remaining equity interests. In connection to the transfer, five new equity pledge agreements dated April 23, 2012 were entered into among New Oriental China, Century Friendship and five WFOEs, whereby Century Friendship has agreed to pledge all of its equity interests in New Oriental China to the WFOEs to secure the VIEs’ performance of their obligations under the trademark license agreements, new enrollment system development service agreements, other operating service agreements and sale of educational software agreements. Century Friendship has agreed not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on its equity interests in New Oriental China without the prior written consents of the WFOEs. The terms of the April 2012 equity pledge agreements are substantially the same as the 2006 equity pledge agreements.

In February 2017, as part of efforts to streamline the corporate structure, the Group removed Shanghai Smart Words Software Technology Co., Ltd. (“Shanghai Smart Words”) as a party to the contractual arrangements with New Oriental China and its subsidiaries and schools and the shareholders. The rights and obligations of Shanghai Smart Words under these contractual arrangements have been assumed by Beijing Decision. The April 2012 equity pledge agreements have been amended to reflect the foregoing change while the terms of these agreements remain unchanged. The equity pledges of Century Friendship under the amended agreements have been registered with the Haidian District, Beijing branch of the State Administration of Market Regulation (the “SAMR”).

Exclusive option agreements

. Pursuant to the exclusive option agreements entered into on various dates, as amended on May 25, 2006, among the Company, New Oriental China and its shareholders, the shareholders of New Oriental China are obligated to sell to the Company, and the Company has an exclusive, irrevocable and unconditional rights to purchase, or cause the shareholders of New Oriental China to sell to the Company’s designated party, in the Company’s sole discretion, part or all of the shareholders’ equity interests in New Oriental China when and to the extent that applicable PRC law permits the Company to own part or all of such equity interests in New Oriental China. In addition, pursuant to the exclusive option agreements, the Company has an exclusive, irrevocable and unconditional right to request any existing shareholders of New Oriental China to transfer all or part of the equity interest in New Oriental China held by such shareholder to another PRC person or entity designated by the Company at any time in the discretion. The price to be paid by the Company or a PRC person or entity designated by the WFOEs will be the minimum amount of consideration permitted by applicable PRC law at the time when such share transfer occurs. As a result of the ten former shareholders of New Oriental China transferring all of their equity interests in New Oriental China to Century Friendship in January 2012, Century Friendship executed a new option agreement with Shanghai Smart Words and New Oriental China on April 23, 2012. The terms of this new option agreement are substantially the same as the 2006 exclusive option agreements.

On February 16, 2017, Beijing Decision entered into a new option agreement with Century Friendship and New Oriental China, replacing the previous option agreement dated April 23, 2012. Pursuant to the current option agreement, Century Friendship is obligated to sell to Beijing Decision, and Beijing Decision has an exclusive, irrevocable and unconditional rights to purchase from Century Friendship, in its sole discretion, part or of all of Century Friendship’s equity interests in New Oriental China when and to the extent that applicable PRC law permits it to own part or all of the equity interest in New Oriental China. In addition, Beijing Decision has an exclusive option to require Century Friendship to transfer all or part of Century Friendship’s equity interest in New Oriental China to another PRC person or entity designated by Beijing Decision at any time in its discretion. The purchase price to be paid by Beijing Decision will be the minimum amount of consideration permitted by applicable PRC law at the time when such share transfer occurs.

Power of Attorney.

On December 3, 2012, Century Friendship, in the capacity of the sole shareholder of New Oriental China, executed a proxy agreement and power of attorney with Beijing Pioneer, which is one of the Company’s wholly owned subsidiaries in China, and New Oriental China, whereby Century Friendship irrevocably appoints and constitutes Beijing Pioneer as its attorney-in-fact to exercise on Century Friendship’s behalf any and all rights that Century Friendship has in respect of its equity interests in New Oriental China. This proxy agreement and power of attorney became effective on December 3, 2012 and replaces the powers of attorney executed by Century Friendship on April 23, 2012. The proxy agreement and power of attorney will remain effective as long as New Oriental China exists. Century Friendship does not have the rights to terminate the proxy agreement and power of attorney or revoke the appointment of the attorney-in-fact without the prior written consent of Beijing Pioneer.

VIE Arrangements between Dexin Dongfang and Xuncheng

On May 10, 2018, Dexin Dongfang, a wholly-owned subsidiary of Koolearn Holding, entered into certain contractual arrangements (the “Contractual Arrangements”) with Xuncheng and the shareholders of Xuncheng, which enable Koolearn Holding to obtain control over Xuncheng, Beijing Kuxue Huisi Network Technology Co., Ltd. (“Kuxue Huisi”) and

Beijing Dongfangyoubo Network Technology Co.,Ltd. (“

Dongfang Youbo

”)

(together the “Xuncheng VIE entities”).

The Contractual Arrangements include an Exclusive Management Consultancy and Business Cooperation Agreement, an Exclusive Call Option Agreement, an Equity Pledge Agreement, a Powers of Attorney and Dispute resolution and Letters of undertaking. The terms of these contractual agreements between Dexin Dongfang and Xuncheng are substantially similar to those agreements of New Oriental China described in the preceding paragraphs.

Through these Contractual Agreements, Dexin Dongfang has the ability to (1) expose, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over Xuncheng VIE entities; (2) exercise equity holders’ controlling voting rights of Xuncheng VIE entities; (3) receive substantially all of the economic benefits of Xuncheng VIE entities in consideration for the business support, technical and consulting services provided by Dexin Dongfang; (4) obtain an irrevocable and exclusive right to purchase all or part of equity interests in Xuncheng VIE entities from the respective equity holders at nil consideration or a minimum purchase price permitted under the PRC Laws; (5) obtain a pledge over the entire equity interest of Xuncheng from their equity holders as collateral security for all of Xuncheng VIE entities’ payments.

On October 10, 2019, Dexin Dongfang and Zhuhai Chongsheng, a wholly-owned PRC subsidiary of Koolearn Holding entered into a supplemental agreement with Xuncheng and its subsidiaries and all of its shareholders. Pursuant to the supplemental agreement, Zhuhai Chongsheng joined as a party to the contractual agreements between Dexin Dongfang, Xuncheng and its subsidiaries and shareholders and assumed the same rights and shared the same obligations of Dexin Dongfang under the contractual agreements.

On October 10, 2019, Dongfang Youbo, a subsidiary of Xuncheng, executed a letter of acceptance whereby it assumed the same rights and obligations as Xuncheng’s subsidiary under the exclusive management consultancy and business cooperation agreement.

Risks in relation to the VIE structure

The Company believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with the PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of the PRC laws and regulations, the PRC government could:

•

revoke the business and operating licenses of the Company’s PRC subsidiaries and the VIEs;

•

discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiaries and the VIEs;

•

limit the Group’s business expansion in China by way of entering into contractual arrangements;

•

impose fines or other requirements with which the Company’s PRC subsidiaries and the VIEs may not be able to comply;

•

require the Company or the Company’s PRC subsidiaries or the VIEs to restructure the relevant ownership structure or operations; or

•

restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China.

The Company’s ability to conduct its education business may be negatively affected if the PRC government were to carry out of any the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and their respective shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiaries or the VIEs.

Mr. Yu is the controlling shareholder of Century Friendship, which owns all of the equity interests in New Oriental China, which in turn owns all of the equity interests in Xuncheng, and Mr. Yu is also a beneficial owner of the Company. The interests of Mr. Yu as the beneficial owner of the VIEs may differ from the interests of the Company as a whole, since Mr. Yu is one of the beneficial shareholders of the Company, holding 12.46% of the total common shares outstanding as of May 31, 2020. The Company cannot assure that when conflicts of interest arise, Mr. Yu will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest Mr. Yu may encounter in his capacity as a beneficial owner and director of the VIEs, on the one hand, and as a beneficial owner and director of the Company, on the other hand. The Company believes Mr. Yu will not act contrary to any of the contractual arrangements and the exclusive option agreement provides the Company with a mechanism to remove Mr. Yu as a beneficial shareholder of the VIEs should he act to the detriment of the Company. The Company relies on Mr. Yu, as a director and the chairman of the Company, to fulfill his fiduciary duties and abide by laws of the PRC and Cayman Islands and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and Mr. Yu, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings.

In addition, the current shareholders of New Oriental China and Xuncheng are also beneficial owners of the Company and therefore, have no current interest in seeking to act contrary to the contractual arrangements. However, to further protect the investors’ interest from any risk that the shareholders of New Oriental China may act contrary to the contractual arrangements, the Company, through Beijing Pioneer, entered into an irrevocable power of attorney with Century Friendship on December 3, 2012, which replaces the powers of attorney executed by Century Friendship on April 23, 2012. Through the power of attorney, Century Friendship entrusted Beijing Pioneer as its proxy to exercise its rights as the shareholder of New Oriental China with respect to an aggregate of 100% of the equity interests in New Oriental China.

The following financial statement balances and amounts of the VIEs were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions among the offshore companies, WFOEs and the VIEs in the Group:


	As of May 31
	2018		2019		2020
	US$		US$		US$
Total current assets		2,081,374		2,179,752		2,385,315
Total non-current assets		750,316		957,650		2,463,751

Total assets		2,831,690		3,137,402		4,849,066

Total current liabilities		1,674,857		1,900,440		2,395,977
Total non-current liabilities		13,782		18,607		1,066,541

Total liabilities		1,688,639		1,919,047		3,462,518


	For the years ended May 31,
	2018			2019			2020
	US$			US$			US$
Net revenues		2,417,203			3,056,537			3,453,555
Net income		479,190			575,614			575,210
Net cash provided by operating activities		711,591			536,631			675,015
Net cash used in investing activities		(429,265	)		(450,569	)		(780,310	)
Net cash used in financing activities		(96,429	)		(27,691	)		(45,188	)

The VIEs contributed an aggregate of 98.8%, 98.7% and 96.5% of the consolidated net revenues for the years ended May 31, 2018, 2019 and 2020, respectively. The Company’s operations not conducted through contractual arrangements with the VIEs primarily consist of the lease of its commercial property. As of the years ended May 31, 2018

2019 and 2020, the VIEs accounted for an aggregate of 71.2%, 67.5% and 74.0%, respectively, of the consolidated total assets, and 95.8%

90.5% and 93.9%, respectively, of the consolidated total liabilities. The assets not associated with the VIEs were primarily consist of cash and cash equivalents, prepaid expenses, short-term investments and long-term investments.

There are no consolidated VIEs’ assets that are collateralized for the VIEs’ obligations and can only be used to settle the VIEs’ obligations. There are no creditors (or beneficial interest holders) of the VIEs that have recourse to the general credit of the Company or any of its consolidated subsidiaries. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs.

Relevant PRC laws and regulations restrict the VIEs from transferring a portion of its net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 26 for disclosure of restricted net assets.

Significant Accounting Policies

12 Months Ended

May 31, 2020

Accounting Policies [Abstract]

Significant Accounting Policies

2.	SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”).

Basis of consolidation

The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and the VIEs’ subsidiaries and schools. The Company and its WFOEs have entered into contractual arrangements with the VIEs and its shareholders, which enable the Company to (1) have power to direct activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Company is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. All inter-company transactions and balances have been eliminated upon consolidation.

Use of estimates

The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenue and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include the purchase price allocation relating to business acquisitions, the valuation allowance for deferred tax assets, economic lives and impairment of property and equipment, impairment of goodwill, intangible assets, long-lived assets and long-term investments, fair value assessment of long-term investments, refund liability,

discount rate for leases,

fair value of underlying ordinary shares of Koolearn Holding before its IPO and mezzanine equity. Actual results could differ from those estimates.

Business combinations

Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred.

Consideration transferred in a business combinations is measured at the fair value as of the date of acquisition. Where the consideration in an acquisition includes contingent consideration, and the payment of which depends on the achievement of certain specified conditions post- acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and is 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.

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased.

Restricted cash

Restricted cash represents Renminbi (“RMB”) deposit in bank accounts as deposits for establishing new subsidiaries and schools. Restricted cash is classified as either current or non-current based on when the funds will be released in accordance with the terms of the respective agreement.

Term deposits

Term deposits consist of deposits placed with financial institutions with original maturities of greater than three months and less than one year.

Short-term investments

The Group’s short-term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs.

The Group reviews its held-to-maturity investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its short-term investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Group’s intent and ability to hold the investments. OTTI is recognized as a loss in the consolidated statements of operations.

Allowance for doubtful accounts

Accounts receivable represents amounts due from corporate customers of the Group’s various subsidiaries and schools. The Group provides allowance for doubtful accounts based on historical collection experience and a review of the current status of accounts receivable and other receivable. Accounts receivable and other receivable

are presented net of allowance for doubtful accounts.

Changes in the allowance for doubtful accounts were as follows:


	As of May 31 ,
	2018			2019			2020
	US$			US$			US$
Beginning balance		1,180			1,399			751
Charge during the year		576			146			329
Written-off		(357	)		(794	)		(374	)

Ending balance		1,399			751			706

Property and equipment, net

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:


Buildings			20-50 years
Transportation equipment			10 years
Furniture and education equipment			5 years
Computer equipment and software			3 years
Leasehold improvements			Shorter of the lease term or estimated useful life

Property and equipment also consist of construction in progress

as the Group constructs certain of its property and equipment. Construction in progress represents the costs incurred in connection with the construction of property and equipment. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location and in the condition necessary for its intended use. Construction in progress is transferred to specific property and equipment and depreciation of these assets commences when the assets are ready for their intended use.

Land use rights, net

Land use rights are recorded at cost less accumulated amortization and amortized on a straight-line basis over the remaining term of the land certificate, from 38.5 years to 50 years.

Intangible assets, net

Intangible assets are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives. Intangible assets with an indefinite useful life is not amortized. The Group performs valuation of the intangible assets arising from business combination to determine the fair value to be assigned to each asset acquired. The acquired intangible assets are recognized and measured at fair value and are expensed or amortized using the straight-line approach over the estimated economic useful lives of the assets.

The estimated useful lives of intangible assets are as follows:


Category	Estimated useful lives
Trade mark		10 years
License		20 years
Student base		1.75 years
Favorable lease		8.67 years
Courseware		3 years

Impairment of long-lived assets

The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. The Group did not record any impairment losses on long-lived assets during the years ended May 31, 2018, 2019 and 2020.

Goodwill, net

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. The Group’s goodwill as of May 31, 2018, 2019 and 2020 relates to its acquisition of certain kindergartens and schools. In accordance with Accounting Standard Codification 350, Goodwill and Other Intangible Assets, the recorded goodwill amounts are not amortized, but rather are tested for impairment annually or more frequently if there are indicators of impairment present.

Goodwill is tested for impairment at the reporting unit level on an annual basis (May 31 for the Group) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the stock prices, business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit.

On June 1, 2019, the Group early adopted Accounting Standards Update (“ASU”) 2017-04, Intangibles-Goodwill and Other (Topic 350) for the annual goodwill impairment test performed in

the

fiscal year 2020. Topic 350 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, which eliminated Step 2 from the goodwill impairment test on a prospective basis. The Group recognizes an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.

The Group recorded nil, US$5,245 and nil impairment losses during the years ended May 31, 2018, 2019 and 2020, respectively.

Long-term investments, net

The Group’s long-term investments include equity securities without readily determinable fair values, equity securities with readily determinable fair values, equity method investments and available-for-sale investments.

(a)

Equity securities

On June 1, 2018, the Group adopted ASU 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities and 2018-03 Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The Group adopted this ASU using a modified retrospective method and reclassified unrealized losses of US$97,929, net of tax on investment securities which were previously accounted for as available-for-sales investments, from accumulated other comprehensive loss to the opening balance of retained earnings. The adjustment related to the fair value measurement of equity securities which were previously classified as available-for-sales investments.

•

Equity securities with readily determinable fair values

Prior to the adoption of ASU 2016-01, equity securities that have readily determinable fair values and were not accounted for using the equity method or those that result in consolidation of the investee were classified as available-for-sale investments, and were carried at the fair value with unrealized gains and losses recorded in accumulated other comprehensive income/ (loss) as a component of shareholders’ equity. Upon the adoption of ASU 2016-01, the Company carries these equity securities at the fair value and any changes in the fair value are recognized in the consolidated statements of operations.

•

Equity securities without readily determinable fair values

Starting on June 1, 2018, with the adoption of ASU 2016-01, the Group elected a practicability exception to the fair value measurement for the equity securities without readily determinable fair values, under which these investments are measured at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer with the fair value change recorded in the consolidated statements of operations.

The Group reviews its equity securities without readily determinable fair value for impairment at each reporting period. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and the fair value in the consolidated statements of operations.

(b)

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% and 50%, and other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. For certain investments in limited partnerships, where the Group holds less than a 20% equity or voting interest, the Group may also have significant influence.

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 the consolidated statements of operations and accordingly adjusts the carrying amount of the investment.

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.

(c)

Available-for-sale investments

For investments in investees’ 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 the fair value, with unrealized gains and losses recorded in accumulated other comprehensive income/ (loss) as a component of shareholders’ equity.

Realized gains and losses and provision for decline in value determined to be other than temporary, if any, are recognized in the consolidated statements of operations.

The Group reviews its investments for OTTI based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees.

Long-term loan

Long-term loan is recognized at carrying amount. Interest expense is accrued over the estimated term of the facilities and recorded in the consolidated statements of operations.

Non-controlling interests and redeemable non-controlling interests

The Group’s consolidated financial statements include entities in which the Company has a controlling financial interest. Earnings or losses attributable to non-controlling interest shareholders of the consolidated affiliated companies are classified separately as “non-controlling interests” in the Company’s consolidated statements of operations.

Non-controlling interests in subsidiaries that are redeemable outside of the Company’s control for cash or other assets are classified outside of permanent equity. If the redemption event is probable to occur, the Company adjusts the redeemable non-controlling interests to the redemption value on each balance sheet date with the changes recognized as an adjustment to retained earnings, or in the absence of retained earnings, as an adjustment to additional paid-in capital.

Value added tax (“VAT”)

Pursuant to the PRC tax laws, in case of any product sales, generally the VAT rate is 3% of the gross sales for small scale VAT payer and 16% (or 13% starting April 1, 2019) of the gross sales for general VAT payer. Most of the subsidiaries of the Company are considered as general VAT payers for the sales of guidance materials and the intercompany sales of self-developed software. For general VAT payer, VAT on sales is calculated at 16% (or 13% starting April 1, 2019) on revenue

from product sales and paid after deducting input VAT on purchases. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Group’s consolidated financial statements.

The new enrollment system development services and other operating services, which were previously subject to business taxes, are now subject to VAT at the rate of 6%

of revenues. The non-academic educational programs and services in short-term training schools may choose the applicable simple VAT collection method and apply for a 3% VAT rate. The intercompany sales of self-developed software are subject to VAT at the rate

and the part in excess of the rate of

the Group can apply for refund upon collection by relevant tax authorities. The intercompany services related to self-developed software are subject to VAT at the rate

%. The sales of books are subject to VAT at the rate of

% since July 1, 2017, decreased to

% since May 1, 2018 and further decreased to

% since April 1, 2019.

Since January 2020, in accordance with Cai Shui [2020] No.8, due to the Novel coronavirus (“COVID-19”) pandemic, the VAT on certain services was temporarily exempted for the calendar year 2020.

Revenue recognition

On June 1, 2018, the Group adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606”), applying the modified retrospective method to all contracts that were not completed as of June 1, 2018. Results for the years ended May 31, 2019 and 2020 are presented under Topic 606, while revenues for the year ended May 31, 2018 are not adjusted and continue to be reported under ASC Topic 605, Revenue Recognition.

Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Group satisfies a performance obligation.

The Group generates substantially all of its revenues through educational programs and services with individual students in the PRC. In addition, the Group generates revenues from other services and the sales of books, which were insignificant for the years ended May 31, 2019 and 2020. The following table presents the Group’s revenues disaggregated by revenue

sources.

The Group’s revenue

are

reported net of VAT and surcharges.

The primary sources of the Group’s revenues are as follows:

(a)

Educational programs and services

The educational programs and services consist of K-12 AST, test preparation and other courses, pre-school education, primary and secondary school education and online education. Each contract of educational programs and services is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fee is generally collected in advance and is initially recorded as deferred revenue. Refunds are provided to students if they decide within the trial period that they no longer want to take the course. After the trial period, if a student withdraws from a class, usually only those unearned portion of the fee is available to be returned. Historically, the Group has not had material refunds.

The Group recognizes revenue from the educational programs and services proportionately when the services are delivered. US$3,040,741 of revenue

of educational programs and services was derived from K

12 AST, test preparation and other courses, and the remaining amount was derived from other segments.

(b)

Books and other services

Other service revenues are primarily derived from consulting services to students regarding overseas studies and study tours. Revenues are recognized when promised services are delivered to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those services. Each contract includes certain milestones and each of the milestones is considered a single performance obligation which is satisfied at the point of time when each of the milestone is reached. Upon the adoption of Topic 606, the Group estimates the variable consideration to be earned and recognizes revenues related to each milestone when the related milestone is achieved. Under the legacy revenue recognition standard, such revenues were deferred and recognized when student admission was reasonably assured. The Group sells books or other educational materials developed or licensed by the Group either through its own distribution channels or through third party distributors. Revenues are recognized when control of the promised goods is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods. All revenue

of books and other services w

ere

derived from other segments.

The Group’s contract assets consist of accounts receivable. The balance of contract assets amounted to US$3,137, US$3,300 and US$4,178 as of

May 31

2018, May 31, 2019 and May 31, 2020, respectively. The Group’s contract liabilities mainly consist of prepayments from customers (deferred revenue), with a balance of US$1,202,010, US$1,301,103 and US$ 1,324,384 as of

May 3

, 2018

May 31, 2019 and May 31, 2020, respectively. All contract liabilities at the beginning of the year ended May 31, 2020 were recognized as revenue

during the year ended May 31, 2020 and the all contract liabilities as of May 31, 2020 are expected to be realized in the following

year. The difference between the opening and closing balances of the Group’s contract liabilities primarily results from the timing difference between the Group’s satisfaction of performance obligation and the customer’s payment.

Refund liability mainly related to the estimated refunds that are expected to be provided to students if they decide they no longer want to take the course

. Refund liability estimates are based on historical refund ratio on a portfolio basis using the expected value method.

As of

May 3

, 2018

May 31, 2019 and May 31, 2020, refund liability amounted to US$68,185, US$76,221 and US$94,006, respectively, and are included in accrued expenses and other current liabilities.

Operating leases

Before June 1, 2019, the Group adopted ASC Topic 840 (“ASC 840”),

Leases

, and each lease is classified at the inception date as either a capital lease or an operating lease.

On June 1, 2019, the Group adopted the New Leasing Standard (“ASC 842”), using the modified retrospective transition method resulting in the recording of operating lease right-of-use (ROU) assets

1,254,595

and operating lease liabilities of

1,238,080

upon adoption. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The adoption of the new guidance did not have a material effect on the consolidated statements of operations. As of May 31, 2020, the Group recognized operating lease ROU assets of

1,425,466

and total lease liabilities

1,462,162

, including current portion at the amount of

384,239

The Group determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to be recorded in the balance sheets as ROU and lease liabilities, initially measured at the present value of the lease payments. The Group has elected the package of practical expedients, which allows the Group not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Group accounts for the lease and non-lease components separately. Lastly, the Company also has elected to utilize the short-term lease recognition exemption and, for those leases that qualified, the Group did not recognize operating lease ROU assets or operating lease liabilities.

As the rate implicit in the lease is not readily determinable, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease expenses are recorded on a straight-line basis over the lease term.

Advertising costs

The Group expenses advertising costs as they incurred. Total advertising expenses were US$55,936, US$72,386 and US$105,538 for the years ended May 31, 2018, 2019 and 2020, respectively, and have been included as part of selling and marketing expenses.

Government subsidies

The Group recognizes government subsidies as miscellaneous income when they are received because they are not subject to any past or future conditions, there are no performance conditions or conditions of use, and they are not subject to future return. Government subsidies received and recognized as miscellaneous income totaled US$2,945, US$3,684 and US$43,476, for the years ended May 31, 2018, 2019 and 2020,

respectively. The government subsidies income recognized for the year ended May 31, 2020 were mainly from the VAT exemption due to the COVID-19.

Foreign currency translation

The Company’s functional and reporting currency is the United States dollars (“U.S. dollars”). The financial records of the Company’s subsidiaries, the VIEs, the VIEs’ subsidiaries and schools located in the PRC are maintained in Renminbi (“RMB”), which is the functional currency of these entities. The financial records of the Company’s subsidiaries located in Hong Kong are maintained in U.S. dollars, which is the functional currency of these entities. The financial records of the Company’s subsidiaries located in United Kingdom are maintained in their local currency, the Great Britain Pound (“GBP”), which is the functional currency of these entities. The financial records of the Company’s subsidiary located in Australia are maintained in its local currency, the Australian Dollar (“AUD”), which is the functional currency of the entity. All financial records of the other entities are maintained in U.S. dollars, which is the functional currency of those entities.

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 translating to the functional currency of the Company, assets and liabilities are translated into the reporting currency at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates. Revenues, expenses, gain and loss are translated using the average rate of exchange in effect during the reporting period. Translation adjustments are reported and shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and the consolidated statements of comprehensive income.

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 RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents, restricted cash, and term deposits denominated in RMB amounted to US$989,070

US$1,105,190 and US$855,654 as of May 31, 2018

2019 and 2020, respectively.

Fair value

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Fair value of financial instruments

The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, term deposit, short-term investments, accounts receivable, amounts due from/to related parties, available-for-sale investments, equity security with/without readily determinable fair values, accounts payable, contingent consideration in acquisitions,

ong-term loan

and

income

tax payable. The Group carries its available-for-sale investments and equity securities with readily determinable fair values at fair value and carries equity securities without readily determinable fair values at cost, less impairment, plus or minus observable price changes in a similar transaction. The Group carries its contingent consideration in acquisitions at fair value which is determined based on the best estimation from the managements. The carrying amounts of the long-term loan approximate 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 approximate their fair values due to the short-term maturities of these instruments.

Net income per share

Basic net income per share is computed by dividing net income attributable to the holders of common shares 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 and NES 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 NES is computed using the treasury stock method. The effect of mezzanine equity is computed using the if-converted method.

Income taxes

The Group accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of operations in the period of change. Deferred tax assets are reduced by a valuation allowance when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized.

The Group accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Group believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Group recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses.

Comprehensive income

Comprehensive income includes net income, unrealized gain or loss on available-for-sale

investments

and foreign currency translation adjustment. Comprehensive income is reported in the consolidated statements of comprehensive income.

Share-based compensation

Share-based payments to employees and directors are measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expenses net of forfeitures on a straight-line basis over the requisite service period, with a corresponding addition to the additional paid-in capital. The Group uses the binomial option pricing model to measure the fair value of options granted, and the quoted market price of the common shares or the fair value of underlying ordinary shares of Koolearn Holding before its IPO by using the discounted cash flow method, to measure the fair value of options and NES granted to employees at each measurement date. The binomial option pricing model is adopted because the Group believes that considering the possibility of exercise an option over the life of the option, as affected by the reality of changing stock prices and non-constant risk free rates, would better reflect the measurement objective of relevant accounting literature.

The amount of compensation expenses recognized at any date is at least equal to the portion of the fair value of the awards that are vested as of that date. Forfeitures are recognized as they occur.

Concentration of credit risk

Financial instruments that potentially expose the Group to significant concentration of credit risk consist primarily of cash and cash equivalents, term deposits, restricted cash, short-term investments and accounts receivable. As of May 31, 2020, substantially all of the Group’s cash and cash equivalents, term deposits, restricted cash and short-term investments were deposited with financial institutions with high-credit ratings and quality. Accounts receivable are typically unsecured and are derived from revenues earned from customers in the PRC. The Group performs periodic credit evaluations and provides an allowance for doubtful accounts to reduce the accounts receivable balance to its net realizable value. The Group did not have any customers constituting 10% or more of the consolidated net revenues and accounts receivable in the fiscal years 2018, 2019 and 2020, respectively.

Recent accounting pronouncements adopted

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (ASC 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 companies, 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 July 2018, ASU 2016-02 was updated with ASU 2018-11, Targeted Improvements to ASC 842, which provides entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and

nonlease

components when certain conditions are met. Before ASU 2018-11 was issued, transition to the new lease standard required application of the new guidance at the beginning of the earliest comparative period presented in the financial statements.

The Group adopted this standard on June 1, 2019 and elected not to recast the comparative periods presented. In addition, the Group accounts for lease and non-lease components separately. The consolidated balance sheets and the consolidated statements of operations and cash flows for reporting periods beginning after

June

1, 2019 are presented under

ASC

842, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under

ASC

840.

The adoption did not have a material impact on the Group’s consolidated statements of operations or consolidated statements of cash flows, and the adoption of

ASC

842 did not result in a cumulative-effect adjustment to

the opening balance of

retained earnings. Further information is disclosed in Note 13.

In January 2017, the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB 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.

The update also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The update should be applied 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 that is a SEC filer 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 early adopted ASU 2017-04 for the annual goodwill impairment test

on June 1, 2019

Recently issued accounting pronouncements not yet adopted

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 ASU affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income.

This

ASU

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, this

ASU is

effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt this

ASU

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).

April 25, 2019, ASU 2016-13 was updated with ASU 2019-04, which clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments. ASU 2019-04 provides certain alternatives for the measurement of the allowance for credit losses (ACL) on accrued interest receivable (AIR). These measurement alternatives include (1) measuring an ACL on AIR separately, (2) electing to provide separate disclosure of the AIR component of amortized cost as a practical expedient, and (3) making accounting policy elections to simplify certain aspects of the presentation and measurement of such AIR. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-04 related to ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, and interim periods therein. An entity may early adopt ASU 2019-04 in any interim period after its issuance if the entity has adopted ASU 2016-13. The Group does not expect this standard to have a material impact on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value”. ASU 2018-13 removes and modifies existing disclosure requirements on fair value measurement, namely regarding transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. Additionally, ASU 2018-13 adds further disclosure requirements for Level 3 fair value measurements, specifically changes in unrealized gains and losses and other quantitative information. ASU 2018-13 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Group

does not expect any material

impact on its consolidated financial statements

and related disclosures as a result of adopting

this

standard

In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to the Related Party Guidance for Variable Interest Entities. ASU 2018-17 changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportional basis, rather than in their entirety. The Group is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements.

Business Acquisitions

12 Months Ended

May 31, 2020

Business Combinations [Abstract]

Business Acquisitions

3.	BUSINESS ACQUISITIONS

Business acquisition in fiscal year 2018:

Acquisition of Hangzhou Shengshen Technology Co., Ltd (“Hangzhou Shengshen”)

In October 2017, the Group acquired 100% equity interest in Hangzhou Shengshen, a K-12 education group located in Zhejiang, for a total consideration of US$11,012, in which US$5,309

US$2,043 and US$931 had been paid based on the payment schedule during the years ended May 31,

2018, 2019 and 2020, respectively. The acquisition was recorded using the acquisition method of accounting, accordingly, the acquired assets and liabilities were recorded at their fair value on the date of acquisition. The purchase price allocation was determined by the Group with assistance of an independent appraiser. The purchase price was allocated on the date of acquisition as follows:


	US$			Amortization period
Cash		3,571
Other current assets		704
Property and equipment		1,148			1-5 years
Intangible assets
Trademark		1,713			5 years
Student base		2,164			3 years
Goodwill		9,809
Deferred revenue		(5,566	)
Other current liabilities		(1,562	)
Deferred tax liabilities		(969	)

Total		11,012

Other acquisitions

During the year ended May 31, 2018, the Group also made several other business acquisitions, which were insignificant.

The total cash consideration of

these other

business acquisitions was US$6,992, in which

US$5,902,

US$381 and US$376 had been paid during the years ended May 31,

2018,

2019 and 2020, respectively. The cash and cash equivalents, intangible assets, goodwill, deferred revenue and non-controlling interests acquired from these business acquisitions were US$8,639, US$2,294, US$6,383, US$15,215 and US$1,683, respectively. The purchase price allocations were determined by the Group with assistance of an independent appraiser.

The following summarized unaudited pro forma results of operations for the years ended May 31, 2017 and 2018 assuming that these acquisitions during the year ended May 31, 2018 occurred as of June 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 June 1, 2016, nor is it indicative of future operating results.


	For the years ended May 31,
	2017		2018
	(unaudited) US$		(unaudited) US$
Pro forma net revenues		1,815,660		2,451,735
Pro forma net income attributable to New Oriental Education and Technology Group Inc.		275,685		296,697
Pro forma net income per share – basic		1.75		1.88
Pro forma net income per share – diluted		1.75		1.87

Business acquisition in fiscal year 2019:

Acquisition of Suzhou Hongyi Education Investment Co., Ltd. (“Suzhou Hongyi”)

In September 2018, the Group acquired 100% equity interests in Suzhou Hongyi, a company engaging in pre-school education, for a total consideration of US$42,608. The total consideration is contingent based on its financial performance in the transition period and capped to US$42,608.

During the years ended May 31, 2019, the Group paid US$27,458 and recorded a contingent consideration payable of US$15,150. The contingent consideration payable was recorded at fair value and was subsequently remeasured to fair value at each reporting period thereafter until it was settled by the Group in January 2020.

The acquisition was recorded using the acquisition method of accounting, accordingly, the acquired assets and liabilities were recorded at their fair value on the date of acquisition. The purchase price allocation was determined by the Group with the assistance of an independent appraiser.

The purchase price was allocated on the date of acquisition as follows:


	US$			Amortization period
Cash		1,321
Other current assets		2,020
Property and equipment		402			1-5 years
Intangible assets
Trademark		1,845			5 years
Student base		4,656			3 years
Goodwill		37,860
Other current liabilities		(3,871	)
Deferred tax liabilities		(1,625	)

Total		42,608

Asia Pacific Montessori Education Co., Ltd. (“Asia Pacific”)

November

2017, the Group invested US$11,216 in Asia Pacific, a kindergarten group located in Beijing and Hangzhou engaged in pre-school education, for a 35% equity interests. The investment in Asia Pacific was previously accounted for as a cost method investment prior to June 1, 2018 and was subsequently accounted as equity securities without readily determinable fair value after the adoption of ASU

2016-01. In December 2018, the Group acquired another 65% equity interests in Asia Pacific for a total consideration of US$12,600, in which US$8,784

and US$1,071

had been paid during the year

ended May 31, 2019

and 2020, respectiv

ely

The acquisition of 65% equity interest was accounted for as a step acquisition whereby the Group remeasured the fair value of its previously held equity interest in Asia Pacific. The fair value of the previous equity interest held by the Group was measured at fair value using a discounted cash flow method and taking into account certain factors including the projection of discounted future cash flow and an appropriate discount rate. The fair value remeasurement of the 35% equity interest in Asia Pacific resulted in a loss of US$4,298.

After this transaction, the Group held 100% equity interests of Asia Pacific. The acquisition was recorded using the acquisition method of accounting, accordingly, the acquired assets and liabilities were recorded at their fair value on the date of acquisition. The purchase price allocation was determined by the Group with the assistance of an independent appraiser. The purchase price was allocated on the date of acquisition as follows:


	US$			Amortization period
Cash		1,269
Other current assets		695
Property and equipment		251			1-5 years
Intangible assets
Trademark		2,085			5 years
Student base		1,064			3 years
Goodwill		17,043
Other non-current assets		2,086
Other current liabilities		(4,189	)
Deferred tax liabilities		(787	)
Fair value of the 35% equity interest s p reviously held		(6,917	)

Total		12,600

Other acquisitions

During the year ended May 31, 2019, the Group also made several other business acquisitions.

The cash consideration of

these other

usiness acquisition amounted to US$441, in which US$398 and US$43 had been paid during the year

ended May 31, 2019 and 2020

respectively. The cash and cash equivalents and goodwill acquired from those business acquisitions amounted to US$107 and US$729, respectively. The purchase price allocations were determined by the Group with the assistance of an independent appraiser.

The following summarized unaudited pro forma results of operations for the years ended May 31, 2018 and 2019 assuming that these acquisitions during the year ended May 31, 2019 occurred as of June 1, 2017. 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 June 1, 2017, nor is it indicative of future operating results.


	For the years ended May 31,
	2018		2019
	(unaudited) US$		(unaudited) US$
Pro forma net revenues		2,451,735		3,100,364
Pro forma net income attributable to New Oriental Education and Technology Group Inc.		296,697		238,794
Pro forma net income per share – basic		1.88		1.51
Pro forma net income per share – diluted		1.87		1.50

Business acquisition in fiscal year 2020:

During the year ended May 31,

2020, the Group

made

business

acqui

sition

for a total consideration of US$1,153. The Group

paid

an amount of US$346 based on the payment schedule during the year ended May 31, 2020 and the unpaid amount

US$807. The acquisition was recorded using the acquisition method of accounting, accordingly, the acquired assets and liabilities were recorded at their fair value on the date of acquisition.

The intangible assets and goodwill acquired from the acquisition

was

US$1,149 and US$2,815, respectively

The purchase price allocation was determined by the Group with the assistance of an independent appraiser.

Pro forma financial information is not presented for the business acquisition in fiscal year 2020 as it is immaterial to the reported results.

The revenue and net loss attributable to this acquisition included in the Company’s consolidated

statements

of operations since the acquisition date were US$829 and US$1,115, respectively.

Short-Term Investments

12 Months Ended

May 31, 2020

Investments, Debt and Equity Securities [Abstract]

Short-Term Investments

4.	SHORT-TERM INVESTMENTS

Short-term investments consisted of the following:


	As of May 31,
	2018		2019		2020
	US$		US$		US$
Held-to-maturity investments		1,623,763		1,668,689		2,318,280

Short-term investments

nly

consist of various financial products purchased from Chinese banks and trusts and are classified as held-to-maturity investments as the Group has the positive intent and ability to hold the investments to maturity. The maturities of these financial products range from one month to less than one year, with variable interest rates. They are classified as short-term investments on the consolidated balance sheets as their contractual maturity dates are equal to or less than one year.

The Group estimated that their fair value approximate their amortized costs. No OTTI loss was recognized for the years ended May 31, 2018, 2019 and 2020, respectively.

Prepaid Expenses and Other Current Assets, Net

12 Months Ended

May 31, 2020

Text Block [Abstract]

Prepaid Expenses and Other Current Assets, Net

5.	PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET

Prepaid expenses and other current assets, net, consisted of the following:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Advances to suppliers		43,913			45,665			49,547
Prepaid rents (a)		56,531			52,794			39,706
Interest receivables		23,647			23,856			33,488
Staff advances (b)		9,544			14,811			24,712
Receivable from third parties’ platforms		5,967			9,831			10,593
Rental deposits		10,953			9,539			10,326
Prepaid advertising fees		6,917			4,564			7,607
VAT recoverable		3,493			2,297			5,562
Deposits of advertising and decoration		3,342			3,020			2,594
Prepaid property taxes and other taxes		212			455			779
Others ( c )		18,490			33,093			14,639

		183,009			199,925			199,553
Less: allowance for other receivables		(914	)		(248	)		(149	)

		182,095			199,677			199,404

(a)

Prepaid rents represent the prepayment of rent related to leases less than 12 months.

(b)

Staff advances were provided to staff for travelling and business related use and are expensed as incurred.

(c)

Others primarily included prepaid maintenance fees, other receivables and other miscellaneous prepayments.

Property and Equipment, Net

12 Months Ended

May 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

6.	PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consisted of the following:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Buildings		156,324			142,047			178,782
Transportation equipment		9,936			9,565			9,172
Furniture and education equipment		128,670			153,674			195,262
Computer equipment and software		65,227			70,995			95,385
Leasehold improvements		349,953			451,105			579,231
Construction in progress		30,921			36,376			44,856

		741,031			863,762			1,102,688
Less: accumulated depreciation		(275,940	)		(342,106	)		(453,218	)
Exchange differences		(15,499	)		10,359			22,985

		449,592			532,015			672,455

Depreciation expenses for the years ended May 31, 2018, 2019 and 2020 were US$77,081, US$110,042 and US$146,310, respectively.

Land Use Rights, Net

12 Months Ended

May 31, 2020

Text Block [Abstract]

Land Use Rights, Net

7.	LAND USE RIGHTS, NET

Land use rights, net, consisted of the following:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Land use rights		5,315			7,955			7,696
Less: accumulated amortization		(1,417	)		(1,680	)		(1,842	)
Exchange differences		(113	)		130			183

Land use rights, net		3,785			6,405			6,037

Amortization expenses for land use rights for the years ended May 31, 2018, 2019 and 2020 were US$110, US$263 and US$162, respectively. The Group expects to recognize amortization expense

in aggregat

US$810 in coming

five years and US$5,227 thereafter.

Intangible Assets, Net

12 Months Ended

May 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

8.	INTANGIBLE ASSETS, NET

Intangible assets, net, consisted of the following:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Intangible assets with indefinite lives:
Trademark		256			238			229
Intangible assets with finite lives:
Trademark		5,575			9,109			9,170
Courseware		129			120			116
Student base		7,014			12,223			12,719
Favorable lease		732			679			657
License		415			415			415

		14,121			22,784			23,306

Less: accumulated amortization		(5,272	)		(8,985	)		(13,515	)
Exchange differences		(305	)		136			455

		8,544			13,935			10,246

Amortization expenses for the intangible assets for the years ended May 31, 2018, 2019 and 2020, were US$1,839, US$3,699 and US$4,530, respectively. As of May 31, 2020, the Group expects to

recognize

amortization expenses

US$4,068, US$2,684, US$1,774, US$789 and US$345 for the next five years, respectively, and US$357 thereafter.

Goodwill, Net

12 Months Ended

May 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Net

9.	GOODWILL, NET

Goodwill, net, consisted of the following:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Beginning balance		15,765			33,411			86,541
Acquisition		16,192			55,632			2,815
Exchange differences		1,454			(2,502	)		(2,063	)

Ending balance		33,411			86,541			87,293
Accumulated impairment		(1,682	)		(6,927	)		(6,927	)

Goodwill, net		31,729			79,614			80,366

The Group recorded nil, US$5,245 and nil impairment losses on goodwill for the years ended May 31, 2018, 2019 and 2020, respectively. The Group performed its annual goodwill impairment testing at the end of each reporting period or more frequently if events or changes in circumstances indicate that it might be impaired.

Long-Term Investments, Net

12 Months Ended

May 31, 2020

Schedule of Investments [Abstract]

Long-Term Investments

10.	LONG-TERM INVESTMENTS, NET

Long-term investments, net, consisted of the following:


	As of May 31,
	2018		2019		2020
	US$		US$		US$
Equity securities with readily determinable fair value:
Sunlands Online Education Group (“Sunlands”) (a)		134,423		37,802		21,440
Beijing Shengtong Printing Co., Ltd (“Shengtong”) (b)		9,261		6,839		4,066
Tarena International, Inc. (“Tarena”) (c)		9,610		3,200		2,190
Equity securities without readily determinable fair value:
Tibet Tianli Education and Technology Co., Ltd (“Tibet Tianli”) (d)		—		4,346		10,512
EEO Education Technology Co., Ltd. (“EEO”) (e)		9,767		9,069		8,774
Other investments (f)		28,740		30,663		30,797
Equity method investments:
New Oriental Education and Culture Industry Fund (Zhangjiagang) Partnership (Limited Partnership) (“Education Industry Fund”) (g)		—		67,834		67,057
VM EDU Fund I, L.P.(h)		—		—		56,734
Other investments (i)		9,131		20,191		27,716
Available-for-sale investments:
Shanghai Golden Education & Training Co., Ltd. (“Golden Finance”) (j)		86,937		61,963		59,947
Tianjin Uhozz Internet Technology Co., Ltd (“Uhozz”) (k)		12,826		16,350		16,350
Shanghai ALO7 Technology Co., Ltd. (“Alo7.com”) (l)		14,395		14,289		14,289
Lele Global Limited (“Lele”) (m)		9,157		11,251		11,680
Other available-for-sale investments (n)		109,086		120,907		99,549

		433,333		404,704		431,101

(a)

In January 2016, the Group invested US$12,310 in Sunlands, a company engaged in online education specific to vocational qualification training, for subscribing the convertible bonds. In July 2016, the Group converted all of the convertible bonds into redeemable preferred shares of Sunlands for a 4.9% equity interests. Additionally, the Group also invested an additional US$12,205 redeemable preferred shares for another 4.9% equity interest

in Sunlands during July 2016. Subsequent to the additional investment, the Group holds 9.8% equity interest in Sunlands.

On March 23, 2018, Sunlands was listed in the New York Stock Exchange Market. All of the preferred shares were converted to 529,426 Class A ordinary shares immediately upon the completion of the listing. Subsequent to the listing, the Group invested an additional US$10,000 and obtained 34,783 Class A ordinary shares in April 2018 and held 8% aggregate equity interests in Sunlands. Unrealized gains of US$101,779 was reported in other comprehensive income for the year ended May 31, 2018. Upon the adoption of ASU 2016-01, the investment was reclassified from available-for-sale investment to equity security with readily determinable fair value on June 1, 2018, and losses of US$ 96,621

and US$ 16,362

were recorded in loss from fair value change of long-term investments

for

the

years

ended May 31, 2019

2020

, respect

ively,

on the Group’s consolidated statements of operations.

(b)

In April 2015, the Group acquired 18% equity interest

in Beijing ROBOROBO Technology Co., Ltd. (“ROBOROBO”) for a cash consideration of US$4,356. Roborobo is a company applying various robots build training course for kids with different ages. In February 2017, the Group disposed all of the ownership in ROBOROBO, in exchange for 1.87% common shares issued by Shengtong, which is a listed A-share company in China. Realized gain of US$7,086 was recognized during the year ended May 31, 2017. The equity interests acquired in Shengtong were classified as equity security with readily determinable fair value. Unrealized loss of US$1,450 was reported in other comprehensive income for the year ended May 31, 2018. Upon the adoption of ASU 2016-01, the investment was reclassified from available-for-sale investment to equity security with readily determinable fair value on June 1, 2019,

losses

of US$1,605

and US$1,079

were

recorded in loss from fair value change of long-term investments for the

years

ended May 31, 2019

and 2020

, respectively

(c)

In March 2014, the Group invested US$13,500 in Tarena, a NASDAQ listed company that provides IT professional education services in China, for 3% equity interests. In July 2017, the Group sold 1% equity interest in Tarena to third parties and the realized gain of US$4,545 was recognized in investment income for the year ended May 31, 2018. Unrealized loss of US$7,040 was reported in other comprehensive income for the year ended May 31, 2018. Upon the adoption of ASU 2016-01, the investment was reclassified from available-for-sale investment to equity security with readily determinable fair value on June 1, 2019,

losses

of US$6,410 and US$1,010

were

recorded in loss from fair value change of long-term investments for the

years

ended May 31, 2019 and 2020

, respecti

vely

(d)

In December 2018, the Group invested

5% equity interests in Tibet Tianli

, a company engaged in the developing educational products. In April 2020, the Group further subscribed 5% equity interests. The Group accounted for the investment as equity securities without readily determinable fair values as Tibet Tian

is a private company without readily determinable fair value. As of May 31, 2020, the

roup hold

9.75%

of the total equity interests in Tibet Tianli after the dilution. For the years ended May 31, 2018, 2019 and 2020, no impairment loss was recorded from this investment.

(e)

In April 2017, the Group acquired 10% equity interest

in EEO, a company engaged in the business of developing on-line classroom product which were accounted for using the cost method because it is not in-substance common share for the year ended May 31, 2018. After the adoption of ASU 2016-01, the Group accounted for the equity investments using the measurement alternative when the equity method is not applicable and there is no readily determinable fair value for the investments. For the years ended May 31, 2018

2019 and 2020, no impairment loss was recorded in regard to the investment.

(f)

The Group holds several insignificant investments in third-party private companies and has no ability to exercise significant influence over the investees, which were accounted for using the cost method prior to the adoption of ASU 2016-01. After the adoption of ASU 2016-01, the Group accounted for these equity investments using the measurement alternative when

cost

method is not applicable and there is no readily determinable fair value for the investments. The Group was recorded nil, nil and US$ 9,096 impairment loss on these investment during the years ended May 31, 2018, 2019 and 2020, respectively.

(g)

In July 2018, Education Industry Fund was established with the total committed capital of US$224,000

. There are two general partners in the fund, which include

an entity

invested

by Mr. Yu

and an unrelated third party

. The Group participates in Education Industry Fund as a limited partner and invested US$75,000 in Education Industry Fund

as of May 31, 2020

. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and owns 33% interest in Education Industry Fund.

(h)

In June 2019, VM EDU Fund I, LP, a market-driven investment entity, was established with total committed capital of US$100,000.

The Group participates in VM EDU Fund I, LP as a limited partner and invested US$56,149 in VM EDU Fund I, LP. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and does not have control over VM EDU Fund I, LP.

(i)

The Group holds

from

6.86% to 50% equity interests in other 15 third-party companies through investments in their common shares or in-substance common shares.

ajority of the long-term investments are engaged

the

business of p

roviding

educational services. The Group accounts for these investment

under the equity method because the Group has the ability to exercise significant influence but does not have control over the investees, even though the Group holds less than 20% equity interests in some of the investees.

(j)

In April 2015, the Group invested 9.75% equity interests in Golden Finance, a company engaged in training programs business associated with finance and business management. In November 2015, the Group further subscribed

9.75%

equity interests. During the year ended May 31, 2019, the Group disposed of 7.2% equity interests in Golden Finance with total consideration of US$33,156, and the remaining shares were diluted to

12.3%. Gain of US$23,096

was recognized as realized gain from long-term investments in the consolidated statements of operations for the year ended May 31, 2019. The Group accounts for the investment as available-for-sale investments since the investee’s preferred shares held are redeemable and determined to be debt securities and measured at fair value.

(k)

In May 2015, the Group invested in Uhozz, a company providing oversea rental agency services, for 10% equity interests with redemption and liquidation preference

. In March 2018, the Group further subscribed 15.18% series B preferred shares. The Group accounted for the investment as available-for-sale investments since the investee’s preferred shares held are

redeemabl

and

determined to be debt securities and measured them at fair value.

(l)

In March 2012, the Group acquired a convertible promissory note from Alo7.com

for US$1,000

, which entitled the Group to automatically convert the note into equity security upon certain conditions were met.

July 2012, the Group converted the

US$1,000

promissory note into convertible redeemable preferred shares for a 3.4% equity interests in Alo7.com on an as-converted basis. In 2014, the Group further invested redeemable preferred shares into Alo7.com. As of May 31, 2020, the Company held a 14.3% equity interests in Alo7.com.

(m)

In September 2015, the Group invested in Lele, a company providing online learning and tutoring services for students from kindergarten through 12

grade, to acquire 48,796,296 convertible redeemable preferred shares for

8.5% equity interests. In December 2018, the Group further

invested series C preferred shares in Lele. As of May 31, 2020, the Group held a 7.8% equity interests in Lele. The investment was classified as available-for-sale investment as the Group determined the preferred shares were debt securit

due to substantive redemption right and measured the investment at fair value.

(n)

Other available-for-sale

investments

represent several insignificant individual investments classified as available-for-sale investments as of May 31, 2018, 2019 and 2020. Realized gain

of US$2,821, US$3,283 and US$407

were recorded in realized gain from long-term investments for the years ended May 31, 2018, 2019 and 2020, respectively.

The Group recognized impairment losses from long-term investments amounting to US$980, US$5,919 and US$31,750

for the years ended May 31, 2018, 2019 and 2020, respectively, as the Group believes the carrying value of these investments were no longer recoverable.

The Group recorded unrealized gain of US$129,545, US$19,483 and unrealized loss of US$748 from available for sale investments for the years ended May 31, 2018, 2019 and 2020, respectively.

Fair Value Measurement

12 Months Ended

May 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurement

11.	FAIR VALUE MEASUREMENT

Assets and liabilities measured at fair value on a recurring basis

The Group measures available-for-sale investments, equity securities with readily determinable fair value and contingent consideration payable at fair value on a recurring basis. The available-for-sale investments recorded in long-term investments include redeemable preferred shares, convertible note

and

special assets management plan-Guotai Yuanxin & New Oriental (“Assets Management Plan”). The equity securities with readily determinable fair value were common shares of three listed companies.

As of May 31,

2018,

2019 and 2020, 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:

As of May 31, 2018

Quoted Prices in

Significant Other

Significant

Active Market for

Observable

Unobservable

Identical Assets

Inputs

Description

Level 1

Level 2

Level 3

Total

US$

Long-term investments:

Available-for-sale investments

153,294

98,504

133,897

385,695


	As of May 31, 2019
	Quoted Prices in		Significant Other		Significant
	Active Market for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	Level 1		Level 2		Level 3		Total
	US$		US$		US$		US$
Long-term investments:
Equity securities with readily determinable fair values		47,841		—		—		47,841
Available-for-sale investments		—		78,879		145,881		224,760
Contingent consideration payable (Note 3)		—		—		15,150		15,150

Total		47,841		78,879		161,031		287,751

As of May 31, 2020

Quoted Prices in

Significant Other

Significant

Active Market for

Observable

Unobservable

Identical Assets

Inputs

Description

Level 1

Level 2

Level 3

Total

US$

Long-term investments:

Equity securities with readily determinable fair values

27,696

—

27,696

Available-for-sale investments

—

41,889

159,926

201,815

Total

27,696

41,889

159,926

229,511

The Company measured the fair value of its investments in common shares using the market approach based on the quoted stock price of its investees in the active market and has classified it as level 1 measurement.

The Company measured the fair value of its investment in convertible note and Assets Management Plan based on the respective principal and expected returns and has classified those as level 2 measurement.

For redeemable preferred shares that do not have a quoted market rate, the Company measured their fair value based on recent transactions or based on the market approach or income approach when no recent transactions are available. Recent transactions include the purchase price agreed by an independent third party for

a similar investment

and have been classified as level 2 measurement. When no recent transactions are available, a market approach or income approach will be used by the Company to measure fair value. The market approach takes into consideration a number of factors including market multiple and discount rates from traded companies in the industry and requires the Company to make certain assumptions and estimates regarding industry factors. Specifically, some of the significant unobservable inputs included the investee’s historical earning, discount of lack of marketability, investee’s time to initial public offering as well as related volatility. The income approach takes into consideration a number of factors including management projection of discounted future cash flow of the investee as well as an appropriate discount rate. The Company has classified those as level 3 measurement. The assumptions are inherently uncertain and subjective. Changes in any unobservable inputs may have a significant impact on the fair values.

The balance of contingent consideration payable as of May 31, 2019 is related to the acquisition of Suzhou Hongyi and the Company measured the fair value of its contingent consideration payable based on its best estimation on the financial performance of Suzhou Hongyi in the transition period as agreed in the acquisition agreement.

As of May 31, 2020

the

ompany has paid off this contingent consideration

with no gain or loss recogn

ized

The Group did not have any transfers between level 1 and level 2 fair value measurements during the periods presented. During the year ended May 31, 2018, the Group transferred one redeemable preferred share from level 3 to level 1 for a total of US$32,644. During the year

ended May 31, 2019

and 2020, the Group did not have

such transaction. During the year ended May 31, 2020, the Group transferred two investment

from level 3 to level 2 for a total of US$5,713 and two investments from level 2 to level 3 for a total of US$ 11,534.

The following table provides additional information about the reconciliation of the fair value measurements of assets and liabilities

using significant unobservable inputs (level 3).


	Level 3
	investments
	US$
Balance as of June 1 , 2017		123,029
Transfer to level 1 fair value measurements		(32,644	)
Unrealized gain		43,512

Balance as of May 31, 2018		133,897
Initial recognition		45,989
Unrealized loss		(18,855	)

Balance as of May 31, 2019		161,031
Initial recognition		10,000
Transfer from level 2		11,534
Transfer to level 2		(5,713	)
Unrealized loss		(16,926	)

Balance as of May 31, 2020		159,926

Assets and liabilities measured at fair value on a nonrecurring basis

Goodwill and acquired intangible assets are measured at fair value on a non-recurring basis when an impairment is recognize

The Group measures goodwill at fair value annually or whenever events or changes in circumstances indicate that the carrying amount of a reporting unit exceeds its fair value.

The fair value of goodwill is determined using discounted cash flows, and an impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Refer to Note 9 for the goodwill impairment loss recognized for the years ended May 31, 2018, 2019 and 2020.

The Group measures acquired intangible assets using the income approach—discounted cash flow method, when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group did not recognize any impairment loss related to intangible assets acquired for the years ended May 31, 2018, 2019 and 2020

The Group measures long-term investments (excluding the equity securities with readily determinable fair values and available-for-sale investments) at fair value on a nonrecurring basis only if an impairment or observable price adjustment is recognized in the current period. Refer to Note

for the long-term investments impairment loss recognized for the years ended May 31, 2018, 2019 and 2020.

For equity securities without readily determinable fair values, the fair value was determined using directly or indirectly observable inputs in the market place (Level 2 inputs). Whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable, the fair value of aforementioned long

term investments was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection of discounted future cash flow and the discount rate.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Accrued Expenses and Other Current Liabilities

12 Months Ended

May 31, 2020

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

12.	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following:


	As of May 31,
	2018		2019		2020
	US$		US$		US$
Accrued payroll		212,677		285,329		331,172
Refund liability (a)		—		76,221		94,006
Payable for purchase of property and equipment		45,590		44,445		65,335
Accrued advertising fees		8,548		11,934		20,231
Refundable fees received from students ( b )		11,541		15,783		15,955
Refundable deposits ( c )		7,290		11,074		14,819
Rent payable		18,210		23,643		13,857
Welfare payable		9,187		12,897		12,612
Amounts reimbursable to employees ( d )		16,157		19,366		12,674
Royalty fees payable (e)		4,410		7,724		6,696
Accrued professional service fees		1,134		1,943		6,199
Payable for investments and acquisitions		5,420		21,962		3,917
VAT payable		12,125		13,321		2,881
Other taxes payable		2,945		2,715		1,785
Others (f)		18,303		28,164		32,480

Total		373,537		576,521		634,619

(a)

The refund liability is recognized for variable amount of the considerations received from clients and recorded as refund liability in accordance with Topic 606 as described in Note 2.

(b)

Refundable fees received from students represent (1) the miscellaneous expenses other than tuition fees received from students which will be paid out on their behalf; and (2) tuition fees refundable to students for classes withdrawn.

(c)

Refundable deposits represent student deposits for dormitory or other fees that will be refunded upon graduation and student security deposits refunded upon completion of the study tour.

(d)

Amounts reimbursable to employees include travelling and the business related expenses.

(e)

Royalty fees payable relate to payments to content providers for on-line learning programs and those to counterparties for copyrights and resource sharing.

(f)

Others primarily include transportation expenses, utility fees, property management fees and other miscellaneous expenses payable.

Lease

12 Months Ended

May 31, 2020

Lessee Disclosure [Abstract]

Lease

13.

Lease

The Group has operating leases for learning centers, service centers and office spaces. Certain leases include renewal options and/or termination options, which are factored into the Group’s determination of lease payments when appropriate.

Operating lease cost for the year ended May 31, 2020 was $392,168, which excluded cost of short-term contracts. Short-term lease cost for the year ended May 31, 2020 was $9,028.

As of May 31, 2020, the weighted average remaining lease term was 4.7 years and

the

weighted average discount rate was 4.2% for the Group’s operating leases.

Supplemental cash flow information related to the operating leases is as follows:


	For the year ended May 31, 2020
	US$
Cash payments for the operating leases		371,734
ROU assets obtained in exchange for the new operating lease liabilities		639,545

A summary of maturity analysis of the annual undiscounted cash flows for the operating lease liabilities as of May 31, 2020 is as follows:


	As of May 31, 2020
	US$
Fiscal year ending
May 2021		407,854
May 2022		367,805
May 2023		302,990
May 2024		225,387
May 2025		130,190
Thereafter		176,984

Total future lease payments		1,611,210
Less: Imputed interest		(149,048	)

Present value of operating lease liabilities		1,462,162

As of May 31, 2020, the Group has lease

contracts

that

have

been entered into but not yet commenced

amounting

to $32,949, and these contracts will commence during fiscal year 2021.

As of May 31, 2019, the future minimum lease payments under the Group’s non-cancelable operating lease agreements based on ASC 840 are as follows:


	As of May 31, 2019
	US$
Fiscal year ending
May 2020		360,972
May 2021		337,751
May 2022		297,379
May 2023		212,814
May 2024		143,899
Thereafter		162,882

Total future lease payments		1,515,697

Long-Term Loan

12 Months Ended

May 31, 2020

Debt Disclosure [Abstract]

Long-Term Loan

14.	LONG-TERM LOAN

Facilities Agreement

On December 14, 2018, the Company entered into a three-year US$250,000 term and revolving facilities agreement (the “Facilities Agreement”) with a group of lenders. The facility, a US$100,000 three-year bullet maturity term loan (the “Facilities A”), a US$100,000 three-year revolving facility (the “Facilities B”) and an additional commitment of US$50,000, are priced at 165 basis points over London Interbank Offered Rate . The additional commitment of US$50,000 expired in April 2019. The interest is payable on a quarterly basis.

The Company paid a commitment fee of 0.3% per annum based on the undrawn portion of the facilities for the period commencing on 45 days after the falling of the Facilities Agreement to the end of the availability period for the Facilities A. The Company also paid a commitment fee of 0.5% per annum based on the undrawn portion of the facilities for all availability period for the Facilities B.

The debt issuance cost of $3,543 for the Facilities Agreement of 2018 was amortized over the period from December 2018 to December 2021, the termination date of the Facilities Agreement.

The Facilities Agreement contains financial covenants on the Group’s equity, debt and interest coverage ratio, and also includes acceleration clauses that are triggered upon the occurrence of an event of default. As of May 31, 2020, the Group is in compliance with its covenant.

As of May 31, 2020, the Group had made US$55,000, US$45,000 and US$20,000 draw down of the loan

under the Facilities A and Facilities B.


	As of May 31,
	2019		2020
	US$		US$
Secured Bank Loan		96,457		117,881
The carrying amounts of bank loans are repayable:
Within a period of more than one year but not exceeding two years		—		117,881
Within a period of more than two years but not exceeding five years		96,457		—

Redeemable Non-Controlling Interestes

12 Months Ended

May 31, 2020

Temporary Equity Disclosure [Abstract]

Redeemable Non-Controlling Interestes

15.	REDEEMABLE NON-CONTROLLING INTERESTES

On April 24, 2018, Koolearn Holding entered into

preferred share purchase agreements with a group of investors to issue an aggregate of 64,396,251 Series B convertible redeemable participating preferred shares (“Series B”) for an aggregate consideration of US$92,699. On May 17, 2018, Koolearn Holding entered into

preferred share purchase agreement with an investor to issue 90,416,181 Series A convertible redeemable participating preferred shares (“Series A”) with fair value of US$113,925.

The transactions were completed in May 2018. After the issuance of Series B and Series A preferred shares, the Group held approximately 68% equity interests in Koolearn Holding on a fully-diluted basis.

The Group classified Series B and Series A preferred shares as mezzanine equity since they are contingently redeemable at any time after December 31, 2019 by the holders in the event that (i) a qualified initial public offering (“QIPO”) has not occurred, or (ii) any material violation of applicable laws, or (iii) material breach of representations, warranties, undertaking or other obligations by Koolearn Holding’s group entities or shareholders, or (iv) at any time any other preferred shareholder requests for redemption. These matters are not certain to occur and are not solely within the control of Koolearn Holding. As of May 31, 2018, the Company determined the redemption is not probable and accordingly, did not adjust the carrying amount of the Series B and Series A preferred shares to the redemption value as Koolearn Holding was in the process of an initial public offering and had made an application for listing its securities on the Stock Exchange of Hong Kong Limited.

In March 2019, Koolearn Holding completed its QIPO in Hong Kong and the Group reclassified the mezzanine equity amounting to US$206,624 to additional paid-in capital and non-controlling interests.

The key terms of the Series B and Series A preferred shares are summarized as below:

Voting rights

Preferred shareholders have the right to one vote for each ordinary share into which each outstanding preferred share held could then be converted.

Dividends

Each holder of the Series A preferred shares and the Series B preferred shares shall be entitled to receive dividends and distributions from Koolearn Holding. Any dividend available for distribution shall be distributed ratably among all shareholders, on an as-converted basis.

Liquidation preference

In the event of any liquidation, all assets and funds of Koolearn Holding legally available for distribution to the shareholders (the “Liquidation Proceeds”), shall be distributed to the shareholders in the following manners:

(i)

Before any distribution or payment shall be made to the holders of any ordinary shares, the Series A shareholders, the Series B shareholders shall be entitled to receive for each outstanding Series B shares held, the higher of the following: (i) an amount equal to 100% of the Series B issue price, together with a 10% annual compound interest accrued thereon (calculated from the Series B issuance date to the date of the liquidation), plus all declared but unpaid dividends; or (ii) the pro rata share of the Liquidation Proceeds of the Series B shareholders calculated on an as-converted basis.

(ii)

Before any distribution or payment shall be made to the holders of any ordinary shares, each Series A shareholder shall be entitled to receive the higher of the following; (i) an amount equal to 120% of the Series A issue price, plus all declared but unpaid dividends; or (ii) the pro rata share of the Liquidation Proceeds of the Series A shareholders calculated on an as-converted basis.

(iii)

After distribution or payment in full in pursuant to (i) and (ii), the remaining Liquidation Proceeds shall be distributed ratably among the ordinary shareholders of Koolearn Holding in proportion to the number of ordinary shares they held.

Redemption

To the extent permitted by applicable law and upon the occurrence of redemption events as defined in the articles of association of the Company, the Company is contractually obligated to redeem all or part of the issued and outstanding preferred shares upon request.

Conversion

Each preferred share shall automatically be converted into ordinary share of Koolearn Holding based on the then-effective conversion ratio (the “Conversion Price”) applicable to such preferred share (i) upon the approval of Series A shareholders with respect to the conversion of Series A preferred shares, (ii) upon the approval of Series B shareholders with respect to the conversion of the Series B preferred shares, or

(iii) immediately prior to the occurrence of a QIPO.

The Conversion Price of the preferred shares was initially the issuance price of the preferred shares at an initial conversion ratio of 1:1, and shall be adjusted from time to time for proportional adjustment (the “Proportional Adjustment”), which means the Conversion Price adjustment in the event that if at any time the number of outstanding ordinary shares proportionately changes.

Common Shares and Treasury Stock

12 Months Ended

May 31, 2020

Class of Stock Disclosures [Abstract]

Common Shares and Treasury Stock

16.	COMMON SHARES AND TREASURY STOCK

As of May 31, 2018, 2019 and 2020, the Company had 300,000,000 common shares authorized with par value of US$0.01.

The movement of the outstanding common shares and treasury stock is listed as below.


	Number of common share			Number of treasury stock
Shares outstanding as of June 1 , 2017		157,687,444			691,943
Reissuance of treasury stock for NES		631,966			(631,966	)
Reissuance of treasury stock for the exercises of options		500			(500	)

Shares outstanding as of May 31, 2018		158,319,910			59,477

Reissuance of treasury stock for NES		59,477			(59,477	)
Issuance of common share for NES		422,327			—
Shares repurchase		(952,000	)		952,000

Shares outstanding as of May 31, 2019		157,849,714			952,000

Reissuance of treasury stock for NES		690,366			(690,366	)

Shares outstanding as of May 31, 2020		158,540,080			261,634

Share-Based Compensation

12 Months Ended

May 31, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

17.	SHARE-BASED COMPENSATION

2016 Share Incentive Plan

The Company adopted 2016 Share Incentive Plan (“2016 Share Incentive Plan”) in January 2016 to provide incentives to employees and directors after the expiration of the previous 2006 Share Incentive Plan. Under the 2016 Share Incentive Plan, the Company is authorized to issue up to 10,000,000 common shares pursuant to awards (including options) granted to its employees, directors and consultants. The 2016 Share Incentive Plan is effective upon its adoption by the board and continue in effect for a term of ten years unless sooner terminated. Since the adoption of the 2016 Share Incentive Plan, the Company has granted a total of 3,132,665 NES, among which 1,485,630, 1,029,304 and 181,715 were granted in the years ended May 31, 2018

2019 and 2020, respectively. 47,006, 77,224 and 143,744 shares were forfeited during the years ended May 31, 2018

2019 and 2020, respectively.

The Company’s board of directors may at any time amend, suspend or terminate the 2016 Share Incentive Plan. The following amendments to the 2016 Share Incentive Plan require approval from the shareholders (i) increase of the number of shares available under the 2016 Share Incentive Plan, (ii) extension of the term of the 2016 Share Incentive Plan, (iii) extension of the exercise period of an option beyond ten years, and (iv) any other amendments about which shareholders’ approval are necessary and desirable under applicable laws or stock exchange rules. The 2016 Share Incentive Plan is effective upon its adoption by the board and continue in effect for a term of ten years unless sooner terminated.

As of May 31, 2019, all options were fully vested and exercised.

The total intrinsic value of share options exercised during the years ended May 31, 2018, 2019 and 2020 were US$38, nil and nil, respectively. As of May 31, 2020, there were no unrecognized compensation

expenses

related to share options granted.

As of May 31, 2020

11,285,510 common shares out of 17,000,000 common shares were held by the depositary bank, and 2,257,092 shares out of 6,198,349 treasury stock had been issued to employees and directors upon the exercise of their vested share options.

The exercise price of share options is at least 100% of the common share fair value on the date of the grant. The term of a share option is up to ten years from the date of grant. The share options generally vest over three years at six-month vesting increments per year.

NES

During the year ended May 31, 2020, 690,366 treasury stock had been issued to employees and directors upon the vesting of their NES. As of May 31, 2020, 5,136,817 common shares out of 17,000,000 common shares held by the depositary bank had been issued to employees and directors upon the vesting of their NES, and 3,679,623 shares out of 6,198,349 treasury stock had been reissued to employees and directors upon the vesting of their NES.

The NES activities under the 2016 Share Incentive Plan for the year ended May 31, 2020 are summarized as follows:


	Number of NES			Weighted- average grant date fair value and intrinsic value
				US$
NES outstanding as of June 1, 2019		1,908,900			66.89
Granted		181,715			0
Vested		(690,366	)		0
Forfeited		(143,744	)		0
NES outstanding as of May 31, 2020		1,256,505			70.73

NES vested and expect to vest as of May 31, 2020		1,256,505

The total fair value of NES vested during the years ended May 31, 2018, 2019 and 2020 were US$24,167, US$39,869 and US$49,645, respectively. The weighted average grant date fair value of NES granted during the years ended May 31, 2018, 2019 and 2020 were US$82.75, US$52.75 and

$108.38, respectively. As of May 31, 2020, the total unrecognized compensation expenses for NES of US$20,404 are expected to be recognized over a weighted average period of 0.92 years.

The total compensation

expenses are

recognized on a straight-line basis over the respective vesting periods. The Group recorded the related compensation

expenses

of US$57,443, US$63,315 and US$41,326 for the years ended May 31, 2018, 2019 and 2020, respectively.

Koolearn Pre-IPO Share Option Scheme

On July 13, 2018, the board of directors of Koolearn Holding approved an employee’s share option plan (the “

Pre-IPO

Option Scheme”).

The overall limit on the number of shares which may be issued upon exercise of all outstanding options granted and yet to be exercised under the

Pre-IPO

Option Scheme

at any time must not exceed 47,836,985 (representing approximately 5.23% of the total number of shares in issue immediately before the date of the commencement of dealings in the shares on the Stock Exchange (without taking into account any shares that may be issued upon the Listing and any over-allotment option).

On March 7, 2019, pursuant to the list of grantees and respective numbers of options approved by the board of directors of Koolearn Holding, Koolearn Holding granted a total of 47,836,985 options to 144 grantees, including the directors, senior management of Koolearn Holding, contractors and other employees of the Group. The exercise period is 6 years from the listing date of Koolearn Holding and the exercise price is US$1.13.

The movements of share options under the

Pre-IPO

Option Scheme

for the year

ended

May 31,

2019

and 2020

are summarized as follows:


	Number of share options			Weighted average exercise price per option (US$)
Granted on March 7, 2019		47,836,985			1.13
Forfeited		(3,065,500	)		1.13
Cancelled		(31,000	)		1.13

Outstanding as of May 31, 2019		44,740,485			1.13

Forfeited		(2,360,000	)		1.13

Cancelled		(3,129,000	)		1.13

Outstanding as of May 31, 2020		39,251,485			1.13

The grant date fair value of the option per share is US$0.52 and the estimated fair value of the share options granted was US$21,613 on March 7, 2019.

The Group used the discounted cash flow method to determine the fair value of underlying ordinary shares of Koolearn Holding with the assistance of an independent

valuation specialist

. Based on the fair value of the underlying ordinary shares of Koolearn Holding, the Group used the binomial option-pricing model to determine the fair value of the share option as of the grant date. Option valuation model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying shares, and changes in the subjective input assumptions can materially affect the fair value estimate of share options.


	March 7, 2019 Pre-IPO Share OptionScheme
Weighted average share price	US$	1.19
Exercise price	US$	1.13
Expected volatility		46.8	%
Expected life		6 years
Risk-free rate		2.49	%
Expected dividend yield		0.00	%

Koolearn Holding recorded the related compensation expense of US$8,021

and US$ 8,391

for the year

ended May 31, 2019

and 2

020, respectively

, in relation to the share options issued under the

Pre-IPO

Option Scheme

Koolearn Post-IPO Share Option Scheme

On January

, 20

, the board of directors of Koolearn Holding approved an employee’s share option plan (the “Post-IPO Share Option Scheme”).

On January 29, 2020, pursuant to the list of grantees and respective numbers of options approved by the board of directors of

Koolearn Holding, Koolearn Holding

granted a total of 40,000,000 options to 552 grantees, including the directors, senior management and other employees of

Koolearn Holding

The movements of share options under the Post-IPO Share Option Scheme are summarized as follows:


	Number of share options			Weighted average exercise price per option (US$)
Granted on January 29, 2020		40,000,000			3.26

Forfeited		(1,801,000	)		3.26

Outstanding as of May 31, 2020		38,199,000			3.26

Koolearn Holding has used the closing price of the shares as stated in the daily quotations sheet issued by the Stock Exchange on the grant date as the fair value of underlying ordinary shares of Koolearn Holding. Based on the fair value of the underlying ordinary shares of Koolearn Holding, Koolearn Holding has used binomial option-pricing model to determine the fair value of the share option as of the grant date with the assistance of an independent valuation specialist Option valuation model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying shares, and changes in the subjective input assumptions can materially affect the fair value estimate of share options.


	January 29, 2020 Post- IPO Share Option Scheme
Weighted average share price	US$	3.49
Exercise price	US$	3.26
Expected volatility		52	%
Expected life		10 years
Risk-free rate		1.44	%
Expected dividend yield		0.00	%

Koolearn Holding recognized the total expense of US$12,340 for the year ended May 31, 2020 in relation to

the

Post-IPO

Share Option

Scheme

Income Taxes

12 Months Ended

May 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

18.	INCOME TAXES

Cayman Islands & BVI

The Company and Koolearn Holding are tax-exempted companies incorporated in the Cayman Islands. Under the current law of the Cayman Islands, the Company and Koolearn Holding are not subject to income, corporate or capital gains tax, and the Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to the Cayman Islands income or corporation tax.

The Company’s subsidiary, Abundant

State Limited

, is incorporated in BVI and is not subject to income tax.

United States (“US”)

Walkite International Academy (U.S.A.) Co.,Ltd.

and Blingabc

Limited

are incorporated in the U.S.A. and are subject to federal income tax and state income tax at 21% and 8.84%, respectively.

In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code including, but not limited to, (1) reducing the U.S. federal corporate tax rate, (2) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries that is payable over eight years, and (3) bonus depreciation that will allow for full expensing of qualified property. The impact of the Tax Act is not material to the Group’s operation and resulted in a decrease in income tax rate from 35% before January 1, 2018 to 21% after January 1, 2018 for tax and income earned as determined in accordance with the relevant tax rules and regulations.

United Kingdom (“UK”)

Walkite International Academy Co., Ltd.

and

New Oriental Vision Overseas Consulting (U.K.) Ltd

are incorporated in the UK and are subject to income tax rate at 19%.

Australia

New Oriental Vision Overseas Consulting Australia Pty Ltd.

is incorporated in Australia and is subject to income tax rate at 30%.

Cananda

Walkite International Academy (Canada) Co., Ltd

and

New Oriental Vision Overseas Consulting Canada Inc.

is incorporated in Cananda and is subject to income tax rate at 26.5%.

Hong Kong

Smart Shine, Winner Park, Elite Concept, One World

Limited,

Garden House

Limited,

Koolearn Tech and Asia Pacific are incorporated in Hong Kong. Under the current Hong Kong Inland Revenue Ordinance, from the year of assessment 2018/2019 onwards, the subsidiaries in Hong Kong are subject to profits tax at the rate of 8.25% on assessable profits up to HK$2 million; and 16.5% on any part of assessable profits over HK$2 million. Elite Concept and Smart Shine received special dividend of US$69,567, US$43,420 and US$59,696 during the years ended May 31, 2018, 2019 and 2020, respectively. Withholding taxes of US$6,957, US$2,171 and US$

3,062 in connection with the dividends were fully paid during the years ended May 31, 2018, 2019 and 2020, respectively.

No provision

in Winner Park, One World Limited, Garden House Limited, Koolearn Tech and Asia Pacific for Hong Kong profit tax has been made in the consolidated financial statements as they do not have any assessable income for the years ended May 31, 2018, 2019 and 2020.

PRC

The Company’s PRC subsidiaries, the VIEs, the VIE’s subsidiaries and schools are subject to 25% standard enterprise income tax except for those accepted as qualified for small-scale enterprises, or granted preferential tax treatment.

Significant components of provision for income taxes for the years ended May 31, 2018, 2019 and 2020 were as follows:


	For the years ended May 31,
	2018			2019			2020
	US$			US$			US$
Current:
PRC		72,785			103,031			142,992

Deferred:
PRC		(13,377	)		(17,317	)		(8,630	)

Total provision for income taxes		59,408			85,714			134,362

Enterprises that qualify as a high and new technology enterprise (“HNTE”) are subject to a tax rate of 15%. Beijing Right Time, Beijing Joy Trend, Beijing Decision, Beijing Hewstone and Xuncheng’s HNTE certificates terminated as of December 31, 2019, and these enterprises are in the process of renewing their qualification of “high and new technology enterprises.” Once their renewals are completed, these companies will be eligible for a favorable enterprise income tax rate of 15% starting January 1, 2020. Beijing Smart Wood, Beijing Pioneer, Beijing Top, Beijing Shenghe, Dogwood and Kuxue Huisi continued to qualify as HNTE and were subject to a tax rate of 15% during the year ended May 31, 2020.

Enterprises that qualify as the newly established software enterprise (“NESE”) are exempt from the Enterprise Income Tax (“EIT”) for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years. Beijing Magnificence, Beijing Jinghong, Beijing

Zhiyuan Hangcheng

Software Technology Company Limited

Beijing Chuangying

Oriental Technology Co., Ltd

and Beijing Zhihong

Oriental Technology Co., Ltd

were qualified as NESE and enjoyed the EIT tax benefit from January 2015 to December 2019, from January 2017 to December 2021, from January 2019 to December 2023

, from January 2019 to December 2023,

and from January 2019 to December 2023, respectively.

Beijing Magnificence has been recognized as HNTE in December 2019. This company

entitled to enjoy the tax rate of

15% since January 1, 2020.

Since its establishment through May 31, 2020, Beijing Haidian School was not required by the governing tax bureau to pay any EIT. If Beijing Haidian School is required to pay EIT in the future, this could have material impact to the Group’s consolidated financial statements. However, the Group believes that it is more likely than not that any change to the tax treatment of Beijing Haidian School shall be prospectively applied.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group’s deferred tax assets and liabilities were as follows:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Deferred tax assets
Allowance doubtful accounts		1,965			3,523			4,677
Accrued expenses		32,253			43,212			55,172
Net operating loss carry-forward		14,611			22,299			43,049
Tax impact from the long term investments disposed to a related party		—			1,521			1,521

Total deferred tax assets		48,829			70,555			104,419

Less: valuation allowance		(5,506	)		(9,088	)		(41,095	)

Total deferred tax assets, net		43,323			61,467			63,324

Deferred tax liabilities
Acquired assets		3,308			5,038			3,598
Tax impact from the unrealized gain on available-for-sale investments		8,825			13,743			8,308

Total deferred tax liabilities		12,133			18,781			11,906

The Group does not file combined or consolidated tax returns, therefore, losses from individual subsidiaries or the VIEs may not be used to offset other subsidiaries’ earnings within the Group.

The Group determined the valuation allowance on an entity by entity basis. The valuation allowance, which is primarily related to entities with net operating loss carry-forwards for which the Company does not believe it will ultimately be realized, was US$5,506 US$9,088 and US$41,095 as of May 31, 2018

2019 and 2020, respectively.

As of May 31, 2020, the Group had net operating loss carried-forwards of US$202,077 from the Company’s PRC subsidiaries, the VIEs, the VIE’s subsidiaries and schools which will expire on various dates from May 31, 2021 to May 31, 2025.

A reconciliation of the effective tax rates from 25% statutory tax rates for the years ended May 31, 2018, 2019 and 2020 was as follows:


	For the years ended May 31,
	2018			2019			2020
	%			%			%
Statutory tax rate		25.00			25.00			25.00
Effect of not deductible expenses for tax purposes		4.35			16.70			5.93
Tax effect of exempt entities		(8.10	)		(6.91	)		(5.50	)
Effect of tax holiday		(5.70	)		(9.73	)		(5.13	)
Changes in valuation allowance		0.43			1.13			6.53
Effect of dividend withholding tax		0.66			0.77			0.63

Effective tax rate		16.64			26.96			27.46

If the WFOE and certain subsidiaries and schools of the VIEs did not enjoy income tax exemptions and preferential tax rates for the years ended May 31, 2018, 2019 and 2020, the increase in income tax expenses and the decrease in net income per share amounts would be as follows:


	For the years ended May 31,
	2018		2019		2020
	US$		US$		US$
Increase in income tax expenses		48,444		51,002		50,809
Decrease in net income per share - basic		0.31		0.32		0.32
Decrease in net income per share - diluted		0.31		0.32		0.32

Under the New Income Tax Law effective from January 1, 2008, the rules for determining whether an entity is resident in the PRC for tax purposes have changed and the determination of residence depends among other things on the “place of actual management”. If the Group, or its non-PRC subsidiaries, were to be determined as a PRC resident for tax purposes, they would be subject to a 25% income tax rate on their worldwide income including the income arising in jurisdictions outside the PRC. The Group does not believe that its legal entities organized outside of the PRC are considered the PRC residents.

If the Company were to be a non-resident for

the

PRC tax purposes, dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax. In the case of dividends paid by the PRC schools and subsidiaries to their foreign investors, the withholding tax would be 10%, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. During the year ended May 31, 2018, Beijing Hewstone, Shanghai Smart Words, Beijing Smart Wood and Beijing Pioneer paid US$6,957 withholding tax when they paid a special dividend to their parent companies, Elite Concept and Smart Shine. In November 2018, Elite Concept started to enjoy a preferential tax rate of 5% under tax treaty treatment.

During the year ended May 31, 2019, Beijing Decision paid US$2,171 withholding tax when they paid a special dividend to Elite Concept

During the year ended May 31,

2020

, Beijing Decision

, Beijing Hewstone, Beijing Right Time, Beijing Top and Beijing Magnificence

paid US$3,062 withholding tax when they paid a special dividend to Elite Concept.

Aggregate undistributed earnings of the Company’s PRC subsidiaries and the VIEs that are available for distribution were US$1,819,317 US$1,972,912 and US$2,279,550 as of May 31, 2018, 2019 and 2020, respectively. Upon distribution of such earnings, the Company will be subject to the PRC EIT, the amount of which is impractical to estimate. The Company did not record any withholding tax on any of the aforementioned undistributed earnings because the relevant subsidiaries and the VIEs do not intend to declare dividends and the Company intends to permanently reinvest it within the PRC. Additionally, no deferred tax

liabilities were

recorded for taxable temporary differences attributable to the undistributed earnings because the Company believes the undistributed earnings can be distributed in a manner that would not be subject to income tax.

The Group did not identify any significant unrecognized tax benefits for the years ended May 31, 2018, 2019 and 2020. The Group did not incur any significant interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months. The Group has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods.

According to the PRC Tax Administration and Collection Law, the tax authority may require the taxpayer or the withholding agent to make delinquent tax payment within three years if the underpayment of taxes is resulted from the tax authority’s act or error. No late payment surcharge will be assessed under such circumstances. The statute of limitation will be three years if the underpayment of taxes is due to the computational errors made by the taxpayer or the withholding agent. Late payment surcharge will be assessed in such case. The statute of limitation will be extended to five years under special circumstances which are not clearly defined (but an underpayment of tax liability exceeding US$16 (RMB0.1 million) is specifically listed as a “special circumstance”). The statute of limitation for transfer pricing related issue is ten years. There is no statute of limitation in the case of tax

evasion

. Therefore, the Group’s PRC domiciled entities are

subject

to examination by the PRC tax authorities based on the above.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Net Income Per Share

12 Months Ended

May 31, 2020

Earnings Per Share [Abstract]

Net Income Per Share

19.	NET INCOME PER SHARE

The computation of basic and diluted net income per common share for the years ended May 31, 2018, 2019 and 2020 was as follows:


	For the years ended May 31,
	2018		2019		2020
	US$		US$		US$
Numerator:
Net income attributable to New Oriental Education & Technology Group Inc.’s shareholders		296,130		238,065		413,333

Net income available for future distribution		296,130		238,065		413,333

Denominator
Weighted average common shares outstanding - b asic		158,168,794		158,293,890		158,429,576

Plus: incremental weighted average common shares from assumed vesting of NES using the treasury stock method		387,706		745,455		1,107,314

Weighted average common shares outstanding - d iluted		158,556,500		159,039,345		159,536,890

Net income per common share
- Basic		1.87		1.50		2.61
- Diluted		1.87		1.50		2.59

There was no employee share options

included

from the dilutive share calculation for the years ended May 31, 2018, 2019 and 2020 due to anti- dilutive effects.

Related-Parties Transactions

12 Months Ended

May 31, 2020

Related-Parties Transactions

20.	RELATED-PARTIES TRANSACTIONS

The Group had the following balances and transactions with related parties:

(a)

Balances:


			Amounts due from related parties, current As of May 31,						Amounts due to related parties, current As of May 31,
	Notes	Relationship	2018		2019		2020		2018		2019		2020
			US$		US$		US$		US$		US$		US$
Metropolis Holding China Limited (“Metropolis”)	(1)	Company controlled by Mr. Yu		787		15,581		1,951		—		—		159
Beijing Dianshi Jingwei Technololy Co., Ltd (“Dianshi Jingwei”)	(2)	Equity method investee		—		15,211		—		—		—		—
Education Industry Fund		Equity method investee		—		8,692		—		—		—		—
Others	( 3 )			808		3,160		1,433		30		472		1,431

Total				1,595		42,644		3,384		30		472		1,590


			Amounts due from related parties, non- current As of May 31,
	Notes	Relationship	2018		2019		2020
			US$		US$		US$
Metropolis	(1)	Company controlled by Mr. Yu		2,226		1,204		1,550
Dianshi Jingwei	(2)	Equity method investee		—		—		21,024
Others	( 3 )			—		—		135

Total				2,226		1,204		22,709

(b)

Transactions:


			Rental expenses For the years ended May 31,
			2018		2019		2020
			US$		US$		US$
Metropolis	(1)	Company controlled by Mr. Yu		7,899		7,888		9,615


			Loans provided to related parties For the years ended May 31,
			2018		2019		2020
			US$		US$		US$
Dianshi Jingwei	(2)	Equity method investee		—		61,155		7,128

Total				—		61,155		7,128


			Revenues For the years ended May 31,
			2018		2019		2020
			US$		US$		US$
Beijing Fishpond Software Technology Co., Ltd. (“Fishpond”)		Equity method investee		—		1,060		438
Others	( 4 )			92		—		41

Total				92		1,060		479


			Cost For the years ended May 31,
			2018		2019		2020
			US$		US$		US$
EEO		Equity securities without readily determinable fair values investee		—		2,408		3,239
Beijing Dongfang Heli Investment and Developement Ltd (“Dongfang Heli”)		Equity method investee		—		1,064		1,700
Others	( 4 )			—		460		31

Total				—		3,932		4,970

(1)

2020

, the current and non-current amounts due from Metropolis were US$1,951 and US$

1,550, respectively, which represented prepaid rent

related to a short-term lease

and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by the Group’s board of directors.

(2)

In April 2016, the Group sold 51% of the equity interest of its fully-owned subsidiary Dianshi Jingwei and Dianshi Jingwei became an equity method investee of the Group. As of May 31, 2020, amounts due from Dianshi Jingwei included five outstanding loans provided by the Group with annual interest rate of 10%. The loans were initially granted in 2018 but were extended several times and recorded as non-current assets as of May 31, 2020. During the year ended of May 31, 2020, no interests were received by the Group. The extended loans were personally guaranteed by Mr. Yu and Mr. Yunhai Jia (“Mr. Jia”), the chief executive officer of Dianshi Jingwei.

According to the loan agreements, if Dianshi Jingwei defaults on the loan payments and interests, the Group has the right to convert the unpaid loans into Dianshi Jingwei’s equity. During the year ended of May 31, 2020, Dianshi Jingwei repaid US$701 to the Group.

(3)

As of May 31, 2018, 2019 and 2020, the balance in “others” included the receivables from and payables to long-term investees.

(4)

As of May 31, 2018, 2019 and 2020, the balance in “others” included the revenue and cost from long-term investees.

Commitments and Contingencies

12 Months Ended

May 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

21.	COMMITMENTS AND CONTINGENCIES

Capital commitments

As of May 31, 2020, the future minimum capital commitments were as follows:


	US$
		4,148
Capital commitment for the purchase of property and equipment		28,901

Capital commitment for leasehold improvements		33,049

Contingent liabilities

The Group has been named in a number of lawsuits arising in its ordinary course of business. Although the outcome of those lawsuits are uncertain, the Group does not believe the possibility of loss is probable. The Group is unable to estimate a range of loss, if any, that could result if there would be an adverse decision, as such, and the Group has not accrued any liabilities.

Non-controlling Interests

12 Months Ended

May 31, 2020

Noncontrolling Interest [Abstract]

Non-controlling Interests

22.	NON-CONTROLLING INTERESTS


	Non-controlling interests
	US$
Balance as of June 1, 2017		39,130
Capital contribution from non-controlling interests and new non-controlling interests recognized in acquisitions		2,015
Capital reduction of non-controlling interests		(28,652	)
Dividend declared		(231	)
Unrealized gain on available-for-sale investments		164
Foreign currency translation adjustment		2,949
Net income attributed to non-controlling interests		1,107

Balance as of May 31, 2018		16,482
Non-controlling interests arising from acquisitions		288
Purchase of non-controlling interests		(1,696	)
Disposal of a subsidiary		80
Capital contribution from non-controlling interests		5,317
Change in non-controlling interests resulting from Koolean Holding’s IPO, net of issuance cost		94,136
Reclassification of redeemable non-controlling interests		60,934
Unrealized gain on available-for-sale investments		465
Foreign currency translation adjustment		(1,376	)
Net loss attributed to non-controlling interests		(10,219	)

Balance as of May 31, 2019		164,411

Purchase of non-controlling interests		6,675
Capital contribution from non-controlling interests		(39	)
Share-based compensation expenses from Koolearn Holding		20,731
Exercise of share options in Koolearn Holding		3,629
Foreign currency translation adjustment		(417	)
Net loss attributed to non-controlling interests		(58,474	)

Balance as of May 31, 2020		136,516

The effects of changes in the Company’s ownership interest on the Company’s equity were as follows:


	For the years ended May 31,
	2018			2019			2020
	US$			US$			US$
Net income attribute to New Oriental Education & Technology Group Inc.’s shareholders		296,130			238,065			413,333
Share option gain		—			—			5,752
Decrease in the Group’s additional paid-in capital resulting from disposal of a subsidiary		—			(371	)		—
(Decrease) i ncrease in the Group’s additional paid-in capital resulting from reclassification and capital injection of non-controlling interests		(113,784	)		160,871			103
Increase in the Group’s additional paid-in capital resulting from the change in non-controlling interests resulting from Koolearn Holding’s IPO		—			139,211			—
Decrease in the Group’s additional paid-in capital resulting from repurchase shares from non-controlling interests		(63,721	)		(15,190	)		(20,045	)

Changes from net income attributable to New Oriental Education & Technology Group Inc.’s shareholders and transfers to non-controlling interests		118,625			522,586			399,143

Segment Information

12 Months Ended

May 31, 2020

Segment Reporting [Abstract]

Segment Information

23.	SEGMENT INFORMATION

The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Group. The Group identified seven operating segments, including

K-12 AST,

test preparation and other courses (formerly known as language training and test preparation courses), primary and secondary school education, online education, content development and distribution, overseas study consulting services, pre-school education and study tour, for the years ended

May 31, 2018, 2019 and 2020.

K-12 AST, test preparation and other courses, previously referred as

Language training and test preparation

has been identified as a reportable segment. Online education, content development and distribution, overseas study consulting services, pre-school education, primary and secondary school education and study tour operating segments were aggregated as others because individually they do not exceed the 10% quantitative threshold.

The Group primarily operates in the PRC and substantially all of the Group’s long-lived assets are located in the PRC.

The Group’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, operating cost and expenses, and operating income. Net revenues, operating cost and expenses, operating income, and total assets by segment were as follows:

For the year ended May 31, 2018


	K-12 AST, test preparation and other courses			Others			Consolidated
	US$			US$			US$
Net revenues		2,022,978			424,452			2,447,430

Operating cost and expenses:
Cost of revenues		(869,012	)		(196,728	)		(1,065,740	)
Selling and marketing		(193,851	)		(99,549	)		(293,400	)
General and administrative		(504,985	)		(108,343	)		(613,328	)
Unallocated corporate expenses		—			—			(212,003	)

Total operating cost and expenses		(1,567,848	)		(404,620	)		(2,184,471	)

Operating income		455,130			19,832			262,959

Segment assets		1,898,504			844,691			2,743,195
Unallocated corporate assets		—			—			1,234,517

Total assets		1,898,504			844,691			3,977,712

For the year ended May 31, 2019


	K-12 AST, test preparation and other courses			Others			Consolidated
	US$			US$			US$
Net revenues		2,605,829			490,662			3,096,491

Operating cost and expenses:
Cost of revenues		(1,128,355	)		(247,914	)		(1,376,269	)
Selling and marketing		(212,170	)		(145,228	)		(357,398	)
General and administrative		(675,315	)		(149,193	)		(824,508	)
Unallocated corporate expenses		—			—			(236,409	)

Total operating cost and expenses		(2,015,840	)		(542,335	)		(2,794,584	)

Gain on disposal of a subsidiary		—			—			3,627
Operating income (loss)		589,989			(51,673	)		305,534

Segment assets		2,226,344			1,118,884			3,345,228

Unallocated corporate assets		—			—			1,301,331

Total assets		2,226,344			1,118,884			4,646,559

For the year ended May 31, 2020


	K-12 AST, test preparation and other courses			Others			Consolidated
	US$			US$			US$
Net revenues		3,040,741			537,941			3,578,682

Operating cost and expenses:
Cost of revenues		(1,304,239	)		(284,660	)		(1,588,899	)
Selling and marketing		(218,739	)		(202,733	)		(421,472	)
General and administrative		(729,125	)		(179,349	)		(908,474	)
Unallocated corporate expenses		—			—			(260,834	)

Total operating cost and expenses		(2,252,103	)		(666,742	)		(3,179,679	)

Operating income (loss)		788,638			(128,801	)		399,003

Segment assets		3,588,900			1,388,730			4,977,630
Unallocated corporate assets		—			—			1,579,255

Total assets		3,588,900			1,388,730			6,556,885

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (f)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Mainland China Contribution Plan

12 Months Ended

May 31, 2020

Text Block [Abstract]

Mainland China Contribution Plan

24.	MAINLAND CHINA CONTRIBUTION PLAN

The Group’s full time employees in the PRC participate in a government-mandated multiemployer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The PRC labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. The total contributions for such employee benefits were US$129,334, US$178,057 and US$217,127 for the years ended May 31, 2018, 2019 and 2020, respectively.

Statutory Reserves

12 Months Ended

May 31, 2020

Text Block [Abstract]

Statutory Reserves

25.	STATUTORY RESERVES

Prior to payment of dividends, pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company’s subsidiaries and the VIEs in the PRC must make appropriations from after-tax profit to non-distributable reserve funds as determined by the

oard of

irectors of each company. These reserves include (i) general reserve and (ii) the development fund.

Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. During the years ended May 31, 2018, 2019 and 2020, US$1,830, US$1,875 and US$1,506 were accrued for the general reserve, respectively.

The PRC laws and regulations require private schools that require reasonable returns to make annual appropriations of 25% of after-tax income prior to payments of dividend to its development fund, which is to be used for the construction or maintenance of the school or procurement or upgrading of educational equipment, while in the case of a private school that does not require reasonable return, this amount should be equivalent to no less than 25% of the annual increase of net assets of the school as determined in accordance with generally accepted accounting principles in the PRC. During the years ended May 31, 2018, 2019 and 2020, appropriations to the development fund amounted to US$41,713, US$40,136 and US$73,043, respectively.

These reserves are included as statutory reserves in the consolidated statements of changes in equity and comprehensive income. The Group allocated US$43,543, US$42,011 and US$74,549 to statutory reserves during the years ended May 31, 2018, 2019 and 2020, respectively.

Restricted Net Assets

12 Months Ended

May 31, 2020

Receivables [Abstract]

Restricted Net Assets

26.	RESTRICTED NET ASSETS

Relevant PRC laws and regulations restrict the WFOEs and the VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserves and their share capital, to the Company in the form of loans, advances or cash dividends, except in the event of liquidation. The balance of restricted net assets was US$542,534

US$472,924 and US$513,721, of which US$448,103

US$437,121 and US$464,917 was attributed to the paid-in capital, additional paid-in capital and statutory reserves of the VIEs and US$94,431

US$35,803 and US$48,804 was attributed to the paid-in capital,

additional paid-in capital and statutory reserves of the WFOEs, as of May 31, 2018, 2019 and 2020, respectively. The WFOEs’ accumulated profits may be distributed as dividends to the Company without the consent of a third party. The VIEs’ revenues and accumulated profits may be transferred

to the Company through contractual arrangements without the consent of a third party. Under applicable PRC law, loans from the PRC companies to their offshore affiliated entities require governmental approval, and advances by the PRC companies to their offshore affiliated entities must be supported by bona fide business transactions.

Subsequent Events

12 Months Ended

May 31, 2020

Subsequent Events [Abstract]

Subsequent Events

27.	SUBSEQUENT EVENTS

On July 2, 2020, the Company issued US$300,000 bond due on July 2, 2025

(the “

Bond”). The Bond bears interest at a rate of 2.125% per year, payable semiannually in arrears on January 2 and July 2 of each year commencing January 2, 2021. The net proceeds from the Bond, after deducting the issuance costs were $297,083. The Company has accounted for the Bond as a single instrument

and recorded the proceeds, net of the issuance cost,

as bond payable.

On September 8, 2020, Koolearn Holding entered into a subscription agreement with the Company and another subscriber, pursuant to which the Company and the another subscriber conditionally agreed to subscribe for, and Koolearn Holding has conditionally agreed to allot and

issue

51,680,000

and

7,752,000

new shares, respectively, at the subscription price of US$

3.87

per subscription share (corresponding to approximately HK$

30.00

per subscription share),

for

an aggregate subscription amount of US$

230

million (corresponding to approximately HK$

1,783

million).

COVID-19 has spread rapidly to many parts of China and other parts of the world in the first quarter of calendar year 2020. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Substantially all of the Group’s revenue and workforce are concentrated in China. Consequently, the COVID-19 outbreak may

continue

affect the Group’s business operations and its financial condition and operating results for fiscal year 2021, including but not limited to negative impact to the

Group’s total revenues, fair value adjustments or impairment to the Group’s long term investments.

Significant Accounting Policies (Policies)

12 Months Ended

May 31, 2020

Accounting Policies [Abstract]

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”).

Basis of consolidation

Use of estimates

discount rate for leases,

fair value of underlying ordinary shares of Koolearn Holding before its IPO and mezzanine equity. Actual results could differ from those estimates.

Business combinations

Cash and cash equivalents

Restricted cash

Term deposits

Term deposits consist of deposits placed with financial institutions with original maturities of greater than three months and less than one year.

Short-term investments

Allowance for doubtful accounts

are presented net of allowance for doubtful accounts.

Changes in the allowance for doubtful accounts were as follows:


	As of May 31 ,
	2018			2019			2020
	US$			US$			US$
Beginning balance		1,180			1,399			751
Charge during the year		576			146			329
Written-off		(357	)		(794	)		(374	)

Ending balance		1,399			751			706

Property and equipment, net


Buildings			20-50 years
Transportation equipment			10 years
Furniture and education equipment			5 years
Computer equipment and software			3 years
Leasehold improvements			Shorter of the lease term or estimated useful life

Property and equipment also consists of construction in progress

Property and equipment also consist of construction in progress

Land use rights, net

Land use rights are recorded at cost less accumulated amortization and amortized on a straight-line basis over the remaining term of the land certificate, from 38.5 years to 50 years.

Intangible assets, net

The estimated useful lives of intangible assets are as follows:


Category	Estimated useful lives
Trade mark		10 years
License		20 years
Student base		1.75 years
Favorable lease		8.67 years
Courseware		3 years

Impairment of long-lived assets

Goodwill, net

On June 1, 2019, the Group early adopted Accounting Standards Update (“ASU”) 2017-04, Intangibles-Goodwill and Other (Topic 350) for the annual goodwill impairment test performed in

the

The Group recorded nil, US$5,245 and nil impairment losses during the years ended May 31, 2018, 2019 and 2020, respectively.

Cost Method Investments

Long-term investments, net

Equity securities

(a)

Equity securities

Equity securities with readily determinable fair values

•

Equity securities with readily determinable fair values

Equity securities without readily determinable fair values

•

Equity securities without readily determinable fair values

Equity Method Investments

(b)

Equity method investments

Available-for-sale Investments

(c)

Available-for-sale investments

Realized gains and losses and provision for decline in value determined to be other than temporary, if any, are recognized in the consolidated statements of operations.

Long-term loan

Long-term loan is recognized at carrying amount. Interest expense is accrued over the estimated term of the facilities and recorded in the consolidated statements of operations.

Non-controlling interests and redeemable non-controlling interests

Value added tax ("VAT")

Value added tax (“VAT”)

The new enrollment system development services and other operating services, which were previously subject to business taxes, are now subject to VAT at the rate of 6%

and the part in excess of the rate of

the Group can apply for refund upon collection by relevant tax authorities. The intercompany services related to self-developed software are subject to VAT at the rate

%. The sales of books are subject to VAT at the rate of

% since July 1, 2017, decreased to

% since May 1, 2018 and further decreased to

% since April 1, 2019.

Since January 2020, in accordance with Cai Shui [2020] No.8, due to the Novel coronavirus (“COVID-19”) pandemic, the VAT on certain services was temporarily exempted for the calendar year 2020.

Revenue recognition

sources.

The Group’s revenue

are

reported net of VAT and surcharges.

The primary sources of the Group’s revenues are as follows:

(a)

Educational programs and services

The Group recognizes revenue from the educational programs and services proportionately when the services are delivered. US$3,040,741 of revenue

of educational programs and services was derived from K

12 AST, test preparation and other courses, and the remaining amount was derived from other segments.

(b)

Books and other services

of books and other services w

ere

derived from other segments.

The Group’s contract assets consist of accounts receivable. The balance of contract assets amounted to US$3,137, US$3,300 and US$4,178 as of

May 31

May 3

, 2018

May 31, 2019 and May 31, 2020, respectively. All contract liabilities at the beginning of the year ended May 31, 2020 were recognized as revenue

during the year ended May 31, 2020 and the all contract liabilities as of May 31, 2020 are expected to be realized in the following

Refund liability mainly related to the estimated refunds that are expected to be provided to students if they decide they no longer want to take the course

. Refund liability estimates are based on historical refund ratio on a portfolio basis using the expected value method.

As of

May 3

, 2018

May 31, 2019 and May 31, 2020, refund liability amounted to US$68,185, US$76,221 and US$94,006, respectively, and are included in accrued expenses and other current liabilities.

Operating leases

Before June 1, 2019, the Group adopted ASC Topic 840 (“ASC 840”),

Leases

, and each lease is classified at the inception date as either a capital lease or an operating lease.

On June 1, 2019, the Group adopted the New Leasing Standard (“ASC 842”), using the modified retrospective transition method resulting in the recording of operating lease right-of-use (ROU) assets

1,254,595

and operating lease liabilities of

1,238,080

1,425,466

and total lease liabilities

1,462,162

, including current portion at the amount of

384,239

Advertising costs

Government subsidies

respectively. The government subsidies income recognized for the year ended May 31, 2020 were mainly from the VAT exemption due to the COVID-19.

Foreign currency translation

Foreign currency risk

US$1,105,190 and US$855,654 as of May 31, 2018

2019 and 2020, respectively.

Fair value

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 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

ong-term loan

and

income

Net income per share

Income taxes

Comprehensive income

Comprehensive income includes net income, unrealized gain or loss on available-for-sale

investments

and foreign currency translation adjustment. Comprehensive income is reported in the consolidated statements of comprehensive income.

Share-based compensation

The amount of compensation expenses recognized at any date is at least equal to the portion of the fair value of the awards that are vested as of that date. Forfeitures are recognized as they occur.

Concentration of credit risk

Recent accounting pronouncements adopted

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (ASC 842

nonlease

June

1, 2019 are presented under

ASC

842, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under

ASC

840.

The adoption did not have a material impact on the Group’s consolidated statements of operations or consolidated statements of cash flows, and the adoption of

ASC

842 did not result in a cumulative-effect adjustment to

the opening balance of

retained earnings. Further information is disclosed in Note 13.

on June 1, 2019

Recently issued accounting pronouncements not yet adopted

This

ASU

affect

ASU is

effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt this

ASU

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).

does not expect any material

impact on its consolidated financial statements

and related disclosures as a result of adopting

this

standard

Organization and Principal Activities (Tables)

12 Months Ended

May 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Details of Company's Major Subsidiaries and VIEs and Its Major Subsidiaries

As of May 31, 2020, details of the Company’s major subsidiaries, its VIEs and the VIEs’ major subsidiaries and schools were as follows:


Name	Date of incorporation or acquisition	Place of incorporation (or establishment)/ operation	Legal ownership	Principal activity
Major subsidiaries of the Company:
Beijing Decision Education & Consulting Company Limited (“Beijing Decision”)	April 20, 2005	PRC	100%	Educational technology and management services
Beijing Hewstone Technology Company Limited (“Beijing Hewstone”)	April 20, 2005	PRC	100%	Educational software development
Elite Concept Holdings Limited (“Elite Concept”)	December 3, 2007	Hong Kong	100%	Educational consulting
Winner Park Limited (“Winner Park”)	December 9, 2008	Hong Kong	100%	Educational consulting
Smart Shine International Limited (“Smart Shine”)	December 9, 2008	Hong Kong	100%	Educational consulting
Beijing Pioneer Technology Company Limited (“Beijing Pioneer”)	January 8, 2009	PRC	100%	Educational software development
Beijing Smart Wood Software Technology Company Limited (“Beijing Smart Wood”)	December 21, 2011	PRC	100%	Educational consulting and software development
Koolearn Holding	February 7, 2018	Cayman Islands	53.22%	Online education service
New Oriental Xuncheng Technology (HK) Limited (“Koolearn Tech”)	March 2, 2018	Hong Kong	53.22%	Online education service
Beijing Dexin Dongfang Network Technology Co., Ltd. (“Dexin Dongfang”)	March 21, 2018	PRC	53.22%	Educational consulting and software development
Zhuhai Chongsheng Heli Network Technology Co., Ltd (“Zhuhai Chongsheng”)	July 23, 2019	PRC	53.22%	Educational consulting and software development


Name	Date of incorporation or acquisition	Place of incorporation (or establishment)/ operation	Legal ownership	Principal activity
VIEs of the Company:
New Oriental Education & Technology Group Co., Ltd (“New Oriental China”)	August 2, 2001	PRC	N/A	Education consulting, software development and distributions and other services
Beijing New Oriental Xuncheng Network Technology Co., Ltd. (“Xuncheng”)	March 11, 2005	PRC	N/A	Online education service
Major subsidiaries and schools of the VIEs:
Beijing Haidian District Privately-Funded New Oriental School (“Beijing Haidian School”)	October 5, 1993	PRC	N/A	Language training and test preparation
Beijing New Oriental Yangzhou Foreign Language School	June 6, 2002	PRC	N/A	Primary and secondary school education
Wuhan New Oriental Training School	April 28, 2002	PRC	N/A	Language training and test preparation


Name	Date of incorporation or acquisition	Place of incorporation (or establishment)/ operation	Legal ownership	Principal activity
Xi’an Yanta District New Oriental School	November 26, 2002	PRC	N/A	Language training and test preparation
Nanjing Gulou New Oriental Advanced Study School	November 28, 2002	PRC	N/A	Language training and test preparation
Beijing New Oriental Dogwood Cultural Communications Co., Ltd. (“Dogwood”)	May 16, 2003	PRC	N/A	Content development and distribution
Beijing New Oriental Vision Overseas Consultancy Co., Ltd.	February 19, 2004	PRC	N/A	Oversea study consulting service
Hangzhou New Oriental Advanced Study School	July 21, 2005	PRC	N/A	Language training and test preparation
Beijing Chaoyang District Kindergarten of Stars	November 20, 2007	PRC	N/A	Pre-school education

Balances and Amounts of Company's WFOEs and VIEs


	As of May 31
	2018		2019		2020
	US$		US$		US$
Total current assets		2,081,374		2,179,752		2,385,315
Total non-current assets		750,316		957,650		2,463,751

Total assets		2,831,690		3,137,402		4,849,066

Total current liabilities		1,674,857		1,900,440		2,395,977
Total non-current liabilities		13,782		18,607		1,066,541

Total liabilities		1,688,639		1,919,047		3,462,518


	For the years ended May 31,
	2018			2019			2020
	US$			US$			US$
Net revenues		2,417,203			3,056,537			3,453,555
Net income		479,190			575,614			575,210
Net cash provided by operating activities		711,591			536,631			675,015
Net cash used in investing activities		(429,265	)		(450,569	)		(780,310	)
Net cash used in financing activities		(96,429	)		(27,691	)		(45,188	)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Significant Accounting Policies (Tables)

12 Months Ended

May 31, 2020

Accounting Policies [Abstract]

Changes in Allowance for Doubtful Accounts

Changes in the allowance for doubtful accounts were as follows:


	As of May 31 ,
	2018			2019			2020
	US$			US$			US$
Beginning balance		1,180			1,399			751
Charge during the year		576			146			329
Written-off		(357	)		(794	)		(374	)

Ending balance		1,399			751			706

Estimated Useful Lives of Assets

Depreciation and amortization are calculated on a straight line basis over the following estimated useful lives:


Buildings			20-50 years
Transportation equipment			10 years
Furniture and education equipment			5 years
Computer equipment and software			3 years
Leasehold improvements			Shorter of the lease term or estimated useful life

Summary of Estimated Useful Lives of Intangible Assets

The estimated useful lives of intangible assets are as follows:


Category	Estimated useful lives
Trade mark		10 years
License		20 years
Student base		1.75 years
Favorable lease		8.67 years
Courseware		3 years

Business Acquisitions (Tables)

12 Months Ended

May 31, 2020

Other Acquisitions [Member]

Pro Froma Result from Operation

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 June 1, 2016, nor is it indicative of future operating results.


	For the years ended May 31,
	2017		2018
	(unaudited) US$		(unaudited) US$
Pro forma net revenues		1,815,660		2,451,735
Pro forma net income attributable to New Oriental Education and Technology Group Inc.		275,685		296,697
Pro forma net income per share – basic		1.75		1.88
Pro forma net income per share – diluted		1.75		1.87


	For the years ended May 31,
	2018		2019
	(unaudited) US$		(unaudited) US$
Pro forma net revenues		2,451,735		3,100,364
Pro forma net income attributable to New Oriental Education and Technology Group Inc.		296,697		238,794
Pro forma net income per share – basic		1.88		1.51
Pro forma net income per share – diluted		1.87		1.50

Hangzhou Shengshen [Member]

Purchase Price Allocation

The purchase price allocation was determined by the Group with assistance of an independent appraiser. The purchase price was allocated on the date of acquisition as follows:


	US$			Amortization period
Cash		3,571
Other current assets		704
Property and equipment		1,148			1-5 years
Intangible assets
Trademark		1,713			5 years
Student base		2,164			3 years
Goodwill		9,809
Deferred revenue		(5,566	)
Other current liabilities		(1,562	)
Deferred tax liabilities		(969	)

Total		11,012

Suzhou Hongyi [Member]

Purchase Price Allocation

The purchase price was allocated on the date of acquisition as follows:


	US$			Amortization period
Cash		1,321
Other current assets		2,020
Property and equipment		402			1-5 years
Intangible assets
Trademark		1,845			5 years
Student base		4,656			3 years
Goodwill		37,860
Other current liabilities		(3,871	)
Deferred tax liabilities		(1,625	)

Total		42,608

Asia Pacific Montessori Education Co Ltd [Member]

Purchase Price Allocation

The purchase price was allocated on the date of acquisition as follows:


	US$			Amortization period
Cash		1,269
Other current assets		695
Property and equipment		251			1-5 years
Intangible assets
Trademark		2,085			5 years
Student base		1,064			3 years
Goodwill		17,043
Other non-current assets		2,086
Other current liabilities		(4,189	)
Deferred tax liabilities		(787	)
Fair value of the 35% equity interest s p reviously held		(6,917	)

Total		12,600

Short-Term Investments (Tables)

12 Months Ended

May 31, 2020

Investments, Debt and Equity Securities [Abstract]

Summary of Short-Term Investments

Short-term investments consisted of the following:


	As of May 31,
	2018		2019		2020
	US$		US$		US$
Held-to-maturity investments		1,623,763		1,668,689		2,318,280

Prepaid Expenses and Other Current Assets, Net (Tables)

12 Months Ended

May 31, 2020

Text Block [Abstract]

Components of Prepaid Expenses and Other Current Assets, Net

Prepaid expenses and other current assets, net, consisted of the following:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Advances to suppliers		43,913			45,665			49,547
Prepaid rents (a)		56,531			52,794			39,706
Interest receivables		23,647			23,856			33,488
Staff advances (b)		9,544			14,811			24,712
Receivable from third parties’ platforms		5,967			9,831			10,593
Rental deposits		10,953			9,539			10,326
Prepaid advertising fees		6,917			4,564			7,607
VAT recoverable		3,493			2,297			5,562
Deposits of advertising and decoration		3,342			3,020			2,594
Prepaid property taxes and other taxes		212			455			779
Others ( c )		18,490			33,093			14,639

		183,009			199,925			199,553
Less: allowance for other receivables		(914	)		(248	)		(149	)

		182,095			199,677			199,404

(a)

Prepaid rents represent the prepayment of rent related to leases less than 12 months.

(b)

Staff advances were provided to staff for travelling and business related use and are expensed as incurred.

(c)

Others primarily included prepaid maintenance fees, other receivables and other miscellaneous prepayments.

Property and Equipment, Net (Tables)

12 Months Ended

May 31, 2020

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment, Net

Property and equipment, net, consisted of the following:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Buildings		156,324			142,047			178,782
Transportation equipment		9,936			9,565			9,172
Furniture and education equipment		128,670			153,674			195,262
Computer equipment and software		65,227			70,995			95,385
Leasehold improvements		349,953			451,105			579,231
Construction in progress		30,921			36,376			44,856

		741,031			863,762			1,102,688
Less: accumulated depreciation		(275,940	)		(342,106	)		(453,218	)
Exchange differences		(15,499	)		10,359			22,985

		449,592			532,015			672,455

Land Use Rights, Net (Tables)

12 Months Ended

May 31, 2020

Text Block [Abstract]

Land Use Rights, Net

Land use rights, net, consisted of the following:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Land use rights		5,315			7,955			7,696
Less: accumulated amortization		(1,417	)		(1,680	)		(1,842	)
Exchange differences		(113	)		130			183

Land use rights, net		3,785			6,405			6,037

Intangible Assets, Net (Tables)

12 Months Ended

May 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Net

Intangible assets, net, consisted of the following:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Intangible assets with indefinite lives:
Trademark		256			238			229
Intangible assets with finite lives:
Trademark		5,575			9,109			9,170
Courseware		129			120			116
Student base		7,014			12,223			12,719
Favorable lease		732			679			657
License		415			415			415

		14,121			22,784			23,306

Less: accumulated amortization		(5,272	)		(8,985	)		(13,515	)
Exchange differences		(305	)		136			455

		8,544			13,935			10,246

Goodwill, Net (Tables)

12 Months Ended

May 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill, Net

Goodwill, net, consisted of the following:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Beginning balance		15,765			33,411			86,541
Acquisition		16,192			55,632			2,815
Exchange differences		1,454			(2,502	)		(2,063	)

Ending balance		33,411			86,541			87,293
Accumulated impairment		(1,682	)		(6,927	)		(6,927	)

Goodwill, net		31,729			79,614			80,366

Long-Term Investments, Net (Tables)

12 Months Ended

May 31, 2020

Schedule of Investments [Abstract]

Long-Term Investments

Long-term investments, net, consisted of the following:


	As of May 31,
	2018		2019		2020
	US$		US$		US$
Equity securities with readily determinable fair value:
Sunlands Online Education Group (“Sunlands”) (a)		134,423		37,802		21,440
Beijing Shengtong Printing Co., Ltd (“Shengtong”) (b)		9,261		6,839		4,066
Tarena International, Inc. (“Tarena”) (c)		9,610		3,200		2,190
Equity securities without readily determinable fair value:
Tibet Tianli Education and Technology Co., Ltd (“Tibet Tianli”) (d)		—		4,346		10,512
EEO Education Technology Co., Ltd. (“EEO”) (e)		9,767		9,069		8,774
Other investments (f)		28,740		30,663		30,797
Equity method investments:
New Oriental Education and Culture Industry Fund (Zhangjiagang) Partnership (Limited Partnership) (“Education Industry Fund”) (g)		—		67,834		67,057
VM EDU Fund I, L.P.(h)		—		—		56,734
Other investments (i)		9,131		20,191		27,716
Available-for-sale investments:
Shanghai Golden Education & Training Co., Ltd. (“Golden Finance”) (j)		86,937		61,963		59,947
Tianjin Uhozz Internet Technology Co., Ltd (“Uhozz”) (k)		12,826		16,350		16,350
Shanghai ALO7 Technology Co., Ltd. (“Alo7.com”) (l)		14,395		14,289		14,289
Lele Global Limited (“Lele”) (m)		9,157		11,251		11,680
Other available-for-sale investments (n)		109,086		120,907		99,549

		433,333		404,704		431,101

(a)

in Sunlands during July 2016. Subsequent to the additional investment, the Group holds 9.8% equity interest in Sunlands.

and US$ 16,362

were recorded in loss from fair value change of long-term investments

for

the

years

ended May 31, 2019

2020

, respect

ively,

on the Group’s consolidated statements of operations.

(b)

In April 2015, the Group acquired 18% equity interest

losses

of US$1,605

and US$1,079

were

recorded in loss from fair value change of long-term investments for the

years

ended May 31, 2019

and 2020

, respectively

(c)

losses

of US$6,410 and US$1,010

were

recorded in loss from fair value change of long-term investments for the

years

ended May 31, 2019 and 2020

, respecti

vely

(d)

In December 2018, the Group invested

5% equity interests in Tibet Tianli

is a private company without readily determinable fair value. As of May 31, 2020, the

roup hold

9.75%

of the total equity interests in Tibet Tianli after the dilution. For the years ended May 31, 2018, 2019 and 2020, no impairment loss was recorded from this investment.

(e)

In April 2017, the Group acquired 10% equity interest

2019 and 2020, no impairment loss was recorded in regard to the investment.

(f)

cost

(g)

In July 2018, Education Industry Fund was established with the total committed capital of US$224,000

. There are two general partners in the fund, which include

an entity

invested

by Mr. Yu

and an unrelated third party

. The Group participates in Education Industry Fund as a limited partner and invested US$75,000 in Education Industry Fund

as of May 31, 2020

. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and owns 33% interest in Education Industry Fund.

(h)

In June 2019, VM EDU Fund I, LP, a market-driven investment entity, was established with total committed capital of US$100,000.

(i)

The Group holds

from

6.86% to 50% equity interests in other 15 third-party companies through investments in their common shares or in-substance common shares.

ajority of the long-term investments are engaged

the

business of p

roviding

educational services. The Group accounts for these investment

(j)

9.75%

equity interests. During the year ended May 31, 2019, the Group disposed of 7.2% equity interests in Golden Finance with total consideration of US$33,156, and the remaining shares were diluted to

12.3%. Gain of US$23,096

(k)

In May 2015, the Group invested in Uhozz, a company providing oversea rental agency services, for 10% equity interests with redemption and liquidation preference

redeemabl

and

determined to be debt securities and measured them at fair value.

(l)

In March 2012, the Group acquired a convertible promissory note from Alo7.com

for US$1,000

, which entitled the Group to automatically convert the note into equity security upon certain conditions were met.

July 2012, the Group converted the

US$1,000

(m)

In September 2015, the Group invested in Lele, a company providing online learning and tutoring services for students from kindergarten through 12

grade, to acquire 48,796,296 convertible redeemable preferred shares for

8.5% equity interests. In December 2018, the Group further

due to substantive redemption right and measured the investment at fair value.

(n)

Other available-for-sale

investments

represent several insignificant individual investments classified as available-for-sale investments as of May 31, 2018, 2019 and 2020. Realized gain

of US$2,821, US$3,283 and US$407

were recorded in realized gain from long-term investments for the years ended May 31, 2018, 2019 and 2020, respectively.

The Group recognized impairment losses from long-term investments amounting to US$980, US$5,919 and US$31,750

for the years ended May 31, 2018, 2019 and 2020, respectively, as the Group believes the carrying value of these investments were no longer recoverable.

The Group recorded unrealized gain of US$129,545, US$19,483 and unrealized loss of US$748 from available for sale investments for the years ended May 31, 2018, 2019 and 2020, respectively.

Fair Value Measurement (Tables)

12 Months Ended

May 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Available-for-Sale Securities Recorded in Long Term Investments Measured and Recorded at Fair Value on Recurring Basis

As of May 31, 2018

Quoted Prices in

Significant Other

Significant

Active Market for

Observable

Unobservable

Identical Assets

Inputs

Description

Level 1

Level 2

Level 3

Total

US$

Long-term investments:

Available-for-sale investments

153,294

98,504

133,897

385,695


	As of May 31, 2019
	Quoted Prices in		Significant Other		Significant
	Active Market for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	Level 1		Level 2		Level 3		Total
	US$		US$		US$		US$
Long-term investments:
Equity securities with readily determinable fair values		47,841		—		—		47,841
Available-for-sale investments		—		78,879		145,881		224,760
Contingent consideration payable (Note 3)		—		—		15,150		15,150

Total		47,841		78,879		161,031		287,751

As of May 31, 2020

Quoted Prices in

Significant Other

Significant

Active Market for

Observable

Unobservable

Identical Assets

Inputs

Description

Level 1

Level 2

Level 3

Total

US$

Long-term investments:

Equity securities with readily determinable fair values

27,696

—

27,696

Available-for-sale investments

—

41,889

159,926

201,815

Total

27,696

41,889

159,926

229,511

Reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs

The following table provides additional information about the reconciliation of the fair value measurements of assets and liabilities

using significant unobservable inputs (level 3).


	Level 3
	investments
	US$
Balance as of June 1 , 2017		123,029
Transfer to level 1 fair value measurements		(32,644	)
Unrealized gain		43,512

Balance as of May 31, 2018		133,897
Initial recognition		45,989
Unrealized loss		(18,855	)

Balance as of May 31, 2019		161,031
Initial recognition		10,000
Transfer from level 2		11,534
Transfer to level 2		(5,713	)
Unrealized loss		(16,926	)

Balance as of May 31, 2020		159,926

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

May 31, 2020

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	As of May 31,
	2018		2019		2020
	US$		US$		US$
Accrued payroll		212,677		285,329		331,172
Refund liability (a)		—		76,221		94,006
Payable for purchase of property and equipment		45,590		44,445		65,335
Accrued advertising fees		8,548		11,934		20,231
Refundable fees received from students ( b )		11,541		15,783		15,955
Refundable deposits ( c )		7,290		11,074		14,819
Rent payable		18,210		23,643		13,857
Welfare payable		9,187		12,897		12,612
Amounts reimbursable to employees ( d )		16,157		19,366		12,674
Royalty fees payable (e)		4,410		7,724		6,696
Accrued professional service fees		1,134		1,943		6,199
Payable for investments and acquisitions		5,420		21,962		3,917
VAT payable		12,125		13,321		2,881
Other taxes payable		2,945		2,715		1,785
Others (f)		18,303		28,164		32,480

Total		373,537		576,521		634,619

(a)

The refund liability is recognized for variable amount of the considerations received from clients and recorded as refund liability in accordance with Topic 606 as described in Note 2.

(b)

(c)

Refundable deposits represent student deposits for dormitory or other fees that will be refunded upon graduation and student security deposits refunded upon completion of the study tour.

(d)

Amounts reimbursable to employees include travelling and the business related expenses.

(e)

Royalty fees payable relate to payments to content providers for on-line learning programs and those to counterparties for copyrights and resource sharing.

(f)

Others primarily include transportation expenses, utility fees, property management fees and other miscellaneous expenses payable.

Lease (Tables)

12 Months Ended

May 31, 2020

Lessee Disclosure [Abstract]

Summary of supplemental cash flow information of the leases

Supplemental cash flow information related to the operating leases is as follows:


	For the year ended May 31, 2020
	US$
Cash payments for the operating leases		371,734
ROU assets obtained in exchange for the new operating lease liabilities		639,545

Summary of annual undiscounted cash flows for lease liabilities

A summary of maturity analysis of the annual undiscounted cash flows for the operating lease liabilities as of May 31, 2020 is as follows:


	As of May 31, 2020
	US$
Fiscal year ending
May 2021		407,854
May 2022		367,805
May 2023		302,990
May 2024		225,387
May 2025		130,190
Thereafter		176,984

Total future lease payments		1,611,210
Less: Imputed interest		(149,048	)

Present value of operating lease liabilities		1,462,162

Summary of future minimum lease payments

As of May 31, 2019, the future minimum lease payments under the Group’s non-cancelable operating lease agreements based on ASC 840 are as follows:


	As of May 31, 2019
	US$
Fiscal year ending
May 2020		360,972
May 2021		337,751
May 2022		297,379
May 2023		212,814
May 2024		143,899
Thereafter		162,882

Total future lease payments		1,515,697

Long-Term Loan (Tables)

12 Months Ended

May 31, 2020

Debt Disclosure [Abstract]

Summary of long term debt maturities


	As of May 31,
	2019		2020
	US$		US$
Secured Bank Loan		96,457		117,881
The carrying amounts of bank loans are repayable:
Within a period of more than one year but not exceeding two years		—		117,881
Within a period of more than two years but not exceeding five years		96,457		—

Common Shares and Treasury Stock (Tables)

12 Months Ended

May 31, 2020

Class of Stock Disclosures [Abstract]

Movement of the outstanding common shares and treasury stock

The movement of the outstanding common shares and treasury stock is listed as below.


	Number of common share			Number of treasury stock
Shares outstanding as of June 1 , 2017		157,687,444			691,943
Reissuance of treasury stock for NES		631,966			(631,966	)
Reissuance of treasury stock for the exercises of options		500			(500	)

Shares outstanding as of May 31, 2018		158,319,910			59,477

Reissuance of treasury stock for NES		59,477			(59,477	)
Issuance of common share for NES		422,327			—
Shares repurchase		(952,000	)		952,000

Shares outstanding as of May 31, 2019		157,849,714			952,000

Reissuance of treasury stock for NES		690,366			(690,366	)

Shares outstanding as of May 31, 2020		158,540,080			261,634

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65888546&loc=d3e21300-112643

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(28))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21553-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 480
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65877616&loc=d3e177068-122764

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21488-112644

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(27))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21484-112644

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Share-Based Compensation (Tables)

12 Months Ended

May 31, 2020

Summary of NES Activities under 2006 and 2016 Share Incentive Plan

The NES activities under the 2016 Share Incentive Plan for the year ended May 31, 2020 are summarized as follows:


	Number of NES			Weighted- average grant date fair value and intrinsic value
				US$
NES outstanding as of June 1, 2019		1,908,900			66.89
Granted		181,715			0
Vested		(690,366	)		0
Forfeited		(143,744	)		0
NES outstanding as of May 31, 2020		1,256,505			70.73

NES vested and expect to vest as of May 31, 2020		1,256,505

The fair value estimate of share options

Option valuation model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying shares, and changes in the subjective input assumptions can materially affect the fair value estimate of share options.


	March 7, 2019 Pre-IPO Share OptionScheme
Weighted average share price	US$	1.19
Exercise price	US$	1.13
Expected volatility		46.8	%
Expected life		6 years
Risk-free rate		2.49	%
Expected dividend yield		0.00	%

Kooleam pre ipo share option scheme [Member]

Share-based compensation, stock options

The movements of share options under the

Pre-IPO

Option Scheme

for the year

ended

May 31,

2019

and 2020

are summarized as follows:


	Number of share options			Weighted average exercise price per option (US$)
Granted on March 7, 2019		47,836,985			1.13
Forfeited		(3,065,500	)		1.13
Cancelled		(31,000	)		1.13

Outstanding as of May 31, 2019		44,740,485			1.13

Forfeited		(2,360,000	)		1.13

Cancelled		(3,129,000	)		1.13

Outstanding as of May 31, 2020		39,251,485			1.13

Kooleam post ipo share option [Member]

Share-based compensation, stock options

The movements of share options under the Post-IPO Share Option Scheme are summarized as follows:


	Number of share options			Weighted average exercise price per option (US$)
Granted on January 29, 2020		40,000,000			3.26

Forfeited		(1,801,000	)		3.26

Outstanding as of May 31, 2020		38,199,000			3.26

The fair value estimate of share options


	January 29, 2020 Post- IPO Share Option Scheme
Weighted average share price	US$	3.49
Exercise price	US$	3.26
Expected volatility		52	%
Expected life		10 years
Risk-free rate		1.44	%
Expected dividend yield		0.00	%

Income Taxes (Tables)

12 Months Ended

May 31, 2020

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

Significant components of provision for income taxes for the years ended May 31, 2018, 2019 and 2020 were as follows:


	For the years ended May 31,
	2018			2019			2020
	US$			US$			US$
Current:
PRC		72,785			103,031			142,992

Deferred:
PRC		(13,377	)		(17,317	)		(8,630	)

Total provision for income taxes		59,408			85,714			134,362

Components of Group's Deferred Tax Assets and Liabilities

Significant components of the Group’s deferred tax assets and liabilities were as follows:


	As of May 31,
	2018			2019			2020
	US$			US$			US$
Deferred tax assets
Allowance doubtful accounts		1,965			3,523			4,677
Accrued expenses		32,253			43,212			55,172
Net operating loss carry-forward		14,611			22,299			43,049
Tax impact from the long term investments disposed to a related party		—			1,521			1,521

Total deferred tax assets		48,829			70,555			104,419

Less: valuation allowance		(5,506	)		(9,088	)		(41,095	)

Total deferred tax assets, net		43,323			61,467			63,324

Deferred tax liabilities
Acquired assets		3,308			5,038			3,598
Tax impact from the unrealized gain on available-for-sale investments		8,825			13,743			8,308

Total deferred tax liabilities		12,133			18,781			11,906

Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates

A reconciliation of the effective tax rates from 25% statutory tax rates for the years ended May 31, 2018, 2019 and 2020 was as follows:


	For the years ended May 31,
	2018			2019			2020
	%			%			%
Statutory tax rate		25.00			25.00			25.00
Effect of not deductible expenses for tax purposes		4.35			16.70			5.93
Tax effect of exempt entities		(8.10	)		(6.91	)		(5.50	)
Effect of tax holiday		(5.70	)		(9.73	)		(5.13	)
Changes in valuation allowance		0.43			1.13			6.53
Effect of dividend withholding tax		0.66			0.77			0.63

Effective tax rate		16.64			26.96			27.46

Schedule of Increase in Income Tax Expenses and Decrease in Net Income Per Share


	For the years ended May 31,
	2018		2019		2020
	US$		US$		US$
Increase in income tax expenses		48,444		51,002		50,809
Decrease in net income per share - basic		0.31		0.32		0.32
Decrease in net income per share - diluted		0.31		0.32		0.32

Net Income Per Share (Tables)

12 Months Ended

May 31, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Share

The computation of basic and diluted net income per common share for the years ended May 31, 2018, 2019 and 2020 was as follows:


	For the years ended May 31,
	2018		2019		2020
	US$		US$		US$
Numerator:
Net income attributable to New Oriental Education & Technology Group Inc.’s shareholders		296,130		238,065		413,333

Net income available for future distribution		296,130		238,065		413,333

Denominator
Weighted average common shares outstanding - b asic		158,168,794		158,293,890		158,429,576

Plus: incremental weighted average common shares from assumed vesting of NES using the treasury stock method		387,706		745,455		1,107,314

Weighted average common shares outstanding - d iluted		158,556,500		159,039,345		159,536,890

Net income per common share
- Basic		1.87		1.50		2.61
- Diluted		1.87		1.50		2.59

Related-Parties Transactions (Tables)

12 Months Ended

May 31, 2020

Balances and Transaction with Related Parties

The Group had the following balances and transactions with related parties:

(a)

Balances:


			Amounts due from related parties, current As of May 31,						Amounts due to related parties, current As of May 31,
	Notes	Relationship	2018		2019		2020		2018		2019		2020
			US$		US$		US$		US$		US$		US$
Metropolis Holding China Limited (“Metropolis”)	(1)	Company controlled by Mr. Yu		787		15,581		1,951		—		—		159
Beijing Dianshi Jingwei Technololy Co., Ltd (“Dianshi Jingwei”)	(2)	Equity method investee		—		15,211		—		—		—		—
Education Industry Fund		Equity method investee		—		8,692		—		—		—		—
Others	( 3 )			808		3,160		1,433		30		472		1,431

Total				1,595		42,644		3,384		30		472		1,590


			Amounts due from related parties, non- current As of May 31,
	Notes	Relationship	2018		2019		2020
			US$		US$		US$
Metropolis	(1)	Company controlled by Mr. Yu		2,226		1,204		1,550
Dianshi Jingwei	(2)	Equity method investee		—		—		21,024
Others	( 3 )			—		—		135

Total				2,226		1,204		22,709

(b)

Transactions:


			Rental expenses For the years ended May 31,
			2018		2019		2020
			US$		US$		US$
Metropolis	(1)	Company controlled by Mr. Yu		7,899		7,888		9,615


			Loans provided to related parties For the years ended May 31,
			2018		2019		2020
			US$		US$		US$
Dianshi Jingwei	(2)	Equity method investee		—		61,155		7,128

Total				—		61,155		7,128


			Revenues For the years ended May 31,
			2018		2019		2020
			US$		US$		US$
Beijing Fishpond Software Technology Co., Ltd. (“Fishpond”)		Equity method investee		—		1,060		438
Others	( 4 )			92		—		41

Total				92		1,060		479


			Cost For the years ended May 31,
			2018		2019		2020
			US$		US$		US$
EEO		Equity securities without readily determinable fair values investee		—		2,408		3,239
Beijing Dongfang Heli Investment and Developement Ltd (“Dongfang Heli”)		Equity method investee		—		1,064		1,700
Others	( 4 )			—		460		31

Total				—		3,932		4,970

(1)

2020

, the current and non-current amounts due from Metropolis were US$1,951 and US$

1,550, respectively, which represented prepaid rent

related to a short-term lease

and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by the Group’s board of directors.

(2)

(3)

As of May 31, 2018, 2019 and 2020, the balance in “others” included the receivables from and payables to long-term investees.

(4)

As of May 31, 2018, 2019 and 2020, the balance in “others” included the revenue and cost from long-term investees.

Commitments and Contingencies (Tables)

12 Months Ended

May 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Capital Commitments under Non-Cancelable Construction and Investments

As of May 31, 2020, the future minimum capital commitments were as follows:


	US$
		4,148
Capital commitment for the purchase of property and equipment		28,901

Capital commitment for leasehold improvements		33,049

Non-controlling Interests (Tables)

12 Months Ended

May 31, 2020

Noncontrolling Interest [Abstract]

Summary of Changes in Non-controlling Interest


	Non-controlling interests
	US$
Balance as of June 1, 2017		39,130
Capital contribution from non-controlling interests and new non-controlling interests recognized in acquisitions		2,015
Capital reduction of non-controlling interests		(28,652	)
Dividend declared		(231	)
Unrealized gain on available-for-sale investments		164
Foreign currency translation adjustment		2,949
Net income attributed to non-controlling interests		1,107

Balance as of May 31, 2018		16,482
Non-controlling interests arising from acquisitions		288
Purchase of non-controlling interests		(1,696	)
Disposal of a subsidiary		80
Capital contribution from non-controlling interests		5,317
Change in non-controlling interests resulting from Koolean Holding’s IPO, net of issuance cost		94,136
Reclassification of redeemable non-controlling interests		60,934
Unrealized gain on available-for-sale investments		465
Foreign currency translation adjustment		(1,376	)
Net loss attributed to non-controlling interests		(10,219	)

Balance as of May 31, 2019		164,411

Purchase of non-controlling interests		6,675
Capital contribution from non-controlling interests		(39	)
Share-based compensation expenses from Koolearn Holding		20,731
Exercise of share options in Koolearn Holding		3,629
Foreign currency translation adjustment		(417	)
Net loss attributed to non-controlling interests		(58,474	)

Balance as of May 31, 2020		136,516

The effects of changes in the Company’s ownership interest on the Company’s equity were as follows:


	For the years ended May 31,
	2018			2019			2020
	US$			US$			US$
Net income attribute to New Oriental Education & Technology Group Inc.’s shareholders		296,130			238,065			413,333
Share option gain		—			—			5,752
Decrease in the Group’s additional paid-in capital resulting from disposal of a subsidiary		—			(371	)		—
(Decrease) i ncrease in the Group’s additional paid-in capital resulting from reclassification and capital injection of non-controlling interests		(113,784	)		160,871			103
Increase in the Group’s additional paid-in capital resulting from the change in non-controlling interests resulting from Koolearn Holding’s IPO		—			139,211			—
Decrease in the Group’s additional paid-in capital resulting from repurchase shares from non-controlling interests		(63,721	)		(15,190	)		(20,045	)

Changes from net income attributable to New Oriental Education & Technology Group Inc.’s shareholders and transfers to non-controlling interests		118,625			522,586			399,143

Schedule of Effects of Changes in Ownership Interest on Equity

The effects of changes in the Company’s ownership interest on the Company’s equity were as follows:


	For the years ended May 31,
	2018			2019			2020
	US$			US$			US$
Net income attribute to New Oriental Education & Technology Group Inc.’s shareholders		296,130			238,065			413,333
Share option gain		—			—			5,752
Decrease in the Group’s additional paid-in capital resulting from disposal of a subsidiary		—			(371	)		—
(Decrease) i ncrease in the Group’s additional paid-in capital resulting from reclassification and capital injection of non-controlling interests		(113,784	)		160,871			103
Increase in the Group’s additional paid-in capital resulting from the change in non-controlling interests resulting from Koolearn Holding’s IPO		—			139,211			—
Decrease in the Group’s additional paid-in capital resulting from repurchase shares from non-controlling interests		(63,721	)		(15,190	)		(20,045	)

Changes from net income attributable to New Oriental Education & Technology Group Inc.’s shareholders and transfers to non-controlling interests		118,625			522,586			399,143

Segment Information (Tables)

12 Months Ended

May 31, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

For the year ended May 31, 2018


	K-12 AST, test preparation and other courses			Others			Consolidated
	US$			US$			US$
Net revenues		2,022,978			424,452			2,447,430

Operating cost and expenses:
Cost of revenues		(869,012	)		(196,728	)		(1,065,740	)
Selling and marketing		(193,851	)		(99,549	)		(293,400	)
General and administrative		(504,985	)		(108,343	)		(613,328	)
Unallocated corporate expenses		—			—			(212,003	)

Total operating cost and expenses		(1,567,848	)		(404,620	)		(2,184,471	)

Operating income		455,130			19,832			262,959

Segment assets		1,898,504			844,691			2,743,195
Unallocated corporate assets		—			—			1,234,517

Total assets		1,898,504			844,691			3,977,712

For the year ended May 31, 2019


	K-12 AST, test preparation and other courses			Others			Consolidated
	US$			US$			US$
Net revenues		2,605,829			490,662			3,096,491

Operating cost and expenses:
Cost of revenues		(1,128,355	)		(247,914	)		(1,376,269	)
Selling and marketing		(212,170	)		(145,228	)		(357,398	)
General and administrative		(675,315	)		(149,193	)		(824,508	)
Unallocated corporate expenses		—			—			(236,409	)

Total operating cost and expenses		(2,015,840	)		(542,335	)		(2,794,584	)

Gain on disposal of a subsidiary		—			—			3,627
Operating income (loss)		589,989			(51,673	)		305,534

Segment assets		2,226,344			1,118,884			3,345,228

Unallocated corporate assets		—			—			1,301,331

Total assets		2,226,344			1,118,884			4,646,559

For the year ended May 31, 2020


	K-12 AST, test preparation and other courses			Others			Consolidated
	US$			US$			US$
Net revenues		3,040,741			537,941			3,578,682

Operating cost and expenses:
Cost of revenues		(1,304,239	)		(284,660	)		(1,588,899	)
Selling and marketing		(218,739	)		(202,733	)		(421,472	)
General and administrative		(729,125	)		(179,349	)		(908,474	)
Unallocated corporate expenses		—			—			(260,834	)

Total operating cost and expenses		(2,252,103	)		(666,742	)		(3,179,679	)

Operating income (loss)		788,638			(128,801	)		399,003

Segment assets		3,588,900			1,388,730			4,977,630
Unallocated corporate assets		—			—			1,579,255

Total assets		3,588,900			1,388,730			6,556,885

Organization and Principal Activities - Details of Company's Major Subsidiaries and VIEs and Its Major Subsidiaries (Detail)	12 Months Ended
	May 31, 2020
Variable interest entities (VIEs) [Member] \| New Oriental Education & Technology Group Co., Ltd [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Aug. 02, 2001
Place of incorporation (or establishment)/ operation	PRC
Variable interest entities (VIEs) [Member] \| Beijing New Oriental Xuncheng Network Technology Co., Ltd [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Mar. 11, 2005
Place of incorporation (or establishment)/ operation	PRC
Major Subsidiaries of the Company [Member] \| Beijing Decision Education & Consulting Company Limited [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Apr. 20, 2005
Place of incorporation (or establishment)/ operation	PRC
Legal ownership	100.00%
Major Subsidiaries of the Company [Member] \| Beijing Hewstone Technology Company Limited [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Apr. 20, 2005
Place of incorporation (or establishment)/ operation	PRC
Legal ownership	100.00%
Major Subsidiaries of the Company [Member] \| Elite Concept Holdings Limited [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Dec. 03, 2007
Place of incorporation (or establishment)/ operation	Hong Kong
Legal ownership	100.00%
Major Subsidiaries of the Company [Member] \| Winner Park Limited [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Dec. 09, 2008
Place of incorporation (or establishment)/ operation	Hong Kong
Legal ownership	100.00%
Major Subsidiaries of the Company [Member] \| Smart Shine International Limited [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Dec. 09, 2008
Place of incorporation (or establishment)/ operation	Hong Kong
Legal ownership	100.00%
Major Subsidiaries of the Company [Member] \| Beijing Pioneer Technology Company Limited [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Jan. 08, 2009
Place of incorporation (or establishment)/ operation	PRC
Legal ownership	100.00%
Major Subsidiaries of the Company [Member] \| Beijing Smart Wood Software Technology Company Limited [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Dec. 21, 2011
Place of incorporation (or establishment)/ operation	PRC
Legal ownership	100.00%
Major Subsidiaries of the Company [Member] \| Koolearn Holding [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Feb. 07, 2018
Place of incorporation (or establishment)/ operation	Cayman Islands
Legal ownership	53.22%
Major Subsidiaries of the Company [Member] \| New Oriental Xuncheng Technology (HK) Limited [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Mar. 02, 2018
Place of incorporation (or establishment)/ operation	Hong Kong
Legal ownership	53.22%
Major Subsidiaries of the Company [Member] \| Beijing Dexin Dongfang Network Technology Co Ltd [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Mar. 21, 2018
Place of incorporation (or establishment)/ operation	PRC
Legal ownership	53.22%
Major Subsidiaries of the Company [Member] \| Zhuhai Chongsheng Heli Network Technology Co., Ltd [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Jul. 23, 2019
Place of incorporation (or establishment)/ operation	PRC
Legal ownership	53.22%
Major Subsidiaries and Schools of the VIEs [Member] \| Beijing Haidian District Privately-Funded New Oriental School [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Oct. 05, 1993
Place of incorporation (or establishment)/ operation	PRC
Major Subsidiaries and Schools of the VIEs [Member] \| Beijing New Oriental Yangzhou Foreign Language School [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Jun. 06, 2002
Place of incorporation (or establishment)/ operation	PRC
Major Subsidiaries and Schools of the VIEs [Member] \| Wuhan New Oriental Training School [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Apr. 28, 2002
Place of incorporation (or establishment)/ operation	PRC
Major Subsidiaries and Schools of the VIEs [Member] \| Xi'an Yanta District New Oriental School [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Nov. 26, 2002
Place of incorporation (or establishment)/ operation	PRC
Major Subsidiaries and Schools of the VIEs [Member] \| Nanjing Gulou New Oriental Advanced Study School [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Nov. 28, 2002
Place of incorporation (or establishment)/ operation	PRC
Major Subsidiaries and Schools of the VIEs [Member] \| Beijing New Oriental Dogwood Cultural Communications Co., Ltd [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	May 16, 2003
Place of incorporation (or establishment)/ operation	PRC
Major Subsidiaries and Schools of the VIEs [Member] \| Beijing New Oriental Vision Overseas Consultancy Co., Ltd [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Feb. 19, 2004
Place of incorporation (or establishment)/ operation	PRC
Major Subsidiaries and Schools of the VIEs [Member] \| Hangzhou New Oriental Advanced Study School [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Jul. 21, 2005
Place of incorporation (or establishment)/ operation	PRC
Major Subsidiaries and Schools of the VIEs [Member] \| Beijing Chaoyang District Kindergarten of Stars [Member]
Variable Interest Entities [Line Items]
Date of incorporation or acquisition	Nov. 20, 2007
Place of incorporation (or establishment)/ operation	PRC

Organization and Principal Activities - Additional Information (Detail) - Agreement	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Product Information [Line Items]
Renewal of trade mark registration	10 years
Exclusive service agreement renewal term	10 years
Notice period of agreement termination	30 days
Number of new equity pledged agreements	5
Century Friendship [Member] \| Previously Held Equity Interest [Member]
Product Information [Line Items]
Equity interest of Century Friendship prior to the transfer	53.00%
Minimum [Member]
Product Information [Line Items]
Operating services fee percentage from revenue	2.00%
Maximum [Member]
Product Information [Line Items]
Operating services fee percentage from revenue	6.00%
Variable interest entities (VIEs) [Member]
Product Information [Line Items]
Shareholding percentage of Mr. Yu	12.46%
Credit Concentration Risk [Member] \| Sales Revenue, Net [Member]
Product Information [Line Items]
Concentration risk percentage	96.50%	98.70%	98.80%
Credit Concentration Risk [Member] \| Assets, Total [Member]
Product Information [Line Items]
Concentration risk percentage	74.00%	67.50%	71.20%
Credit Concentration Risk [Member] \| Liabilities, Total [Member]
Product Information [Line Items]
Concentration risk percentage	93.90%	90.50%	95.80%

Organization and Principal Activities - Balances and Amounts of Company's WFOEs and VIEs (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Variable Interest Entities [Line Items]
Total current assets	$ 3,756,420	$ 3,466,242	$ 2,941,914
Total assets	6,556,885	4,646,559	3,977,712
Total current liabilities	2,479,364	2,006,224	1,750,884
Total liabilities	3,687,074	2,121,462	1,763,017
Net revenues	3,578,682	3,096,491	2,447,430
Net income	413,333	238,065	296,130
Net cash provided by operating activities	804,455	805,648	781,127
Net cash used in investing activities	(1,256,370)	(574,712)	(407,143)
Net cash used in financing activities	(17,862)	266,649	(74,881)
Variable interest entities (VIEs) [Member]
Variable Interest Entities [Line Items]
Total current assets	2,385,315	2,179,752	2,081,374
Total non-current assets	2,463,751	957,650	750,316
Total assets	4,849,066	3,137,402	2,831,690
Total current liabilities	2,395,977	1,900,440	1,674,857
Total non-current liabilities	1,066,541	18,607	13,782
Total liabilities	3,462,518	1,919,047	1,688,639
Net revenues	3,453,555	3,056,537	2,417,203
Net income	575,210	575,614	479,190
Net cash provided by operating activities	675,015	536,631	711,591
Net cash used in investing activities	(780,310)	(450,569)	(429,265)
Net cash used in financing activities	$ (45,188)	$ (27,691)	$ (96,429)

Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Receivables [Abstract]
Beginning balance	$ 751	$ 1,399	$ 1,180
Charge during the year	329	146	576
Written-off	(374)	(794)	(357)
Ending balance	$ 706	$ 751	$ 1,399

Significant Accounting Policies - Estimated Useful Lives of Assets (Detail)	12 Months Ended
	May 31, 2020
Transportation equipment [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	10 years
Furniture and education equipment [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	5 years
Computer equipment and software [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	3 years
Leasehold Improvements [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	Shorter of the lease term or estimated useful life
Minimum [Member] \| Buildings [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	20 years
Maximum [Member] \| Buildings [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	50 years

Significant Accounting Policies - Summary of Estimated Useful Lives of Intangible Assets (Detail)	12 Months Ended
	May 31, 2020
Trademark [Member]
Estimated useful lives of intangible assets [Line items]
Estimated useful lives	10 years
License [Member]
Estimated useful lives of intangible assets [Line items]
Estimated useful lives	20 years
Student base [Member]
Estimated useful lives of intangible assets [Line items]
Estimated useful lives	1 year 9 months
Favorable lease [Member]
Estimated useful lives of intangible assets [Line items]
Estimated useful lives	8 years 8 months 1 day
Courseware [Member]
Estimated useful lives of intangible assets [Line items]
Estimated useful lives	3 years

Significant Accounting Policies - Additional Information (Detail) - USD ($)
$ in Thousands

2 Months Ended

10 Months Ended

11 Months Ended

12 Months Ended

Apr. 01, 2019

Jun. 01, 2018

May 31, 2019

Apr. 30, 2018

Mar. 31, 2019

May 31, 2020

May 31, 2019

May 31, 2018

Jun. 01, 2019

Significant Of Accounting Policies [Line Items]

Impairment loss on goodwill

$ 0

$ 5,245

$ 0

Impairment losses

$ 0

Percentage of ownership interest in voting stock considered to exist significant influence over investee company

20.00%

Value added tax

16.00%

Vat on sales

16.00%

6.00%

Excess of refund

3.00%

Accounts receivable

$ 3,300

$ 4,178

3,300

3,179

Deferred revenue

1,301,103

1,324,384

1,301,103

1,270,195

Refund liability

^[1]

15,783

15,955

15,783

11,541

Revenues

3,578,682

3,096,491

2,447,430

Total advertising expenses

105,538

72,386

55,936

Government subsidies received

43,476

3,684

2,945

Aggregate amounts denominated in RMB

1,105,190

$ 855,654

1,105,190

989,070

Amortization term of long term debt

1 year

Lease right-of-use assets

$ 1,425,466

$ 1,254,595

Lease liabilities

1,462,162

$ 1,238,080

Lease liabilities, Current

384,239

Educational programs and services [Member]

Significant Of Accounting Policies [Line Items]

Revenues

3,040,741

Other Current Liabilities [Member]

Significant Of Accounting Policies [Line Items]

Refund liability

76,221

94,006

76,221

68,185

Contract With Customer Assets [Member]

Significant Of Accounting Policies [Line Items]

Accounts receivable

3,300

4,178

3,300

3,137

Contract With Customer Liability [Member]

Significant Of Accounting Policies [Line Items]

Deferred revenue

$ 1,301,103

$ 1,324,384

$ 1,301,103

$ 1,202,010

Inter Company Sales [Member] | Books and Other Services [Member]

Significant Of Accounting Policies [Line Items]

Vat on sales

6.00%

Sales [Member] | Books and Other Services [Member]

Significant Of Accounting Policies [Line Items]

Vat on sales

9.00%

11.00%

10.00%

Accounting Standards Update 2016-01 [Member] | Available-for-sale Securities [Member]

Significant Of Accounting Policies [Line Items]

Cumulative effect on retained earnings, net of tax

$ 97,929

Sales Revenue, Net [Member] | Self Developed Software Product [Member]

Significant Of Accounting Policies [Line Items]

Vat on sales

13.00%

Minimum [Member]

Significant Of Accounting Policies [Line Items]

Percentage of ownership interest in voting stock considered to exist significant influence over investee company

20.00%

Maximum [Member]

Significant Of Accounting Policies [Line Items]

Percentage of ownership interest in voting stock considered to exist significant influence over investee company

50.00%

Customer Concentration Risk [Member] | Sales Revenue, Net [Member]

Significant Of Accounting Policies [Line Items]

Concentration risk

10.00%

Credit Concentration Risk [Member] | Sales Revenue, Net [Member]

Significant Of Accounting Policies [Line Items]

Concentration risk

96.50%

98.70%

98.80%

Credit Concentration Risk [Member] | Accounts Receivable [Member]

Significant Of Accounting Policies [Line Items]

Concentration risk

10.00%

Land use rights [Member] | Minimum [Member]

Significant Of Accounting Policies [Line Items]

Estimated useful lives

38 years 6 months

Land use rights [Member] | Maximum [Member]

Significant Of Accounting Policies [Line Items]

Estimated useful lives

50 years

[1]	Refundable fees received from students represent (1) the miscellaneous expenses other than tuition fees received from students which will be paid out on their behalf; and (2) tuition fees refundable to students for classes withdrawn.

Business Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands			12 Months Ended
	Sep. 30, 2018	Oct. 31, 2017	May 31, 2020	May 31, 2019	May 31, 2018	Dec. 31, 2018	Dec. 01, 2018	Nov. 01, 2018	Oct. 01, 2017	May 31, 2017
Business Acquisition [Line Items]
Goodwill			$ 80,366	$ 79,614	$ 31,729
Ainuo Shida [Member]
Business Acquisition [Line Items]
Business acquisition, equity interest		100.00%
Business acquisition, total consideration		$ 11,012	931	$ 2,043	5,309
Hangzhou Shengshen [Member]
Business Acquisition [Line Items]
Business acquisition, date				Oct. 31, 2017
Goodwill									$ 9,809
Deferred revenue									$ 5,566
Suzhou Hongyi [Member]
Business Acquisition [Line Items]
Cash consideration				$ 27,458
Business acquisition, equity interest	100.00%
Business acquisition, total consideration	$ 42,608
Goodwill								$ 37,860
Contingent consideration liability	$ 42,608			15,150
Other Acquisitions [Member]
Business Acquisition [Line Items]
Cash consideration			376	381
Business acquisition, total consideration					6,992
Cash and cash equivalents					8,639
Intangible assets					2,294
Goodwill					6,383
Deferred revenue					15,215
Non-controlling interests					1,683
Asia Pacific Montessori Education Co Ltd [Member]
Business Acquisition [Line Items]
Cash consideration				$ 8,784
Business acquisition, equity interest				100.00%		65.00%				35.00%
Business acquisition, total consideration			1,071	$ 12,600	11,216
Goodwill							$ 17,043
Remeasurement Gain(Loss) In Respect Of Investments Made In Business Acquisition				4,298
Other Acquisitions [Member]
Business Acquisition [Line Items]
Cash consideration			43	398	$ 5,902
Business acquisition, total consideration				441
Cash and cash equivalents				107
Goodwill				$ 729
Nanjing Qicheng [Member]
Business Acquisition [Line Items]
Cash consideration			346
Business acquisition, total consideration			1,153
Intangible assets			1,149
Goodwill			2,815
Contingent consideration liability			807
Business Acquisition Two Thousand and Twenty [Member]
Business Acquisition [Line Items]
Business acquisitions, Actual revenue			829
Business acquisitions, Actual net income loss			$ 1,115

Business Acquisitions - Purchase Price Allocation (Detail) - USD ($) $ in Thousands	Dec. 01, 2018	Nov. 01, 2018	Oct. 01, 2017	May 31, 2020	May 31, 2019	May 31, 2018
Business Acquisition [Line Items]
Goodwill				$ 80,366	$ 79,614	$ 31,729
Other non-current assets				$ 22,278	$ 26,776	$ 19,577
Hangzhou Shengshen [Member]
Business Acquisition [Line Items]
Cash			$ 3,571
Other current assets			704
Property and equipment			1,148
Goodwill			9,809
Deferred revenue			(5,566)
Other current liabilities			(1,562)
Deferred tax liabilities			(969)
Total			$ 11,012
Hangzhou Shengshen [Member] \| Property, Plant and Equipment [Member] \| Minimum [Member]
Business Acquisition [Line Items]
Amortization period			1 year
Hangzhou Shengshen [Member] \| Property, Plant and Equipment [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Amortization period			5 years
Hangzhou Shengshen [Member] \| Trademark [Member]
Business Acquisition [Line Items]
Intangible assets			$ 1,713
Amortization period			5 years
Hangzhou Shengshen [Member] \| Student base [Member]
Business Acquisition [Line Items]
Intangible assets			$ 2,164
Amortization period			3 years
Suzhou Hongyi [Member]
Business Acquisition [Line Items]
Cash		$ 1,321
Other current assets		2,020
Property and equipment		402
Goodwill		37,860
Other current liabilities		(3,871)
Deferred tax liabilities		(1,625)
Total		$ 42,608
Suzhou Hongyi [Member] \| Property, Plant and Equipment [Member] \| Minimum [Member]
Business Acquisition [Line Items]
Amortization period		1 year
Suzhou Hongyi [Member] \| Property, Plant and Equipment [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Amortization period		5 years
Suzhou Hongyi [Member] \| Trademark [Member]
Business Acquisition [Line Items]
Intangible assets		$ 1,845
Amortization period		5 years
Suzhou Hongyi [Member] \| Student base [Member]
Business Acquisition [Line Items]
Intangible assets		$ 4,656
Amortization period		3 years
Asia Pacific Montessori Education Co Ltd [Member]
Business Acquisition [Line Items]
Cash	$ 1,269
Other current assets	695
Property and equipment	251
Goodwill	17,043
Other non-current assets	2,086
Other current liabilities	(4,189)
Deferred tax liabilities	(787)
Fair value of the 35% equity interests previously held	(6,917)
Total	$ 12,600
Asia Pacific Montessori Education Co Ltd [Member] \| Minimum [Member]
Business Acquisition [Line Items]
Amortization period	1 year
Asia Pacific Montessori Education Co Ltd [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Amortization period	5 years
Asia Pacific Montessori Education Co Ltd [Member] \| Trademark [Member]
Business Acquisition [Line Items]
Intangible assets	$ 2,085
Amortization period	5 years
Asia Pacific Montessori Education Co Ltd [Member] \| Student base [Member]
Business Acquisition [Line Items]
Intangible assets	$ 1,064
Amortization period	3 years

Business Acquisitions - Purchase Price Allocation (Parenthetical) (Detail)	Dec. 01, 2018
Asia Pacific Montessori Education Co Ltd Asia Pacific [Member]
Business Acquisition [Line Items]
Business acquisition, equity interest	35.00%

Business Acquisitions - Pro forma Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2017
Business Acquisition [Line Items]
Pro forma net revenues	$ 3,100,364	$ 2,451,735	$ 1,815,660
Pro forma net income attributable to New Oriental Education and Technology Group Inc.	$ 238,794	$ 296,697	$ 275,685
Pro forma net income per share – basic		$ 1.88	$ 1.75
Pro forma net income per share – diluted	$ 1.50	1.87	$ 1.75
Other Acquisitions [Member]
Business Acquisition [Line Items]
Pro forma net income per share – basic	$ 1.51	$ 1.88

Short-Term Investments - Summary of Short-Term Investments (Detail) - USD ($) $ in Thousands	May 31, 2020	May 31, 2019	May 31, 2018
Short-term Investments [Abstract]
Held-to-maturity investments	$ 2,318,280	$ 1,668,689	$ 1,623,763

Short-Term Investments - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Short-term Investments [Abstract]
Held-to-maturity investments for OTTI recognized	$ 0	$ 0	$ 0

Prepaid Expenses and Other Current Assets, Net - Components of Prepaid Expenses and Other Current Assets, Net (Detail) - USD ($)
$ in Thousands

May 31, 2020

May 31, 2019

May 31, 2018

Prepaid Expenses And Other Current Assets [Abstract]

Advances to suppliers

$ 49,547

$ 45,665

$ 43,913

Prepaid rents

^[1]

39,706

52,794

56,531

Interest receivables

33,488

23,856

23,647

Staff advances

^[2]

24,712

14,811

9,544

Receivable from third parties' platforms

10,593

9,831

5,967

Rental deposits

10,326

9,539

10,953

Prepaid advertising fees

7,607

4,564

6,917

VAT recoverable

5,562

2,297

3,493

Deposits of advertising and decoration

2,594

3,020

3,342

Prepaid property taxes and other taxes

779

455

212

Others

^[3]

14,639

33,093

18,490

Prepaid expense and other assets current before allowance

199,553

199,925

183,009

Less: allowance for other receivables

(149)

(248)

(914)

Prepaid expenses and other current assets

$ 199,404

$ 199,677

$ 182,095

[1]	Prepaid rents represent the prepayment of rent related to leases less than 12 months.
[2]	Staff advances were provided to staff for travelling and business related use and are expensed as incurred.
[3]	Others primarily included prepaid maintenance fees, other receivables and other miscellaneous prepayments.

Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	May 31, 2020	May 31, 2019	May 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,102,688	$ 863,762	$ 741,031
Less: accumulated depreciation	(453,218)	(342,106)	(275,940)
Exchange differences	22,985	10,359	(15,499)
Property and equipment, net	672,455	532,015	449,592
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	178,782	142,047	156,324
Transportation equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,172	9,565	9,936
Furniture and education equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	195,262	153,674	128,670
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	95,385	70,995	65,227
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	579,231	451,105	349,953
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 44,856	$ 36,376	$ 30,921

Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 146,310	$ 110,042	$ 77,081

Land Use Rights, Net - Land Use Rights, Net (Detail) - USD ($) $ in Thousands	May 31, 2020	May 31, 2019	May 31, 2018
Real Estate [Abstract]
Land use rights	$ 7,696	$ 7,955	$ 5,315
Less: accumulated amortization	(1,842)	(1,680)	(1,417)
Exchange differences	183	130	(113)
Land use rights, net	$ 6,037	$ 6,405	$ 3,785

Land Use Rights, Net - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Land Use Rights [Line Items]
Amortization expenses of land use rights	$ 162	$ 263	$ 110
Future amortization expense next twelve months	4,068
Future amortization expense year two	2,684
Future amortization expense year three	1,774
Future amortization expense year four	789
Future amortization expense year five	345
Future amortization expense thereafter	357
Land use rights [Member]
Land Use Rights [Line Items]
Future amortization expense next twelve months	810
Future amortization expense year two	810
Future amortization expense year three	810
Future amortization expense year four	810
Future amortization expense year five	810
Future amortization expense thereafter	$ 5,227

Intangible Assets, Net - Schedule of Intangible Assets, Net (Detail) - USD ($) $ in Thousands	May 31, 2020	May 31, 2019	May 31, 2018
Intangible assets with indefinite lives:
Intangible assets with indefinite lives, Gross	$ 229	$ 238	$ 256
Intangible assets with finite lives:
Intangible assets, gross	23,306	22,784	14,121
Less: accumulated amortization	(13,515)	(8,985)	(5,272)
Exchange differences	455	136	(305)
Intangible assets	10,246	13,935	8,544
Trademark [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	9,170	9,109	5,575
Courseware [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	116	120	129
Student base [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	12,719	12,223	7,014
Favorable lease [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	657	679	732
License [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	$ 415	$ 415	$ 415

Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expenses	$ 4,530	$ 3,699	$ 1,839
Future amortization expense next twelve months	4,068
Future amortization expense year two	2,684
Future amortization expense year three	1,774
Future amortization expense year four	789
Future amortization expense year five	345
Future amortization expense thereafter	$ 357

Goodwill, Net - Schedule of Goodwill, Net (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Beginning balance	$ 86,541	$ 33,411	$ 15,765
Acquisition	2,815	55,632	16,192
Exchange differences	(2,063)	(2,502)	1,454
Ending balance	87,293	86,541	33,411
Accumulated impairment	(6,927)	(6,927)	(1,682)
Goodwill, net	$ 80,366	$ 79,614	$ 31,729

Goodwill, Net - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Goodwill impairment	$ 0	$ 5,245	$ 0

Long Term Investments, Net - Schedule of Long Term Investments, Net (Detail) - USD ($)
$ in Thousands

May 31, 2020

May 31, 2019

May 31, 2018

Mar. 31, 2014

Schedule of Equity Method Investments [Line Items]

Long term investments

$ 431,101

$ 404,704

$ 433,333

Sunlands [Member]

Schedule of Equity Method Investments [Line Items]

Equity securities with readily determinable fair value

^[1]

21,440

37,802

134,423

Shengtong [Member]

Schedule of Equity Method Investments [Line Items]

Equity securities with readily determinable fair value

^[2]

4,066

6,839

9,261

Tarena [Member]

Schedule of Equity Method Investments [Line Items]

Equity securities with readily determinable fair value

^[3]

2,190

3,200

9,610

Long term investments

$ 13,500

Tibet Tianli [Member]

Schedule of Equity Method Investments [Line Items]

Equity securities without readily determinable fair value

^[4]

10,512

4,346

EEO Education Tech [Member]

Schedule of Equity Method Investments [Line Items]

Equity securities without readily determinable fair value

^[5]

8,774

9,069

9,767

VM EDU Fund [Member] | Equity Method Investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investments

^[6]

56,734

Golden Finance [Member] | Available for sale securities investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investments

^[7]

59,947

61,963

86,937

Uhozz [Member] | Available for sale securities investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investments

^[8]

16,350

12,826

Alo7.com [Member] | Available for sale securities investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investments

^[9]

14,289

14,395

Lele [Member] | Available for sale securities investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investments

^[10]

11,680

11,251

9,157

New Oriental Education Industry Fund [Member] | Equity Method Investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investments

^[11]

67,057

67,834

Other investments [Member]

Schedule of Equity Method Investments [Line Items]

Equity securities without readily determinable fair value

^[12]

30,797

30,663

28,740

Other investments [Member] | Equity Method Investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investments

^[13]

27,716

20,191

9,131

Other investments [Member] | Available for sale securities investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investments

^[14]

$ 99,549

$ 120,907

$ 109,086

[1]	In January 2016, the Group invested US$12,310 in Sunlands, a company engaged in online education specific to vocational qualification training, for subscribing the convertible bonds. In July 2016, the Group converted all of the convertible bonds into redeemable preferred shares of Sunlands for a 4.9% equity interests. Additionally, the Group also invested an additional US$12,205 redeemable preferred shares for another 4.9% equity interests in Sunlands during July 2016. Subsequent to the additional investment, the Group holds 9.8% equity interest in Sunlands. On March 23, 2018, Sunlands was listed in the New York Stock Exchange Market. All of the preferred shares were converted to 529,426 Class A ordinary shares immediately upon the completion of the listing. Subsequent to the listing, the Group invested an additional US$10,000 and obtained 34,783 Class A ordinary shares in April 2018 and held 8% aggregate equity interests in Sunlands. Unrealized gains of US$101,779 was reported in other comprehensive income for the year ended May 31, 2018. Upon the adoption of ASU 2016-01, the investment was reclassified from available-for-sale investment to equity security with readily determinable fair value on June 1, 2018, and losses of US$ 96,621 and US$ 16,362 were recorded in loss from fair value change of long-term investments for the years ended May 31, 2019 and 2020, respectively, on the Group’s consolidated statements of operations.
[2]	In April 2015, the Group acquired 18% equity interests in Beijing ROBOROBO Technology Co., Ltd. (“ROBOROBO”) for a cash consideration of US$4,356. Roborobo is a company applying various robots build training course for kids with different ages. In February 2017, the Group disposed all of the ownership in ROBOROBO, in exchange for 1.87% common shares issued by Shengtong, which is a listed A-share company in China. Realized gain of US$7,086 was recognized during the year ended May 31, 2017. The equity interests acquired in Shengtong were classified as equity security with readily determinable fair value. Unrealized loss of US$1,450 was reported in other comprehensive income for the year ended May 31, 2018. Upon the adoption of ASU 2016-01, the investment was reclassified from available-for-sale investment to equity security with readily determinable fair value on June 1, 2019, losses of US$1,605 and US$1,079 were recorded in loss from fair value change of long-term investments for the years ended May 31, 2019 and 2020, respectively.
[3]	In March 2014, the Group invested US$13,500 in Tarena, a NASDAQ listed company that provides IT professional education services in China, for 3% equity interests. In July 2017, the Group sold 1% equity interest in Tarena to third parties and the realized gain of US$4,545 was recognized in investment income for the year ended May 31, 2018. Unrealized loss of US$7,040 was reported in other comprehensive income for the year ended May 31, 2018. Upon the adoption of ASU 2016-01, the investment was reclassified from available-for-sale investment to equity security with readily determinable fair value on June 1, 2019, losses of US$6,410 and US$1,010 were recorded in loss from fair value change of long-term investments for the years ended May 31, 2019 and 2020, respectively.
[4]	In December 2018, the Group invested 5% equity interests in Tibet Tianli, a company engaged in the developing educational products. In April 2020, the Group further subscribed 5% equity interests. The Group accounted for the investment as equity securities without readily determinable fair values as Tibet Tianli is a private company without readily determinable fair value. As of May 31, 2020, the Group holds 9.75% of the total equity interests in Tibet Tianli after the dilution. For the years ended May 31, 2018, 2019 and 2020, no impairment loss was recorded from this investment.
[5]	In April 2017, the Group acquired 10% equity interest in EEO, a company engaged in the business of developing on-line classroom product which were accounted for using the cost method because it is not in-substance common share for the years ended May 31, 2018. After the adoption of ASU 2016-01, the Group accounted for the equity investments using the measurement alternative when the equity method is not applicable and there is no readily determinable fair value for the investments. For the years ended May 31, 2018 2019 and 2020, no impairment loss was recorded in regard to the investment.
[6]	In June 2019, VM EDU Fund I, LP, a market-driven investment entity, was established with total committed capital of US$100,000. The Group participates in VM EDU Fund I, LP as a limited partner and invested US$56,149 in VM EDU Fund I, LP. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and does not have control over VM EDU Fund I, LP.
[7]	In April 2015, the Group invested 9.75% equity interests in Golden Finance, a company engaged in training programs business associated with finance and business management. In November 2015, the Group further subscribed 9.75% equity interests. During the year ended May 31, 2019, the Group disposed of 7.2% equity interests in Golden Finance with total consideration of US$33,156, and the remaining shares were diluted to 12.3%. Gain of US$23,096 was recognized as realized gain from long-term investments in the consolidated statements of operations for the year ended May 31, 2019. The Group accounts for the investment as available-for-sale investments since the investee’s preferred shares held are redeemable and determined to be debt securities and measured at fair value.
[8]	In May 2015, the Group invested in Uhozz, a company providing oversea rental agency services, for 10% equity interests with redemption and liquidation preferences. In March 2018, the Group further subscribed 15.18% series B preferred shares. The Group accounted for the investment as available-for-sale investments since the investee’s preferred shares held are redeemable and determined to be debt securities and measured them at fair value.
[9]	In March 2012, the Group acquired a convertible promissory note from Alo7.com for US$1,000, which entitled the Group to automatically convert the note into equity security upon certain conditions were met. In July 2012, the Group converted the US$1,000 promissory note into convertible redeemable preferred shares for a 3.4% equity interests in Alo7.com on an as-converted basis. In 2014, the Group further invested redeemable preferred shares into Alo7.com. As of May 31, 2020, the Company held a 14.3% equity interests in Alo7.com.
[10]	In September 2015, the Group invested in Lele, a company providing online learning and tutoring services for students from kindergarten through 12th grade, to acquire 48,796,296 convertible redeemable preferred shares for an 8.5% equity interests. In December 2018, the Group further in invested series C preferred shares in Lele. As of May 31, 2020, the Group held a 7.8% equity interests in Lele. The investment was classified as available-for-sale investment as the Group determined the preferred shares were debt securities due to substantive redemption right and measured the investment at fair value.
[11]	In July 2018, Education Industry Fund was established with the total committed capital of US$224,000. There are two general partners in the fund, which include an entity invested by Mr. Yu and an unrelated third party. The Group participates in Education Industry Fund as a limited partner and invested US$75,000 in Education Industry Fund as of May 31, 2020. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and owns 33% interest in Education Industry Fund.
[12]	The Group holds several insignificant investments in third-party private companies and has no ability to exercise significant influence over the investees, which were accounted for using the cost method prior to the adoption of ASU 2016-01. After the adoption of ASU 2016-01, the Group accounted for these equity investments using the measurement alternative when cost method is not applicable and there is no readily determinable fair value for the investments. The Group was recorded nil, nil and US$ 9,096 impairment loss on these investment during the years ended May 31, 2018, 2019 and 2020, respectively.
[13]	The Group holds from 6.86% to 50% equity interests in other 15 third-party companies through investments in their common shares or in-substance common shares. The majority of the long-term investments are engaged in the business of providing educational 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, even though the Group holds less than 20% equity interests in some of the investees.
[14]	Other available-for-sale investments represent several insignificant individual investments classified as available-for-sale investments as of May 31, 2018, 2019 and 2020. Realized gain of US$2,821, US$3,283 and US$407 were recorded in realized gain from long-term investments for the years ended May 31, 2018, 2019 and 2020, respectively. The Group recognized impairment losses from long-term investments amounting to US$980, US$5,919 and US$31,750 for the years ended May 31, 2018, 2019 and 2020, respectively, as the Group believes the carrying value of these investments were no longer recoverable.

Long Term Investments, Net - Schedule of Long Term Investments, Net (Parenthetical) (Detail) - USD ($)
$ in Thousands

1 Months Ended

12 Months Ended

Mar. 23, 2018

Apr. 30, 2020

Jun. 30, 2019

Dec. 31, 2018

Jul. 31, 2018

Apr. 30, 2018

Jul. 31, 2017

Feb. 28, 2017

Mar. 31, 2014

May 31, 2020

May 31, 2019

May 31, 2018

May 31, 2017

Mar. 31, 2018

Apr. 30, 2017

Jul. 31, 2016

Jan. 31, 2016

Nov. 30, 2015

Sep. 30, 2015

May 31, 2015

Apr. 30, 2015

Jul. 31, 2012

Mar. 31, 2012

Mar. 05, 2012

Schedule of Equity Method Investments [Line Items]

Loss from equity method investments

$ 1,385

$ (2,289)

$ (379)

Long term investment

$ 431,101

404,704

433,333

Investment ownership interest

20.00%

Payments made to acquire long term investments

$ 92,087

128,970

67,350

Gain On Sale Of Equity Investments

407

26,379

7,366

Impairment loss from long-term investments

31,750

5,919

980

New Oriental Education Industry Fund [Member]

Schedule of Equity Method Investments [Line Items]

Investment ownership interest

33.00%

Total committed capital

$ 224,000

Committed to invest

$ 75,000

New Oriental Education Industry Fund [Member] | Equity Method Investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investment

^[1]

$ 67,057

67,834

Minimum [Member]

Schedule of Equity Method Investments [Line Items]

Investment ownership interest

20.00%

Maximum [Member]

Schedule of Equity Method Investments [Line Items]

Investment ownership interest

50.00%

Other Long-term Investments [Member]

Schedule of Equity Method Investments [Line Items]

Loss from equity method investments

$ 9,096

Gain On Sale Of Equity Investments

407

3,283

2,821

Impairment loss from long-term investments

31,750

5,919

980

Other Long-term Investments [Member] | Equity Method Investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investment

^[2]

$ 27,716

$ 20,191

9,131

Golden Finance [Member]

Schedule of Equity Method Investments [Line Items]

Investment ownership interest

9.75%

Percentage Of Equity Method Investment Diluted

12.30%

Gain On Sale Of Equity Investments

$ 23,096

Proceeds From Sale Of Equity Method Invstments

$ 33,156

Alo7.com [Member]

Schedule of Equity Method Investments [Line Items]

Long term investment

$ 1,000

Investment ownership interest

14.30%

Noncontrolling interest, equity ownership percentage

3.40%

Uhozz [Member]

Schedule of Equity Method Investments [Line Items]

Investment ownership interest

15.18%

10.00%

Sunlands [Member]

Schedule of Equity Method Investments [Line Items]

Investment ownership interest

8.00%

Unrealised Gain (loss) on Investments

101,779

Loss Arising From Change In Fair Value Of Investments

$ (16,362)

$ (96,621)

Sunlands [Member] | Redeemable Preferred Shares [Member]

Schedule of Equity Method Investments [Line Items]

Long term investment

$ 12,205

Investment ownership interest

9.80%

4.90%

Sunlands [Member] | Series A Preferred Stock [Member]

Schedule of Equity Method Investments [Line Items]

Equity ownership interest

$ 10,000

Long term investments, shares

529,426

34,783

Sunlands [Member] | Convertible Bond [Member]

Schedule of Equity Method Investments [Line Items]

Long term investment

$ 12,310

Tarena [Member]

Schedule of Equity Method Investments [Line Items]

Long term investment

$ 13,500

Unrealised Gain (loss) on Investments

(7,040)

Equity ownership interest classified as available for sale

3.00%

Equity interest sold

1.00%

Gain On Sale Of Equity Investments

4,545

Loss Arising From Change In Fair Value Of Investments

$ (1,010)

(6,410)

Lele Global [Member]

Schedule of Equity Method Investments [Line Items]

Equity ownership interest

7.80%

Lele Global [Member] | Series B One Redeemable Convertible Preferred Stock [Member]

Schedule of Equity Method Investments [Line Items]

Equity ownership interest

8.50%

Convertible redeemable preferred shares acquired

48,796,296

ROBOROBO [Member]

Schedule of Equity Method Investments [Line Items]

Long term investment

$ 4,356

Investment ownership interest

18.00%

Unrealised Gain (loss) on Investments

(1,450)

Gain On Sale Of Equity Investments

$ 7,086

Equity securities gain (loss) on change in fair value

$ (1,079)

(1,605)

Shengtong [Member]

Schedule of Equity Method Investments [Line Items]

Business combination, consideration transferred, equity interests issued or issuable, percent

1.87%

EEO Education Tech [Member]

Schedule of Equity Method Investments [Line Items]

Loss from equity method investments

$ 0

Investment ownership interest

10.00%

Tibet Tianli [Member] | Educational Programs And Services [Member]

Schedule of Equity Method Investments [Line Items]

Equity ownership interest classified as available for sale

5.00%

9.75%

VM EDU Fund I L P [Member]

Schedule of Equity Method Investments [Line Items]

Total committed capital

$ 100,000

VM EDU Fund I L P [Member] | Equity Method Investments [Member]

Schedule of Equity Method Investments [Line Items]

Long term investment

^[3]

$ 56,734

Payments made to acquire long term investments

$ 56,149

[1]	In July 2018, Education Industry Fund was established with the total committed capital of US$224,000. There are two general partners in the fund, which include an entity invested by Mr. Yu and an unrelated third party. The Group participates in Education Industry Fund as a limited partner and invested US$75,000 in Education Industry Fund as of May 31, 2020. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and owns 33% interest in Education Industry Fund.
[2]	The Group holds from 6.86% to 50% equity interests in other 15 third-party companies through investments in their common shares or in-substance common shares. The majority of the long-term investments are engaged in the business of providing educational 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, even though the Group holds less than 20% equity interests in some of the investees.
[3]	In June 2019, VM EDU Fund I, LP, a market-driven investment entity, was established with total committed capital of US$100,000. The Group participates in VM EDU Fund I, LP as a limited partner and invested US$56,149 in VM EDU Fund I, LP. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and does not have control over VM EDU Fund I, LP.

Long Term Investments, Net - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Schedule of Investments [Abstract]
Unrealized gain (loss) on available-for-sale investments	$ (748)	$ 19,483	$ 129,545

Fair Value Measurement - Schedule of Available-for-Sale Securities Included in Long Term Investments Measured and Recorded at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	May 31, 2020	May 31, 2019	Sep. 30, 2018	May 31, 2018
Suzhou Hongyi [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration payable (Note 3)		$ 15,150	$ 42,608
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities with readily determinable fair values	$ 27,696	47,841
Available-for-sale investments	201,815	224,760		$ 385,695
Total	229,511	287,751
Fair Value, Measurements, Recurring [Member] \| Suzhou Hongyi [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration payable (Note 3)		15,150
Quoted Prices in Active Market for Identical Assets Level 1 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities with readily determinable fair values	27,696	47,841
Available-for-sale investments				153,294
Total	27,696	47,841
Significant Other Observable Inputs Level 2 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investments	41,889	78,879		98,504
Total	41,889	78,879
Significant Other Observable Inputs Level 3 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investments	159,926	145,881		$ 133,897
Total	$ 159,926	161,031
Significant Other Observable Inputs Level 3 [Member] \| Fair Value, Measurements, Recurring [Member] \| Suzhou Hongyi [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration payable (Note 3)		$ 15,150

Fair Value Measurement - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Fair Value Measurements [Line Items]
Amount transfer from level 1 to level 2		$ 0
Amount transfer from level 2 to level 1	$ 0	0
Impairment loss related to acquired intangible assets	0	0	$ 0
Available-for-Sale Investments [Member]
Fair Value Measurements [Line Items]
Transfer to level 1 fair value measurements		$ 32,644,000	$ 32,644,000
Transfer to level 2	(5,713,000)
Transfer from level 2	$ 11,534,000

Fair Value Measurement - Reconciliation of The Fair Value Measurements of Assets And Liabilities Using Significant Unobservable Inputs (level 3) (Detail) - Level investments - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 161,031	$ 133,897	$ 123,029
Transfer to level 1 fair value measurements		(32,644)	(32,644)
Initial recognition	10,000	45,989
Transfer from level 2	11,534
Transfer to level 2	(5,713)
Unrealized gain (loss)	(16,926)	(18,855)	43,512
Ending balance	$ 159,926	$ 161,031	$ 133,897

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($)
$ in Thousands

May 31, 2020

May 31, 2019

May 31, 2018

Other Liabilities Disclosure [Abstract]

Accrued payroll

$ 331,172

$ 285,329

$ 212,677

Refund liability

^[1]

94,006

76,221

Payable for purchase of property and equipment

65,335

44,445

45,590

Accrued advertising fees

20,231

11,934

8,548

Refundable fees received from students

^[2]

15,955

15,783

11,541

Refundable deposits

^[3]

14,819

11,074

7,290

Rent payable

13,857

23,643

18,210

Welfare payable

12,612

12,897

9,187

Amounts reimbursable to employees

^[4]

12,674

19,366

16,157

Royalty fees payable

^[5]

6,696

7,724

4,410

Accrued professional service fees

6,199

1,943

1,134

Payable for investments and acquisitions

3,917

21,962

5,420

VAT payable

2,881

13,321

12,125

Other taxes payable

1,785

2,715

2,945

Others

^[6]

32,480

28,164

18,303

Total

$ 634,619

$ 576,521

$ 373,537

[1]	The refund liability is recognized for variable amount of the considerations received from clients and recorded as refund liability in accordance with Topic 606 as described in Note 2.
[2]	Refundable fees received from students represent (1) the miscellaneous expenses other than tuition fees received from students which will be paid out on their behalf; and (2) tuition fees refundable to students for classes withdrawn.
[3]	Refundable deposits represent student deposits for dormitory or other fees that will be refunded upon graduation and student security deposits refunded upon completion of the study tour.
[4]	Amounts reimbursable to employees include travelling and the business related expenses.
[5]	Royalty fees payable relate to payments to content providers for on-line learning programs and those to counterparties for copyrights and resource sharing.
[6]	Others primarily include transportation expenses, utility fees, property management fees and other miscellaneous expenses payable.

Lease - Additional Information (Detail) $ in Thousands	12 Months Ended
Lease - Additional Information (Detail) $ in Thousands	May 31, 2020 USD ($)
Lessee Disclosure [Abstract]
Operating lease cost	$ 392,168
Short-term lease cost	$ 9,028
weighted average remaining lease term	4 years 8 months 12 days
weighted average discount rate	4.20%
Lessee operating lease, lease not yet commenced contract value	$ 32,949

Lease - Summary of Supplemental Cash Flow Information (Details) $ in Thousands	12 Months Ended
	May 31, 2020 USD ($)
Disclosure Of Supplemental Cash Flow Information Of The Leases [Line Items]
Cash payments for the operating leases	$ 371,734
ROU assets obtained in exchange for the new operating lease liabilities	$ 639,545

Lease - Summary of Maturity Analysis of Annual Undiscounted Cash Flows (Details) - USD ($) $ in Thousands	May 31, 2020	Jun. 01, 2019
Lessee, Lease, Description [Line Items]
May 2021	$ 407,854
May 2022	367,805
May 2023	302,990
May 2024	225,387
May 2025	130,190
Therafter	176,984
Total future lease payments	1,611,210
Less:Imputed interest	(149,048)
Present value of operating lease liabilities	$ 1,462,162	$ 1,238,080

Lease - Summary of Future Minimum Lease Payments (Details)	May 31, 2019 USD ($)
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items]
May 2020	$ 360,972
May 2021	337,751
May 2022	297,379
May 2023	212,814
May 2024	143,899
Thereafter	162,882
Total future lease payments	$ 1,515,697

Long-term loan - Additional Information (Detail) - USD ($)	1 Months Ended	6 Months Ended	18 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	Dec. 14, 2018
Line of Credit Facility [Line Items]
Additional long term debt				$ 250,000,000
Long-term Debt, Term				3 years
Debt Issuance Costs Paid		$ 3,543,000
London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Description Of Variable Rate Of Interest			165 basis points over London Interbank Offered Rate
Variable Interest Rate Spread			165.00%
Line Of Credit Facility,Interest Rate Description			The interest is payable on a quarterly basis.
Revolving Facilities Agreement A [Member]
Line of Credit Facility [Line Items]
Long-term Debt, Term				3 years
Term Loan Facility				$ 100,000,000
Line Of Credit Facility Unused Commitement Fee Percentage	0.30%
Drawdowns In Respect Of Line Of Credit		55,000,000
Revolving Facilities Agreement B [Member]
Line of Credit Facility [Line Items]
Term Loan Facility				100,000,000
Line Of Credit Facility Unused Commitement Fee Percentage	0.50%
Drawdowns In Respect Of Line Of Credit		45,000,000
Revolving Facilities Agreement C [Member]
Line of Credit Facility [Line Items]
Drawdowns In Respect Of Line Of Credit		$ 20,000,000
Additional Debt [Member]
Line of Credit Facility [Line Items]
Additional long term debt	$ 50,000,000		$ 50,000,000
Debt [Member]
Line of Credit Facility [Line Items]
Additional long term debt				$ 50,000,000

Long-term loan - Summary of Long Term Debt Maturities (Details) - USD ($) $ in Thousands	May 31, 2020	May 31, 2019
Long Term Debt Maturities Repayment Terms details as follows :
Secured bank loan	$ 117,881	$ 96,457
Within a Period Of More Than One Year But Not Exceeding Two Years
Long Term Debt Maturities Repayment Terms details as follows :
Secured bank loan	$ 117,881
Within a Period Of More Than Two Years But Not Exceeding Five Years
Long Term Debt Maturities Repayment Terms details as follows :
Secured bank loan		$ 96,457

Redeemable Non-Controlling Interestes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	Mar. 31, 2019	May 31, 2018	May 17, 2018	Apr. 24, 2018
Redeemable Noncontrolling Interest [Line Items]
Redeemable non-controlling interests	$ 0	$ 0		$ 206,624
Preferred Stock, Conversion terms	initial conversion ratio of 1:1
Koolearn Holding [Member]
Redeemable Noncontrolling Interest [Line Items]
Equity method investment, ownership percentage				68.00%
Redeemable non-controlling interests			$ 206,624
Series B Preferred Stock [Member]
Redeemable Noncontrolling Interest [Line Items]
Preferred Stock, Redemption Premium Percentage	10.00%
Preferred Stock, Redemption Price Percentage	100.00%
Series A Preferred Stock [Member]
Redeemable Noncontrolling Interest [Line Items]
Shares issued,consideration					$ 113,925
Preferred Stock, Voting Rights	Preferred shareholders have the right to one vote for each ordinary share
Preferred Stock, Redemption Price Percentage	120.00%
Convertible Redeemable Participating Preferred Stock [Member] \| Series B Preferred Stock [Member] \| Koolearn Holding [Member]
Redeemable Noncontrolling Interest [Line Items]
Shares issued,shares						64,396,251
Shares issued,consideration						$ 92,699
Convertible Redeemable Participating Preferred Stock [Member] \| Series A Preferred Stock [Member] \| Koolearn Holding [Member]
Redeemable Noncontrolling Interest [Line Items]
Shares issued,shares					90,416,181

Common Shares and Treasury Stock - Movement of the outstanding common shares and treasury stock (Detail) - shares	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Balance, shares	158,801,714	158,379,387
Balance, shares	158,801,714	158,801,714	158,379,387
Common Stock [Member]
Balance, shares	157,849,714	158,319,910	157,687,444
Reissuance of treasury stock for NES	690,366	59,477	631,966
Reissuance of treasury stock for the exercises of options			500
Issuance of common share for NES		422,327
Shares repurchase		(952,000)
Balance, shares	158,540,080	157,849,714	158,319,910
Treasury Stock [Member]
Balance, shares	952,000	59,477	691,943
Reissuance of treasury stock for NES	(690,366)	(59,477)	(631,966)
Reissuance of treasury stock for the exercises of options			(500)
Shares repurchase		952,000
Balance, shares	261,634	952,000	59,477

Common Shares and Treasury Stock - Additional Information (Detail) - $ / shares	May 31, 2020	May 31, 2019	May 31, 2018
Common stock shares authorized	300,000,000	300,000,000	300,000,000
Common stock par value	$ 0.01	$ 0.01	$ 0.01

Share-Based Compensation - Additional Information (Detail)					3 Months Ended	12 Months Ended
	Jan. 29, 2020 Agreement $ / shares shares	Mar. 07, 2019 $ / shares	Jul. 13, 2018 shares	Jan. 31, 2016 shares	May 31, 2019 USD ($) $ / shares shares	May 31, 2020 USD ($) $ / shares shares	May 31, 2019 USD ($) $ / shares shares	May 31, 2018 USD ($) $ / shares shares	Jan. 28, 2020 shares	Mar. 31, 2019 Grantees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of options exercised \| $						$ 0	$ 0	$ 38,000
Unrecognized compensation expense \| $						$ 0
Cumulative number of shares repurchased from open market						11,285,510
Treasury shares for future issuance						17,000,000
Minimum percentage for exercise price of option					100.00%		100.00%
Outstanding share options granted Date							Mar. 05, 2007
Common shares issued to employees upon the vesting of their shares						5,136,817
Common shares transferred to be issued to employees and non employees upon the exercise of their vested share options and vesting of non-vesting equity shares						6,198,349
Weighted-average grant date fair value, Granted \| $ / shares						$ 108.38	$ 52.75	$ 82.75
Total fair value of shares vested \| $						$ 49,645,000	$ 39,869,000	$ 24,167,000
Share-based compensation expense \| $						62,057,000	71,336,000	57,443,000
Parent Company [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense \| $						$ 41,326,000	$ 63,315,000	$ 57,443,000
Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share transfer						17,000,000
Reissuance of treasury stock for non-vested equity shares, shares						3,679,623
Common shares transferred to be issued to employees and non employees upon the exercise of their vested share options and vesting of non-vesting equity shares						6,198,349
Total unrecognized compensation cost related to NES \| $						$ 20,404,000
Weighted-average period of recognition						11 months 1 day
Non-Vested Equity Shares [Member] \| Employees and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury shares for future issuance						690,366
2016 Share Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares authorized (including options) granted to employees and directors				10,000,000
Reissuance of treasury stock for non-vested equity shares, shares						2,257,092
2016 Share Incentive Plan [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share options, Granted				3,132,665		181,715	1,029,304	1,485,630
Number of share options, Forfeited						143,744	77,224	47,006
Kooleam pre ipo share option scheme [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted					47,836,985
Exercise period					6 years
Share-based compensation expense \| $						$ 8,391,000	$ 8,021,000
Option per share \| $ / shares		$ 1.19			$ 0.52
Percentage of maximum limit on shares Options granted			5.23%
Exercise price \| $ / shares					$ 1.13
Fair value of share options granted \| $					$ 21,613,000
Overall limit on the number of shares which may be issued			47,836,985
Number of Grantee \| Grantees										144
Kooleam post ipo share option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option per share \| $ / shares	$ 3.49
Overall limit on the number of shares which may be issued	40,000,000					38,199,000			40,000,000
Recognised total expenses \| $						$ 12,340
Kooleam post ipo share option [Member] \| Share-based Payment Arrangement, Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Grantee \| Agreement	552

Share-Based Compensation - Summary of NES Activities under 2006 and 2016 Share Incentive Plan (Detail) - $ / shares	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Weighted-average grant date fair value, Granted	$ 108.38	$ 52.75	$ 82.75
2006 and 2016 Share Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of NES, Beginning balance	1,908,900
Number of NES, Granted	181,715
Number of NES, Vested	(690,366)
Number of NES, Forfeited	(143,744)
Number of NES, Ending balance	1,256,505	1,908,900
Number of NES, vested and expect to vest at May 31, 2020	1,256,505
Weighted-average grant date fair value, Beginning balance	$ 66.89
Weighted-average grant date fair value, Granted	0
Weighted-average grant date fair value, Vested	0
Weighted-average grant date fair value, Forfeited	0
Weighted-average grant date fair value, Ending balance	70.73	$ 66.89
Weighted-average grant date intrinsic value, Beginning balance	66.89
Weighted-average grant date intrinsic value, Granted	0
Weighted-average grant date intrinsic value, Vested	0
Weighted-average grant date intrinsic value, Forfeited	0
Weighted-average grant date intrinsic value, Ending balance	$ 70.73	$ 66.89

Share-Based Compensation - Movements of share options under the Koolearn Pre IPO Share Option Scheme (Detail) - Kooleam pre ipo share option scheme [Member] - $ / shares	3 Months Ended	12 Months Ended
	May 31, 2019	May 31, 2020
Number of share options, Granted	47,836,985
Number of share options, Forfeited	(3,065,500)	(2,360,000)
Number of share options, Cancelled	(31,000)	(3,129,000)
Number of share options outstanding, Ending balance	44,740,485	39,251,485
Weighted average exercise prices, Options, Granted	$ 1.13
Weighted average exercise prices, Options, Forfeited	1.13	$ 1.13
Weighted average exercise prices, Options, Cancelled	1.13	1.13
Weighted average exercise prices, Options outstanding, Ending balance	$ 1.13	$ 1.13

Share-Based Compensation - The fair value estimate of share options (Detail) - Kooleam pre ipo share option scheme [Member] - $ / shares		3 Months Ended	12 Months Ended
	Mar. 07, 2019	May 31, 2019	May 31, 2020
Weighted average share price	$ 1.19	$ 0.52
Exercise price	$ 1.13
Expected volatility	46.80%
Expected life			6 years
Risk-free rate	2.49%
Expected dividend yield	0.00%

Share-Based Compensation - Summary Of Share Option Under the Post-IPO Share Option (Detail) - Kooleam post ipo share option [Member]	4 Months Ended
	May 31, 2020 $ / shares shares
Number of share, Options granted, Begining balance \| shares	40,000,000
Number of share options, Forfeited \| shares	(1,801,000)
Number of share, Option outstanding, Ending balance \| shares	38,199,000
Weighted average exercise prices, Options outstanding, Beginning balance \| $ / shares	$ 3.26
Weighted average exercise price per, Option forfeited \| $ / shares	3.26
Weighted average exercise prices, Options outstanding, Ending balance \| $ / shares	$ 3.26

Share-Based Compensation - Summary of Binomial Option-Pricing Model To Determine The Fair Value Of The Share Option As Of The Grant Date (Detail) - Kooleam post ipo share option [Member]	Jan. 29, 2020 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average share price	$ 3.49
Exercise price	$ 3.26
Expected volatility	52.00%
Expected life	10 years
Risk-free rate	1.44%
Expected dividend yield	0.00%

Income Taxes - Additional Information (Detail) ¥ in Millions, $ in Millions			5 Months Ended	7 Months Ended	12 Months Ended
	Jan. 01, 2020	Jul. 25, 2017 USD ($)	May 31, 2018 USD ($)	Dec. 31, 2017	May 31, 2020 USD ($)	May 31, 2020 HKD ($)	May 31, 2020 CNY (¥)	May 31, 2019 USD ($)	May 31, 2019 HKD ($)	May 31, 2018 USD ($)	May 31, 2016
Income Taxes [Line Items]
State income tax rate					21.00%	21.00%	21.00%
Effective income tax rate			21.00%	35.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%
Assessable profit					$ 354,859,000			$ 227,846,000		$ 297,237,000
Income tax rate					27.46%	27.46%	27.46%	26.96%	26.96%	16.64%
Cash paid for dividend		$ 71,153,000								$ 71,153,000
Valuation allowance			$ 5,506,000		$ 41,095,000			$ 9,088,000		5,506,000
Net operating loss								202,077,000
Withholding tax, dividends paid by PRC schools and subsidiaries to their foreign investors											10.00%
Aggregate undistributed earnings available for distribution			1,819,317,000		2,279,550,000			1,972,912,000		1,819,317,000
Unrecognized tax benefits			$ 0		0			0		0
Provision for income taxes					$ 134,362,000			85,714,000		59,408,000
UNITED KINGDOM \| Walkite [Member]
Income Taxes [Line Items]
Income tax rate					19.00%	19.00%	19.00%
AUSTRALIA
Income Taxes [Line Items]
Income tax rate					30.00%	30.00%	30.00%
CANADA \| Overseas [Member]
Income Taxes [Line Items]
Income tax rate					26.50%	26.50%	26.50%
Wholly owned subsidiaries [Member]
Income Taxes [Line Items]
Cash paid for dividend					$ 59,696,000			43,420,000		69,567,000
Withholding tax paid for the dividend					3,062,000			2,171,000		6,957,000
Minimum [Member]
Income Taxes [Line Items]
Underpayment of tax liability					$ 16,000,000		¥ 0.1
Beijing Hewstone, Shanghai Smart Words and Beijing Decision [Member]
Income Taxes [Line Items]
Withholding tax paid for the dividend								3,062,000
Beijing Hewstone, Shanghai Smart Words, Beijing Smart Wood and Beijing Pioneer [Member]
Income Taxes [Line Items]
Withholding tax paid for the dividend								$ 5,000		6,957,000
High and new tech enterprise (HNTE) [Member]
Income Taxes [Line Items]
Income tax rate	15.00%				15.00%	15.00%	15.00%
High and new tech enterprise (HNTE) [Member] \| Beijing Decision Beijing Hewstone And Xuncheng [Member]
Income Taxes [Line Items]
Income tax rate					15.00%	15.00%	15.00%
Newly established software enterprise (NESE) [Member]
Income Taxes [Line Items]
Preferential tax rate					12.50%	12.50%	12.50%
Tax holiday year					2 years	2 years	2 years
Income tax holiday, description					Enterprises that qualify as the newly established software enterprise (“NESE”) are exempt from the Enterprise Income Tax (“EIT”) for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years.	Enterprises that qualify as the newly established software enterprise (“NESE”) are exempt from the Enterprise Income Tax (“EIT”) for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years.	Enterprises that qualify as the newly established software enterprise (“NESE”) are exempt from the Enterprise Income Tax (“EIT”) for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years.
Peoples Republic Of China Entities [Member]
Income Taxes [Line Items]
Income tax rate					25.00%	25.00%	25.00%
Variable interest entities (VIEs) [Member]
Income Taxes [Line Items]
Income tax rate					25.00%	25.00%	25.00%
Hong Kong [Member]
Income Taxes [Line Items]
Assessable profit						$ 2			$ 2
Income tax rate					16.50%	16.50%	16.50%	8.25%	8.25%
Hong Kong [Member] \| Major Subsidiaries of the Company [Member]
Income Taxes [Line Items]
Provision for income taxes					$ 0			$ 0		$ 0
Earliest Tax Year [Member]
Income Taxes [Line Items]
Net operating loss expiration dates					May 31, 2021	May 31, 2021	May 31, 2021
Latest Tax Year [Member]
Income Taxes [Line Items]
Net operating loss expiration dates					May 31, 2025	May 31, 2025	May 31, 2025

Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Current:
PRC	$ 142,992	$ 103,031	$ 72,785
Deferred:
PRC	(8,630)	(17,317)	(13,377)
Total provision for income taxes	$ 134,362	$ 85,714	$ 59,408

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Components of Group's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	May 31, 2020	May 31, 2019	May 31, 2018
Deferred tax assets
Allowance doubtful accounts	$ 4,677	$ 3,523	$ 1,965
Accrued expenses	55,172	43,212	32,253
Net operating loss carry-forward	43,049	22,299	14,611
Tax impact from the long term investments disposed to related party	1,521	1,521
Total deferred tax assets	104,419	70,555	48,829
Less: valuation allowance	(41,095)	(9,088)	(5,506)
Total deferred tax assets, net	63,324	61,467	43,323
Deferred tax liabilities
Acquired assets	3,598	5,038	3,308
Tax impact from the unrealized gain on available-for-sale investments	8,308	13,743	8,825
Total deferred tax liabilities	$ 11,906	$ 18,781	$ 12,133

Income Taxes - Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates (Detail)	5 Months Ended	7 Months Ended	12 Months Ended
	May 31, 2018	Dec. 31, 2017	May 31, 2020	May 31, 2019	May 31, 2018
Income Tax Disclosure [Abstract]
Statutory tax rate	21.00%	35.00%	25.00%	25.00%	25.00%
Effect of not deductible expenses for tax purposes			5.93%	16.70%	4.35%
Tax effect of exempt entities			(5.50%)	(6.91%)	(8.10%)
Effect of tax holiday			(5.13%)	(9.73%)	(5.70%)
Changes in valuation allowance			6.53%	1.13%	0.43%
Effect of dividend withholding tax			0.63%	0.77%	0.66%
Effective tax rate			27.46%	26.96%	16.64%

Income Taxes - Schedule of Increase in Income Tax Expenses and Decrease in Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Income Tax Disclosure [Abstract]
Increase in income tax expenses	$ 50,809	$ 51,002	$ 48,444
Decrease in net income per share - basic	$ 0.32	$ 0.32	$ 0.31
Decrease in net income per share - diluted	$ 0.32	$ 0.32	$ 0.31

Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Numerator:
Net income attributable to New Oriental Education & Technology Group Inc.'s shareholders	$ 413,333	$ 238,065	$ 296,130
Net income available for future distribution	$ 413,333	$ 238,065	$ 296,130
Denominator
Weighted average common shares outstanding basic	158,429,576	158,293,890	158,168,794
Plus: incremental weighted average common shares from assumed vesting of NES using the treasury stock method	1,107,314	745,455	387,706
Weighted average common shares outstanding diluted	159,536,890	159,039,345	158,556,500
Net income per common share
- Basic	$ 2.61	$ 1.50	$ 1.87
- Diluted	$ 2.59	$ 1.50	$ 1.87

Net Income Per Share - Additional Information (Detail) - shares	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Earnings Per Share [Abstract]
Employee share options included from the dilutive share calculation	0	0	0

Related-Parties Transactions - Balances and Transaction with Related Parties (Detail) - USD ($)
$ in Thousands

12 Months Ended

May 31, 2020

May 31, 2019

May 31, 2018

Amounts due from related parties - current

$ 3,384

$ 42,644

$ 1,595

Amounts due to related parties - current

1,590

472

Amounts due from related parties - non current

22,709

1,204

2,226

Revenue

479

1,060

Cost

4,970

3,932

Non-Interest Bearing Loan [Member]

Amounts due from related parties - current

7,128

61,155

Metropolis [Member] | Executive Chairman [Member]

Amounts due from related parties - current

^[1]

1,951

15,581

787

Amounts due to related parties - current

^[1]

159

Amounts due from related parties - non current

^[1]

1,550

1,204

2,226

Rental expense

^[1]

9,615

7,888

7,899

Metropolis [Member] | Equity Method Investee [Member]

Amounts due from related parties - non current

^[2]

21,024

Others [Member]

Revenue

^[3]

Cost

^[3]

460

Education Industry Fund [Member] | Equity Method Investee [Member]

Amounts due from related parties - current

8,692

Amounts due to related parties - current

EEO [Member] | Equity Method Investee [Member]

Cost

3,239

2,408

Other Subsidiaries [Member]

Amounts due from related parties - current

^[4]

1,433

3,160

808

Amounts due to related parties - current

^[4]

1,431

472

$ 30

Amounts due from related parties - non current

^[4]

135

Fishpond [Member] | Equity Method Investee [Member]

Revenue

438

1,060

Beijing Dongfang Heli Investment and Developement Ltd ("Dongfang Heli") [Member] | Equity Method Investee [Member]

Cost

1,700

1,064

Beijing Dianshi Jingwei Technololy Co., Ltd ("Dianshi Jingwei") [Member] | Equity Method Investee [Member]

Amounts due from related parties - current

^[2]

15,211

Amounts due to related parties - current

^[2]

Beijing Dianshi Jingwei Technololy Co., Ltd ("Dianshi Jingwei") [Member] | Equity Method Investee [Member] | Non-Interest Bearing Loan [Member]

Amounts due from related parties - current

^[2]

$ 7,128

$ 61,155

[1]	Since April 2010, the Group began renting a large portion of a building owned by Metropolis for office space. In March 2012, Metropolis was acquired by a company wholly-owned by Mr. Yu, the Group’s executive chairman. As a result, Metropolis became a related party of the Group. As of May 31, 2020, the current and non-current amounts due from Metropolis were US$1,951 and US$ 1,550, respectively, which represented prepaid rent related to a short-term lease and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by the Group’s board of directors.
[2]	In April 2016, the Group sold 51% of the equity interest of its fully-owned subsidiary Dianshi Jingwei and Dianshi Jingwei became an equity method investee of the Group. As of May 31, 2020, amounts due from Dianshi Jingwei included five outstanding loans provided by the Group with annual interest rate of 10%. The loans were initially granted in 2018 but were extended several times and recorded as non-current assets as of May 31, 2020. During the year ended of May 31, 2020, no interests were received by the Group. The extended loans were personally guaranteed by Mr. Yu and Mr. Yunhai Jia (“Mr. Jia”), the chief executive officer of Dianshi Jingwei.
[3]	As of May 31, 2018, 2019 and 2020, the balance in “others” included the revenue and cost from long-term investees.
[4]	As of May 31, 2018, 2019 and 2020, the balance in “others” included the receivables from and payables to long-term investees.

Related-Parties Transactions - Balances and Transaction with Related Parties (Parenthetical) (Detail) - USD ($)
$ in Thousands

1 Months Ended

12 Months Ended

Apr. 30, 2016

May 31, 2020

May 31, 2019

May 31, 2018

Amounts due from related parties, current

$ 3,384

$ 42,644

$ 1,595

Amounts due from related parties, non-current

22,709

1,204

2,226

Metropolis [Member] | Executive Chairman [Member]

Amounts due from related parties, current

^[1]

1,951

15,581

787

Amounts due from related parties, non-current

^[1]

$ 1,550

$ 1,204

$ 2,226

Dianshi jingwei [Member]

Annual interest rate

10.00%

Percentage of equity interest sold

51.00%

Repayments of related party debt

$ 701

[1]

Since April 2010, the Group began renting a large portion of a building owned by Metropolis for office space. In March 2012, Metropolis was acquired by a company wholly-owned by Mr. Yu, the Group’s executive chairman. As a result, Metropolis became a related party of the Group. As of May 31, 2020, the current and non-current amounts due from Metropolis were US$1,951 and US$ 1,550, respectively, which represented prepaid rent related to a short-term lease and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by the Group’s board of directors.

Commitments and Contingencies - Future Minimum Capital Commitments under Non-Cancelable Construction and Investments (Detail) $ in Thousands	May 31, 2020 USD ($)
Capital Lease Obligations [Line Items]
Capital commitment	$ 4,148
Purchase of Property and Equipment [Member]
Capital Lease Obligations [Line Items]
Capital commitment	28,901
Leasehold Improvements [Member]
Capital Lease Obligations [Line Items]
Capital commitment	$ 33,049

Non-controlling Interests - Summary of Changes in Non-controlling Interest (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Beginning balance	$ 164,411	$ 16,482
Net income (loss) attributed to non-controlling interests	354,859	227,846	$ 297,237
Non-controlling interests arising from acquisitions		288
Capital contribution from non-controlling interests	64	20,498
Exercise of share options in Koolearn Holding	3,629
Change in non-controlling interests resulting from Koolean Holding's IPO, net of issuance cost		233,347
Reclassification of redeemable non-controlling interests		206,624
Ending balance	136,516	164,411	16,482
Noncontrolling Interest [Member]
Beginning balance	164,411	16,482	39,130
Capital contribution from non-controlling interests and new non-controlling interests recognized in acquisitions			2,015
Capital reduction of non-controlling interests			(28,652)
Dividend declared			(231)
Unrealized gain on available-for-sale investments		465	164
Net income (loss) attributed to non-controlling interests	(58,474)	(10,219)	1,107
Foreign currency translation adjustment	(417)	(1,376)	2,949
Non-controlling interests arising from acquisitions		288
Purchase of non-controlling interests	6,675	(1,696)
Disposal of a subsidiary		80
Capital contribution from non-controlling interests	(39)	5,317
Share-based compensation expenses from Koolearn Holding	20,731
Exercise of share options in Koolearn Holding	3,629
Change in non-controlling interests resulting from Koolean Holding's IPO, net of issuance cost		94,136
Reclassification of redeemable non-controlling interests		60,934
Ending balance	$ 136,516	$ 164,411	$ 16,482

Non-controlling Interests - Schedule of Effects of Changes in Ownership Interest on Equity (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Noncontrolling Interest [Line Items]
Net income attribute to New Oriental Education & Technology Group Inc.'s shareholders	$ 413,333	$ 238,065	$ 296,130
Share option gain	5,752
Decrease in the Group's additional paid-in capital resulting from disposal of a subsidiary	64	20,498
Increase in the Group's additional paid-in capital resulting from the change in non-controlling interests resulting from Koolearn Holding's IPO		233,347
Decrease in the Group's additional paid-in capital resulting from repurchase shares from non-controlling interests			(92,373)
Parent Company [Member]
Noncontrolling Interest [Line Items]
Net income attribute to New Oriental Education & Technology Group Inc.'s shareholders	413,333	238,065	296,130
Share option gain	5,752
Decrease in the Group's additional paid-in capital resulting from disposal of a subsidiary		(371)
Decrease in the Group's additional paid-in capital resulting from repurchase shares from non-controlling interests	(20,045)	(15,190)	(63,721)
Changes from net income attributable to New Oriental Education & Technology Group Inc.'s shareholders and transfers to non-controlling interests	399,143	522,586	118,625
Kooleam Holding [Member] \| Parent Company [Member]
Noncontrolling Interest [Line Items]
(Decrease) increase in the Group's additional paid-in capital resulting from reclassification and capital injection of non-controlling interests	$ 103	160,871	$ (113,784)
Increase in the Group's additional paid-in capital resulting from the change in non-controlling interests resulting from Koolearn Holding's IPO		$ 139,211

Segment Information - Additional Information (Detail) - Segment	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Segment Reporting Information [Line Items]
Number of operating segments	7	7	7
Sales Revenue, Segment [Member] \| Product Concentration Risk [Member]
Segment Reporting Information [Line Items]
Quantitative threshold	10.00%

Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Segment Reporting Information [Line Items]
Net revenues	$ 3,578,682	$ 3,096,491	$ 2,447,430
Operating cost and expenses:
Cost of revenues	(1,588,899)	(1,376,269)	(1,065,740)
Selling and marketing	(445,259)	(384,287)	(324,249)
General and administrative	(1,145,521)	(1,034,028)	(794,482)
Total operating cost and expenses	(3,179,679)	(2,794,584)	(2,184,471)
Gain on disposal of a subsidiary		3,627
Operating income (loss)	399,003	305,534	262,959
Total assets	6,556,885	4,646,559	3,977,712
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	3,578,682	3,096,491	2,447,430
Operating cost and expenses:
Cost of revenues	(1,588,899)	(1,376,269)	(1,065,740)
Selling and marketing	(421,472)	(357,398)	(293,400)
General and administrative	(908,474)	(824,508)	(613,328)
Total operating cost and expenses	(3,179,679)	(2,794,584)	(2,184,471)
Gain on disposal of a subsidiary		3,627
Operating income (loss)	399,003	305,534	262,959
Total assets	4,977,630	3,345,228	2,743,195
Corporate, Non-Segment [Member]
Operating cost and expenses:
Total operating cost and expenses	(260,834)	(236,409)	(212,003)
Total assets	1,579,255	1,301,331	1,234,517
K-12 AST Test Preparation and Other Courses [Member]
Operating cost and expenses:
Total assets	3,588,900	2,226,344	1,898,504
K-12 AST Test Preparation and Other Courses [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	3,040,741	2,605,829	2,022,978
Operating cost and expenses:
Cost of revenues	(1,304,239)	(1,128,355)	(869,012)
Selling and marketing	(218,739)	(212,170)	(193,851)
General and administrative	(729,125)	(675,315)	(504,985)
Total operating cost and expenses	(2,252,103)	(2,015,840)	(1,567,848)
Operating income (loss)	788,638	589,989	455,130
Total assets	3,588,900	2,226,344	1,898,504
Others [Member]
Operating cost and expenses:
Total assets	1,388,730	1,118,884	844,691
Others [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	537,941	490,662	424,452
Operating cost and expenses:
Cost of revenues	(284,660)	(247,914)	(196,728)
Selling and marketing	(202,733)	(145,228)	(99,549)
General and administrative	(179,349)	(149,193)	(108,343)
Total operating cost and expenses	(666,742)	(542,335)	(404,620)
Operating income (loss)	(128,801)	(51,673)	19,832
Total assets	$ 1,388,730	$ 1,118,884	$ 844,691

Mainland China Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Compensation and Retirement Disclosure [Abstract]
Contributions for employee benefits	$ 217,127	$ 178,057	$ 129,334

Statutory Reserves - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Statutory Accounting Practices [Line Items]
Percentage allocation of profits to general reserves	10.00%
Registered capital	50.00%
Accrued for general reserve	$ 1,506	$ 1,875	$ 1,830
Percentage allocation of profits to development fund	25.00%
Group transfers to the statutory reserves	$ 74,549	42,011	43,543
Development fund [Member]
Statutory Accounting Practices [Line Items]
Appropriations to reserves	$ 73,043	$ 40,136	$ 41,713

Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands	May 31, 2020	May 31, 2019	May 31, 2018
Restricted Net Assets [Line Items]
Restricted net assets	$ 513,721	$ 472,924	$ 542,534
Variable interest entities (VIEs) [Member] \| Paid in capital, additional paid-in capital and statutory reserves [Member]
Restricted Net Assets [Line Items]
Restricted net assets	464,917	437,121	448,103
Wholly owned subsidiaries [Member] \| Paid in capital, additional paid-in capital and statutory reserves [Member]
Restricted Net Assets [Line Items]
Restricted net assets	$ 48,804	$ 35,803	$ 94,431

Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ / shares in Units, $ / shares in Units, $ in Millions	Jul. 02, 2020 USD ($)	Sep. 08, 2020 USD ($) $ / shares shares	Sep. 08, 2020 HKD ($) $ / shares shares
Bonds [Member]
Subsequent Event [Line Items]
Bonds, Issued date	Jul. 02, 2020
Bonds issued \| $	$ 300,000
Bonds, due date	Jul. 02, 2025
Bonds, Interest rate	2.125%
Interest repayment terms	The Bond bears interest at a rate of 2.125% per year, payable semiannually in arrears on January 2 and July 2 of each year commencing January 2, 2021.
Proceeds from issuance of bonds, net of costs \| $	$ 297,083
Koolearn Holding [Member] \| Subscription Agreement [Member]
Subsequent Event [Line Items]
Shares issued price per share \| (per share)		$ 3.87	$ 30.00
Common Stock, Value, Subscriptions		$ 230,000,000	$ 1,783
Koolearn Holding [Member] \| Subscription Agreement [Member] \| Third Party Subscriber [Member]
Subsequent Event [Line Items]
Common Stock Shares Subscribed \| shares		7,752,000	7,752,000
Koolearn Holding [Member] \| Subscription Agreement [Member] \| New Oriental Education & Technology Group Co., Ltd [Member]
Subsequent Event [Line Items]
Common Stock Shares Subscribed \| shares		51,680,000	51,680,000