View Filing Data

Long-term investments due within one year

4,539

3,586

118,816

Total current assets

1,869,336

1,348,880

Restricted cash, non-current

3,811

2,481

Property and equipment, net

237,698

231,463

Land use rights, net

3,906

4,262

Amounts due from related parties, non-current

1,741

1,497

Long-term deposit

14,901

15,268

Long-term prepaid rent

235

424

Deferred tax assets, non-current

^[1]

24,341

5,040

Intangible assets

2,618

3,919

Goodwill

10,545

11,194

Long-term investments

178,863

325,991

Other non-current assets

6,839

1,118

Total assets

2,354,834

1,951,537

Current liabilities

Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to the Company of US$17,809 and US$21,318 as of May 31, 2015 and 2016, respectively)

21,395

17,888

Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to the Company of US$157,466 and US$192,332 as of May 31, 2015 and 2016, respectively)

217,044

178,803

Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to the Company of US$25,028 and US$30,899 as of May 31, 2015 and 2016, respectively)

32,806

25,376

Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entities without recourse to the Company of US$1,995 and US$29 as of May 31, 2015 and 2016, respectively)

1,995

Deferred revenue (including deferred revenue of the consolidated variable interest entities without recourse to the Company of US$470,903 and US$616,299 as of May 31, 2015 and 2016, respectively)

646,903

501,170

Total current liabilities

918,190

725,232

Deferred tax liabilities, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to the Company of US$1,600 and US$1,432 as of May 31, 2015 and 2016, respectively)

^[1]

1,982

2,461

Total liabilities

920,172

727,693

Commitments and Contingencies

Equity

Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2015 and 2016; 158,379,387 shares issued as of May 31, 2015 and 2016; 156,486,763 and 157,439,397 shares outstanding as of May 31, 2015 and 2016, respectively)

1,584

Treasury stock

(9)

(19)

Additional paid-in capital

223,422

141,653

Statutory reserves

184,697

153,610

Retained earnings

931,930

824,015

Accumulated other comprehensive income

62,948

99,505

Total New Oriental Education & Technology Group Inc. shareholders' equity

1,404,572

1,220,348

Noncontrolling interests

30,090

3,496

Total equity

1,434,662

1,223,844

Total liabilities and equity

$ 2,354,834

$ 1,951,537

[1]	The Group chose to early adopt ASU 2015-17 and classified all deferred tax assets and liability as noncurrent as of May 31,2016. The Group did not retrospectively apply the changes to prior years.

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 408	$ 801
Accounts payable, consolidated variable interest entity without recourse	21,318	17,809
Accrued expenses and other current liabilities, consolidated variable interest entity without recourse	192,332	157,466
Income taxes payable, consolidated variable interest entity without recourse	30,899	25,028
Amounts due to related parties, consolidated variable interest entity without recourse	29	1,995
Deferred revenue, consolidated variable interest entity without recourse	616,299	470,903
Deferred tax liabilities, non-current consolidated variable interest entity without recourse	$ 1,432	$ 1,600
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	158,379,387	158,379,387
Common stock, shares outstanding	157,439,397	156,486,763

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
NET REVENUES
Educational programs and services	$ 1,309,339	$ 1,102,974	$ 1,006,198
Books and others	169,009	143,792	132,689
Total net revenues	1,478,348	1,246,766	1,138,887
Operating costs and expenses
Cost of revenues	(614,364)	(526,320)	(451,669)
Selling and marketing	(197,897)	(188,483)	(169,062)
General and administrative	(471,010)	(378,434)	(324,210)
Total operating costs and expenses	(1,283,271)	(1,093,237)	(944,941)
Gain on disposal of subsidiaries	3,760		3,621
OPERATING INCOME	198,837	153,529	197,567
OTHER INCOME, NET
Interest income	66,861	66,605	44,880
Miscellaneous income, net	1,586	342	752
Income before income tax expense and loss from equity method investments	267,284	220,476	243,199
Provision for income taxes:
Current	(39,467)	(31,552)	(28,235)
Deferred	1,936	5,331	2,193
Provision for income taxes	(37,531)	(26,221)	(26,042)
Loss from equity method investments	(4,425)	(1,537)	(1,453)
Net income	225,328	192,718	215,704
Add: Net loss (gain) attributable to noncontrolling interests	(444)	295
Net income attributable to New Oriental Education & Technology Group Inc.	$ 224,884	$ 193,013	$ 215,704
Net income per share (Note 16)
- Basic	$ 1.43	$ 1.23	$ 1.38
- Diluted	$ 1.43	$ 1.23	$ 1.37
Weighted average shares used in calculating basic net income per share	156,782,439	156,438,606	156,033,992
Weighted average shares used in calculating diluted net income per share	157,391,686	157,302,174	157,903,464
Share-based compensation expense included in:
Share-based compensation expense	$ 16,810	$ 15,689	$ 20,079
General and Administrative Expense [Member]
Share-based compensation expense included in:
Share-based compensation expense	$ 16,810	$ 15,689	$ 20,079

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 225,328	$ 192,718	$ 215,704
Other comprehensive income, net of tax
Foreign currency translation adjustment	(72,464)	12,006	(17,894)
Unrealized gain on available-for-sale securities, net of tax effect of nil, nil and nil for years ended May 31, 2014, 2015 and 2016, respectively	36,635	21,940	586
Other comprehensive (loss) / income	(35,829)	33,946	(17,308)
Comprehensive income	189,499	226,664	198,396
Less: comprehensive (loss) / income attributable to non-controlling interests	1,172	(295)
Comprehensive income	$ 188,327	$ 226,959	$ 198,396

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Statement of Comprehensive Income [Abstract]
Unrealized gain on available-for-sale securities, tax effect

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

Total

Common Shares [Member]

Additional Paid-in Capital [Member]

Treasury Stock [Member]

Accumulated Other Comprehensive Income (Loss) [Member]

Statutory reserve [Member]

Retained Earnings [Member]

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

Noncontrolling Interest [Member]

Beginning Balance at May. 31, 2013

$ 857,252

$ 1,573

$ 164,336

$ (17)

$ 82,867

$ 107,723

$ 500,770

$ 857,252

Beginning Balance, shares at May. 31, 2013

156,695,987

Issuance of ADS shares for the exercises of employee share options

7,848

$ 11

7,837

7,848

Reissuance of treasury stock for the exercises of employee share options

13,524

13,514

13,524

Reissuance of treasury stock for the exercises of employee share options, shares

1,014,727

Reissuance of treasury stock for the vesting of non-vested equity shares

(8)

Reissuance of treasury stock for the vesting of non-vested equity shares, shares

810,052

Share-based compensation expense

20,079

Transfer to statutory reserves

22,145

(22,145)

^[1]

(54,476)

(14,891)

(39,585)

(54,476)

^[2]

$ (16,865)

(16,858)

(7)

(16,865)

(762,100)

^[2]

$ 215,704

215,704

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

(17,894)

586

Ending Balance at May. 31, 2014

1,025,758

$ 1,584

174,009

(6)

65,559

129,868

654,744

1,025,758

Ending Balance, shares at May. 31, 2014

157,758,666

Reissuance of treasury stock for the exercises of employee share options

11,362

11,353

11,362

Reissuance of treasury stock for the exercises of employee share options, shares

953,514

Reissuance of treasury stock for the vesting of non-vested equity shares

(6)

Reissuance of treasury stock for the vesting of non-vested equity shares, shares

575,432

Share-based compensation expense

15,689

Transfer to statutory reserves

23,742

(23,742)

^[3]

$ (59,420)

(59,392)

(28)

(59,420)

(2,800,849)

^[3]

$ 192,718

193,013

$ (295)

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

12,006

21,940

Capital injections of noncontrolling interests

3,791

Ending Balance at May. 31, 2015

$ 1,223,844

$ 1,584

141,653

(19)

99,505

153,610

824,015

1,220,348

3,496

Ending Balance, shares at May. 31, 2015

158,379,387

156,486,763

Reissuance of treasury stock for the exercises of employee share options

$ 2,431

2,428

2,431

Reissuance of treasury stock for the exercises of employee share options, shares

2,208,545

240,304

Reissuance of treasury stock for the vesting of non-vested equity shares

(7)

Reissuance of treasury stock for the vesting of non-vested equity shares, shares

2,097,814

712,330

Share-based compensation expense

$ 16,810

16,810

Transfer to statutory reserves

31,853

(31,853)

^[4]

(62,668)

(766)

23,214

^[5]

(766)

^[5]

(22,448)

^[5]

225,328

224,884

444

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

(72,464)

(72,193)

(271)

36,635

35,636

999

Capital injections of noncontrolling interests

68,498

39,579

28,919

Repurchase shares from noncontrolling interest

(3,752)

(255)

(3,497)

Ending Balance at May. 31, 2016

$ 1,434,662

$ 1,584

$ 223,422

$ (9)

$ 62,948

$ 184,697

$ 931,930

$ 1,404,572

$ 30,090

Ending Balance, shares at May. 31, 2016

158,379,387

157,439,397

[1]	On July 23, 2013, the Company declared a special cash dividend in the amount of US$0.35 per ADS. The aggregate amount of cash dividend paid was US$54,476, of which US$39,585 and US$14,891 were funded by retained earnings and additional paid in capital, respectively. The dividend was fully paid on October 7, 2013 to shareholders of record at the close of business on September 6, 2013.
[2]	On April 23, 2013, the Company's board of directors authorized the repurchase of up to US$50,000 of the Company's shares during the period from April 29, 2013, through July 31, 2013 to facilitate the future vesting of options or non-vested equity shares. 1,683,400 and 762,100 shares were repurchased in the years ended May 31, 2013 and 2014, respectively.
[3]	On July 22, 2014, the Company's board of directors authorized the repurchase of up to US$120,000 of the Company's shares during the period from July 28, 2014 through March 31, 2015. 2,800,849 shares were repurchased in the year ended May 31, 2015.
[4]	On July 19, 2015, the Company declared a special cash dividend in the amount of US$0.4 per ADS. The aggregate amount of cash dividend paid was US$62,668, which was funded by retained earnings. The dividend was fully paid on October 7, 2015 to shareholders of record at the close of business on September 4, 2015.
[5]	In January 2016, Beijing New Oriental Xuncheng Network Technology Co., Ltd. ("Xuncheng"), a subsidiary of the Group, transformed from a limited liability company to a joint stock limited company. The Group's accumulated retained earnings and statutory reserve related to Xuncheng were reclassified to additional paid-in-capital in the consolidation financials statements.

Consolidated Statements of Changes in Equity (Parenthetical) - USD ($)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013
Unrealized gain on available-for-sale securities, tax effect
Special cash dividend declared per share	$ 0.4		$ 0.35
Cash paid for dividend	$ 62,668,000		$ 54,476,000
Shares repurchase approved amount			$ 120,000,000	$ 50,000,000
Shares repurchases, shares		2,800,849	762,100	1,683,400
Additional Paid-in Capital [Member]
Cash paid for dividend			$ 14,891,000
Accumulated Other Comprehensive Income (Loss) [Member]
Unrealized gain on available-for-sale securities, tax effect
Retained Earnings [Member]
Cash paid for dividend	62,668,000		39,585,000
Total New Oriental Education & Technology Group Inc. Shareholders' Equity [Member]
Unrealized gain on available-for-sale securities, tax effect
Fiscal Year 2014 Dividend [Member]
Special cash dividend declared date			Jul. 23, 2013
Dividend payment date			Oct. 07, 2013
Shareholders date of record			Sep. 06, 2013
Fiscal Year 2016 Dividend [Member]
Special cash dividend declared date	Jul. 19, 2015
Dividend payment date	Oct. 07, 2015
Shareholders date of record	Sep. 04, 2015

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Cash flows from operating activities
Net income	$ 225,328	$ 192,718	$ 215,704
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property and equipment	47,281	46,663	43,578
Amortization of intangible assets	1,122	607	113
Amortization of land use rights	112	116	117
Loss on disposal of property and equipment	2,061	2,904	2,023
Gain on disposal of subsidiaries	(3,760)		(3,621)
Share-based compensation expense	16,810	15,689	20,079
Allowance for doubtful accounts	904	680	254
Loss from equity method investments	4,425	1,537	1,453
Deferred income taxes	(1,936)	(5,548)	(2,193)
Changes in operating assets and liabilities
Accounts receivables	(187)	(2,096)	443
Prepaid expenses and other current assets	(7,711)	(22,503)	(20,168)
Inventory	(5,649)	(1,750)	(481)
Long-term deposit	(532)	(2,598)	(207)
Long-term prepaid rent	169	668	157
Accounts payable	4,830	9,248	272
Accrued expenses and other current liabilities	47,945	11,120	44,775
Income taxes payable	7,878	7,607	1,286
Deferred revenue	179,583	117,086	60,722
Amounts due to related parties	(1,887)	1,994	(1,097)
Amounts due from related parties	1,108	3	(1,864)
Net cash provided by (used in) operating activities	517,894	374,145	361,345
Cash flows from investing activities
Restricted cash paid for establishing new schools and subsidiaries	(5,461)	(2,055)	(3,282)
Release of restricted cash for establishing new schools and subsidiaries	4,747	976	2,537
Investments in bank deposits maturing over three months	(64,540)	(32,703)	(72,497)
Settlement of bank deposits maturing over three months	42,603	62,924	22,187
Investments in short-term held-to-maturity investments	(1,112,172)	(943,476)	(1,849,087)
Settlement of short-term held-to-maturity investments	851,250	992,117	1,698,643
Purchase of property and equipment	(64,401)	(55,318)	(31,703)
Proceeds from disposal of property and equipment	1,310	1,738	946
Purchase of China Management Software Institute, net of cash acquired of US$68		(4,551)
Purchase of Qingdao Alice, net of cash acquired of US$2,306 (Note 3)		(10,623)
Payments for available-for-sale investments (Note 12)	(78,764)	(26,076)	(16,076)
Payments for equity method investments (Note 12)	(468)	(10,955)
Purchase of held-to-maturity investments (Note 12)		(145,415)	(96,045)
Settlement of held-to-maturity investments	115,178
Proceeds from disposal of cost method investment	540
Loan provided to related parties	(2,575)
Net cash used in investing activities	(309,737)	(173,417)	(344,377)
Cash flows from financing activities
Proceeds from issuances of common shares upon exercise of share option	2,176	11,332	21,849
Cash paid for shares repurchased		(59,420)	(21,487)
Cash paid for dividend	(62,668)		(54,476)
Capital contribution from noncontrolling interests	69,747	3,791
Repurchase shares from noncontrolling interests	(3,752)
Net cash (used in) provided by financing activities	5,503	(44,297)	(54,114)
Effects of exchange rate changes	(35,749)	3,274	(8,427)
Net change in cash and cash equivalents	177,911	159,705	(45,573)
Cash and cash equivalents at beginning of year	531,298	371,593	417,166
Cash and cash equivalents at end of year	709,209	531,298	371,593
Supplement disclosure of cash flow information
Income taxes paid	32,037	23,896	26,987
Non-cash investing and financing activities:
Payable for purchase of property and equipment	11,953	7,433	6,018
Payable for acquisition of China Management Software Institute			$ 4,594
Payable for long-term available-for-sale investment		$ 1,452
Dianshijingwei [Member]
Adjustments to reconcile net income to net cash provided by operating activities
Gain on disposal of subsidiaries	(3,760)
Cash flows from investing activities
Proceeds from disposal of subsidiaries	1,520
Boost Caring [Member]
Cash flows from investing activities
Proceeds from disposal of subsidiaries	$ 1,496

Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands	May 31, 2015 USD ($)
China Management Software Institute [Member]
Purchase of business, cash acquired	$ 68
Qingdao Alice [Member]
Purchase of business, cash acquired	$ 2,306

Organization and Principal Activities

12 Months Ended

May 31, 2016

Organization and Principal Activities

1.	ORGANIZATION AND PRINCIPAL ACTIVITIES

New Oriental Education & Technology Group Inc. (the “Company”) was incorporated in the Cayman Islands. The Company, its wholly owned subsidiaries and its variable interest entities, Beijing New Oriental Education & Technology (Group) Co., Ltd. (“New Oriental China”) and its schools and subsidiaries and Xuncheng and its subsidiary (collectively, the “VIEs”), are collectively referred to as the “Group”.

The Group provides educational services in the People’s Republic of China (the “PRC”) primarily under the “New Oriental” brand. The Group offers a wide range of educational programs, services and products, consisting primarily of English and other foreign language training, test preparation courses for admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education.

As of May 31, 2016, details of the Company’s subsidiaries, variable interest entity and its schools and subsidiaries were as follows:

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Subsidiaries of the Company:

Beijing Decision Education & Consulting Company Limited (“Beijing Decision”)

April 20, 2005

PRC

100%

Educational information

system and

other consulting services

Beijing Judgment Education & Consulting Company Limited (“Beijing Judgment”)

April 20, 2005

PRC

100%

Educational consulting and
investing activities

Beijing Hewstone Technology Company Limited (“Beijing Hewstone”)

April 20, 2005

PRC

100%

Educational software

development

and distribution and other

consulting services

Beijing Pioneer Technology Company Limited (“Beijing Pioneer”)

January 8, 2009

PRC

100%

Educational software

development

and distribution and other

consulting services

Shanghai Smart Words Software Technology Company Limited (“Shanghai Smart Words”)

December 8, 2010

PRC

100%

Educational consulting and

software development

Beijing Smart Wood Software Technology Company Limited (“Beijing Smart Wood”)

December 21, 2011

PRC

100%

Educational consulting and

software development

Beijing Joy Tend Technology Company Limited (“Beijing Joy Tend”)

January 31, 2013

PRC

100%

Educational consulting and

software development

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Subsidiaries of the Company:

Beijing Right Time Technology Company Limited (“Beijing Right Time”)

January 31, 2013

PRC

100%

Educational consulting

and software
development

Beijing Sincerity Technology Company Limited (“Beijing Sincerity”)

January 31, 2013

PRC

100%

Educational consulting

and software
development

Beijing Magnificence Technology Company Limited (“Beijing Magnificence”)

November 1, 2013

PRC

100%

Educational consulting

and software
development

Beijing Top Technology Company Limited (“Beijing Top”)

November 13, 2013

PRC

100%

Educational consulting

and software
development

Beijing Shenghe Technology Company Limited (“Beijing Shenghe”)

May 27, 2014

PRC

100%

Educational consulting

and software
development

Beijing New Oriental Walkite International Travel Co., Ltd.

May 22, 2012

PRC

100%

Consulting

Walkite International Academy Co., Ltd.

March 16, 2015

U.K.

100%

Consulting

Beijing New Road Information Consulting Services Co., Ltd. (“New Road”)

March 6, 2015

PRC

51%

Consulting

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

April 13, 2015

U.S.A.

100%

Consulting

Beijing Chongshengdongfang Network Technology Co., Ltd. (“Chongshengdongfang”)

December 24, 2014

PRC

100%

Educational consulting

and software
development

Beijing New Oriental Stars Education & Consulting Co., Ltd (“Stars”)

July 11, 2007

PRC

100%

Kindergarten

Beijing Chao Yang District Kindergarten of Stars (“ChaoYang Kindergarten”)

November 9, 2007

PRC

100%

Kindergarten

Nanjing Yuhuatai District New Oriental Kindergarten of Stars (“Nanjing Kindergarten”)

February 20, 2009

PRC

100%

Kindergarten

Qingdao Alice Education & Technology Company Limited (“Qingdao Alice “)

August 21, 2014

PRC

100%

Kindergarten

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Subsidiaries of the Company:

Qingdao Laoshan District Happy Alice Kindergarten (“Laoshan Alice”)

December 4, 2014

PRC

100%

Kindergarten

Qingdao Happy Alice Kindergarten (“Qingdao Happy Alice”)

November 29, 2005

PRC

100%

Kindergarten

Qingdao Chengyang District Happy Alice Kindergarten (“Chengyang Alice”)

October 30, 2014

PRC

100%

Kindergarten

Elite Concept Holdings Limited (“Elite Concept”)

December 3, 2007

Hong Kong

100%

Educational Consulting

Winner Park Limited (“Winner Park”)

December 9, 2008

Hong Kong

100%

Educational Consulting

Smart Shine International Limited (“Smart Shine”)

December 9, 2008

Hong Kong

100%

Educational Consulting

Abundant State Limited (“Abundant”)

May 30, 2014

BVI

100%

Educational Consulting

Koolearn Corporation (“Koolearn Cayman”)

June 10, 2013

Cayman

100%

On-line Education

Koolearn Holding Limited (“Koolearn HK”)

June 21, 2013

Hong Kong

100%

Educational Consulting

Variable interest entity of the Company:

Beijing New Oriental Education & Technology (Group) Co., Ltd (“New Oriental China”)

August 2, 2001

PRC

N/A

Education consulting,
software development
and distributions and
other services

Schools and subsidiaries of New Oriental China:

Beijing Haidian District Privately-Funded New Oriental School (“Beijing Haidian School”)

October 5, 1993

PRC

N/A

Language and post-
secondary education

Shanghai Yangpu District New Oriental Advanced Study School

June 1, 2000

PRC

N/A

Language education

Guangzhou Haizhu District Privately-Funded New Oriental Training School (“Guangzhou Haizhu School”) (a)

September 8, 2000

PRC

N/A

Language education

Guangzhou New Oriental Training School (“Guangzhou School”) (a)

August 20, 2013

PRC

N/A

Language education

Guangzhou Panyu District Privately-Funded New Oriental Training Centre (“Guangzhou Panyu School”) (a)

June 19, 2013

PRC

N/A

Language education

Wuhan New Oriental Training School

April 28, 2002

PRC

N/A

Language education

Tianjin New Oriental Training School

August 21, 2002

PRC

N/A

Language education

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Xi’an Yanta District New Oriental School

November 26, 2002

PRC

N/A

Language education

Nanjing Gulou New Oriental Advanced Study School

November 28, 2002

PRC

N/A

Language education

Shenzhen New Oriental Training School

October 15, 2003

PRC

N/A

Language education

Shenyang New Oriental Foreign Language Training School

June 18, 2003

PRC

N/A

Language education

Chongqing New Oriental Training School

August 15, 2003

PRC

N/A

Language education

Chengdu New Oriental School

August 18, 2003

PRC

N/A

Language education

Xiangyang New Oriental Training School

October 26, 2004

PRC

N/A

Language education

Changsha Furong District New Oriental Training School

May 25, 2005

PRC

N/A

Language education

Jinan New Oriental School

May 31, 2005

PRC

N/A

Language education

Taiyuan New Oriental Training School

April 20, 2005

PRC

N/A

Language education

Ha’er Bin Nangang District New Oriental Training School

May 20, 2005

PRC

N/A

Language education

Changchun New Oriental Training School

July 26, 2005

PRC

N/A

Language education

Hangzhou New Oriental Advanced Study School (“Hangzhou School”) (b)

July 21, 2005

PRC

N/A

Language education

Hangzhou New Oriental Education & Consulting Company Limited

May 8, 2012

PRC

N/A

Language education

Fuyang New Oriental Training School (“Fuyang School”) (b)

October 22, 2012

PRC

N/A

Language education

Zhengzhou New Oriental Training School

July 19, 2005

PRC

N/A

Language education

Zhuzhou New Oriental Training School

April 30, 2006

PRC

N/A

Language education

Shijiazhuang New Oriental School

April 3, 2006

PRC

N/A

Language education

Suzhou New Oriental School

April 26, 2006

PRC

N/A

Language education

Anshan New Oriental Training School

June 13, 2006

PRC

N/A

Language education

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Hefei New Oriental Foreign Language Training School

June 13, 2006

PRC

N/A

Language education

Yunnan New Oriental Training School

June 13, 2006

PRC

N/A

Language education

Wuxi New Oriental Advanced Study School

August 14, 2006

PRC

N/A

Language education

Fuzhou Gulou District New Oriental Training School

September 1, 2006

PRC

N/A

Language education

Nanchang Donghu District New Oriental Language School

March 16, 2007

PRC

N/A

Language education

Yichang Xiling District New Oriental School

January 1, 2006

PRC

N/A

Language education

Jingzhou New Oriental School

April 10, 2007

PRC

N/A

Language education

Dalian New Oriental Training School

June 12, 2007

PRC

N/A

Language education

Huangshi New Oriental Training School

March 17, 2008

PRC

N/A

Language education

Ningbo New Oriental School

April 16, 2008

PRC

N/A

Language education

Lanzhou Chengguan District New Oriental School

March 19, 2008

PRC

N/A

Language education

Xiamen Siming District New Oriental Education Training School

July 8, 2008

PRC

N/A

Language education

Qingdao New Oriental Language Training School

August 5, 2008

PRC

N/A

Language education

Nanning New Oriental Education Training School

September 18, 2008

PRC

N/A

Language education

Xuzhou New Oriental Advanced Study School

March 31, 2009

PRC

N/A

Language education

Xiangtan Yuhu District New Oriental School

July 15, 2010

PRC

N/A

Language education

Zhenjiang New Oriental School

July 19, 2010

PRC

N/A

Language education

Luoyang New Oriental School

November 25, 2010

PRC

N/A

Language education

Nantong Chongchuan District New Oriental School

December 28, 2010

PRC

N/A

Language education

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Jilin Chuanying District New Oriental School

March 17, 2011

PRC

N/A

Language education

Guiyang Yunyan District New Oriental School

March 21, 2011

PRC

N/A

Language education

Inner Mongolia Hohhot New Oriental School

April 2, 2011

PRC

N/A

Language education

Foshan New Oriental School

September 1, 2011

PRC

N/A

Language education

Tangshan Lubei District New Oriental School

May 25, 2011

PRC

N/A

Language education

Urumqi New Oriental School

May 22, 2011

PRC

N/A

Language education

Shiyan New Oriental School

May 23, 2011

PRC

N/A

Language education

Quanzhou Fengze District New Oriental Education Training School

June 26, 2015

PRC

N/A

Language education

Wenzhou New Oriental School

August 14, 2015

PRC

N/A

Language education

Weifang New Oriental Training School

October 10, 2015

PRC

N/A

Language education

Shanghai New Oriental Education & Training Company Limited

September 15, 2015

PRC

N/A

Language education

Zhuhai Xiangzhou District New Oriental Training Centre

December 11, 2015

PRC

N/A

Language education

Yangzhou Guangling District New Oriental Training Centre

March 24, 2016

PRC

N/A

Language education

Jinzhou New Oriental Training School (“Jinzhou School”)

April 19, 2016

PRC

N/A

Language education

Changchun Tongwen Gaokao Training School (“Tongwen Gaokao”)

October 27, 2008

PRC

N/A

College admission

examination

training

Changchun Tongwen Senior High School (“Tongwen High Schiool”)

October 27, 2008

PRC

N/A

Primary secondary
school education

China Management Software Institute (“CMSI”)

September 1, 2012

PRC

N/A

Higher education

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Beijing New Oriental Yangzhou Foreign Language School

June 6, 2002

PRC

N/A

Primary secondary

school education

Yangzhou Guangling District New Oriental Kindergarten of Stars (“Yangzhou Kindergarten”)

August 26, 2014

PRC

N/A

Kindergarten

Beijing Changping New Oriental Foreign Language School (“Changping school”)

July 19, 2010

PRC

N/A

Primary secondary

school education

Beijing New Oriental Dogwood Cultural Communications Co., Ltd.

May 16, 2003

PRC

N/A

Sales of educational

materials and products

Beijing New Oriental Dogwood, Bookstore, Audio & Video Co., Ltd.

March 2, 2004

PRC

N/A

Sales of educational

materials and products

Chengdu New Oriental Dogwood Bookstore Products Co., Ltd.

January 18, 2004

PRC

N/A

Sales of educational

materials and products

Chongqing New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

February 25, 2004

PRC

N/A

Sales of educational

materials and products

Shenyang new Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

September 18, 2003

PRC

N/A

Sales of educational

materials and products

Guangzhou Dogwood Bookstore & Audio-Visual Products Co., Ltd.

November 11, 2003

PRC

N/A

Sales of educational
materials and products

Wuhan New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

December 16, 2003

PRC

N/A

Sales of educational

materials and products

Xi’an New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

June 3, 2003

PRC

N/A

Sales of educational

materials and products

Shanghai Dogwood Bookstore & Audio-Visual Products Co., Ltd.

September 28, 2003

PRC

N/A

Sales of educational

materials and products

Changchun New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

October 8, 2005

PRC

N/A

Sales of educational

materials and products

Ha’er Bin New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

March 13, 2006

PRC

N/A

Sales of educational

materials and products

Taiyuan New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

July 12, 2006

PRC

N/A

Sales of educational

materials and products

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Hangzhou Dogwood Bookstore Products Co., Ltd

July 25, 2007

PRC

N/A

Sales of educational

materials and products

Nanchang Dogwood Bookstore & Audio-Visual Products Co., Ltd

September 14, 2007

PRC

N/A

Sales of educational
materials and products

Kunming Dogwood Bookstore & Audio-Visual Products Co., Ltd

November 21, 2007

PRC

N/A

Sales of educational
materials and products

Dalian New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

March 25, 2008

PRC

N/A

Sales of educational
materials and products

Lanzhou New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

October 28, 2008

PRC

N/A

Sales of educational
materials and products

Shijiazhuang New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

July 28, 2009

PRC

N/A

Sales of educational
materials and products

Suzhou New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

June 1, 2010

PRC

N/A

Sales of educational
materials and products

Xuzhou New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

September 29, 2010

PRC

N/A

Sales of educational
materials and products

Urumqi Dogwood Bookstore & Audio-Visual Products Co., Ltd

September 13, 2011

PRC

N/A

Sales of educational
materials and products

Xiamen New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

December 8, 2011

PRC

N/A

Sales of educational
materials and products

Hohhot Dogwood Bookstore & Audio-Visual Products Co., Ltd

February 7, 2012

PRC

N/A

Sales of educational
materials and products

Beijing New Oriental Vision Overseas Consultancy Co., Ltd.

February 19, 2004

PRC

N/A

Consulting

Shanghai Vision Overseas Service Co., Ltd.

March 24, 2011

PRC

N/A

Consulting

Shandong New Oriental Vision Overseas Consultancy Co., Ltd.

September 8, 2011

PRC

N/A

Consulting

Shanxi New Oriental Vision Overseas Consultancy Co., Ltd.

April 22, 2014

PRC

N/A

Consulting

Fujian New Oriental Vision Overseas Consultancy Co., Ltd.

May 13, 2014

PRC

N/A

Consulting

Guangdong Vision Overseas Consultancy Co., Ltd.

May 29, 2014

PRC

N/A

Consulting

Xinjiang New Oriental Vision Overseas Consultancy Co., Ltd.

July 9, 2014

PRC

N/A

Consulting

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Shaanxi New Oriental Vision Overseas Consultancy Co., Ltd.

January 23, 2015

PRC

N/A

Consulting

Tianjin New Oriental Vision Overseas Consultancy Co., Ltd.

May 13, 2015

PRC

N/A

Consulting

Inner Mongolia New Oriental Vision Overseas Consultancy Co., Ltd.

May 29, 2015

PRC

N/A

Consulting

Liaoning New Oriental Vision Overseas Consultancy Co., Ltd.

June 10, 2015

PRC

N/A

Consulting

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

June 10, 2015

U.K.

N/A

Consulting

Gansu New Oriental Vision Overseas Consultancy Co., Ltd.

May 15, 2015

PRC

N/A

Consulting

Qingdao New Oriental Vision Overseas Consultancy Co., Ltd.

August 20, 2015

PRC

N/A

Consulting

Hunan New Oriental Vision Overseas Consultancy Co., Ltd.

November 3, 2015

PRC

N/A

Consulting

Beijing New Oriental Vision Overseas Service Co., Ltd.

February 24, 2016

PRC

N/A

Consulting

Beijing New Oriental Dogwood Advertisement Co., Ltd.

January 20, 2004

PRC

N/A

Advertising

Beijing New Oriental Xuncheng Network Technology Co., Inc.Ltd (c)

March 11, 2005

PRC

N/A

On-line education

Beijing New Oriental Kuxuehuisi Network Technology Co., Ltd.

February 1, 2013

PRC

N/A

On-line education

Leci Internet Technology (Beijing) Company Limited

February 11, 2014

PRC

N/A

Educational consulting and
software development

Beijing Dongfangzhuoyong Investment Management Co., Ltd.

April 29, 2014

PRC

N/A

Investment management

Beijing New Oriental MEGAWAY Education & Consulting Co., Ltd.

March 4, 2015

PRC

N/A

Educational consulting

Beijing Aixuehuisi Education & Technology Co., Ltd.

January 6, 2015

PRC

N/A

Technology

Beijing Fishpond Software Technology Co., Ltd.

November 24, 2015

PRC

N/A

Technology

(a)

Guangzhou School and Guangzhou Panyu School were established in the year ended May 31, 2014. Although they are separate legal entities, from the perspective of the Group’s internal management, they together with Guangzhou Haizhu School are considered as one school since they are operated by the same local management in Guangzhou.

(b)	Although the Fuyang School is a separate legal entity, from the perspective of the Group’s internal management, Fuyang School and Hangzhou School are considered as one school since they are operated by the same local management in Hangzhou.

(c)	The contractual agreements between Xuncheng, New oriental China and Chongshengdongfang were terminated in September 2015.

The VIE arrangements

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

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

The Company and its wholly owned subsidiaries in China (the “WFOEs”) have entered into the following contractual arrangements with New Oriental China, New Oriental China’s schools and subsidiaries and New Oriental China’s shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receive the economic benefits of the VIE that could be significant to the VIE. Accordingly, the Company is considered the primary beneficiary of the VIE and has consolidated the VIE’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. In making the conclusion that the Company is the primary beneficiary of the VIE, the Company believes the Company’s rights under the terms of the exclusive option agreement provide it with a substantive kick out right. More specifically, the Company believes the terms of the exclusive option agreement are valid, binding and enforceable under PRC laws and regulations currently in effect. The Company also believes that the minimum amount of consideration permitted by the applicable PRC law to exercise the option does not represent a financial barrier or disincentive for the Company to currently exercise its rights under the exclusive option agreement. A simple majority vote of the Company’s board of directors is required to pass a resolution to exercise the Company’s rights under the exclusive option agreement, for which Mr. Michael Minhong Yu (“Mr. Yu”)’s consent is not required. The Company’s rights under the exclusive option agreement give the Company the power to control the shareholder of New Oriental China and thus the power to direct the activities that most significantly impact the schools’ economic performance given that New Oriental China has the power to direct the activities of the schools via its sponsorship interest. In addition, the Company’s rights under the power of attorney also reinforce the Company’s abilities to direct the activities that most significantly impact the VIE’s economic performance. The Company also believes that this ability to exercise control ensures that the VIE will continue to execute and renew service agreements and pay service fees to the Company. By charging service fees in whatever amounts the Company deems fit, and by ensuring that service agreements are executed and renewed indefinitely, the Company has the rights to receive substantially all of the economic benefits from the VIE.

Service agreements. 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 schools and subsidiaries pursuant to which each of the schools and subsidiaries may use the trademarks in China by paying license fees. This license is valid from May 14, 2006 to December 31, 2050, subject to the renewal every ten years upon the expiration of the trademark registration.

(ii)

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

(iii)

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

(iv)

Sale of educational software agreements. Eight WFOEs, namely Beijing Hewstone, Beijing Pioneer, Beijing Smart Wood, Shanghai Smart Words, Beijing Joy Tend, Beijing Magnificence, Beijing Top and Beijng Shenghe, entered into agreements whereby the WFOEs sells various self-developed educational software to the schools or subsidiaries of New Oriental China. Except for four agreements that are silent on renewal, these agreements provide unlimited two-year automatic renewal terms, and schools and subsidiaries of New Oriental China cannot terminate the agreements without the consent of the WFOEs in China.

Master exclusive service agreements. 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 schools and subsidiaries. Under the master exclusive service agreement, Beijing Pioneer has the exclusive right to provide or designate any entities affiliated with it to provide New Oriental China and its schools and subsidiaries 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 right 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 the 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 schools and subsidiaries 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 agreement. 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 Decision and Beijing Hewstone.

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

Exclusive option agreement. 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 right 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 shareholder 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 agreements.

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 right 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 Xuncheng and the Company’s subsidiary

During the fiscal year ended May 31, 2015, Chongshengdongfang, a PRC subsidiary of the Company entered into a series of contractual arrangements (the “Xuncheng VIE Agreements”) with New Oriental China and Xuncheng, a subsidiary of New Oriental China that engages in internet content services as the Internet Content Provider (“ICP”). The Xuncheng VIE Agreements enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of Xuncheng, and (2) receive the economic benefits of Xuncheng that could be significant to Xuncheng. Accordingly, the Company is considered the primary beneficiary of the Xuncheng. The terms of Xuncheng VIE Agreements are substantially the same as those signed between New Oriental China and the Company’s PRC subsidiaries.

In September 2015, the above contractual arrangements between Chongshengdongfang, New Oriental China and Xuncheng were terminated. The Group continues to consolidate Xuncheng through voting interest held by New Oriental China since September 2015.

Risks in relation to the VIE structure

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

•

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

•

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

•

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

•

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

•

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

•

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

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

Mr. Yu is the controlling shareholder of Century Friendship, which owns all of the equity interests in New Oriental China, which in turn owns all of the equity interests in Xuncheng, and Mr. Yu is also a beneficial owner of the Company. The interests of Mr. Yu as the beneficial owner of the VIEs may differ from the interests of the Company as a whole, since Mr. Yu is only one of the beneficial shareholders of the company, holding 15.1% of the total common shares outstanding as of May 31, 2016. The Company cannot assure that when conflicts of interest arise, Mr. Yu will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest Mr. Yu may encounter in his capacity as a beneficial owner and director of the VIEs, on the one hand, and as a beneficial owner and director of the Company, on the other hand. The Company believes Mr. Yu will not act contrary to any of the contractual arrangements and the exclusive option agreement provides the Company with a mechanism to remove Mr. Yu as a beneficial shareholder of the VIEs should he act to the detriment of the Company. The Company relies on Mr. Yu, as a director and executive officer of the Company, to fulfill his fiduciary duties and abide by laws of the PRC and Cayman Islands and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and Mr. Yu, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings.

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

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


	As of May 31,
	2015		2016
	US$		US$
Total current assets		753,306		1,262,811
Total non-current assets		511,051		381,262

Total assets		1,264,357		1,644,073

Total current liabilities		673,201		860,877
Total non-current liabilities		1,600		1,432

Total liabilities		674,801		862,309


	Years ended May 31,
	2014			2015			2016
	US$			US$			US$
Net revenues		1,121,205			1,221,101			1,443,851
Net income		266,497			265,485			313,828
Net cash provided by operating activities		371,458			357,893			450,848
Net cash used in investing activities		(240,427	)		(167,847	)		(286,235	)
Net cash provided by financing activities		—			—			69,747

The VIEs contributed an aggregate of 98.4%, 97.9% and 97.7% of the consolidated net revenues for the years ended May 31, 2014, 2015 and 2016, respectively. The Company’s operations not conducted through contractual arrangements with the VIEs primarily consist of the leasing of its commercial property. As of the fiscal years ended May 31, 2015 and 2016, the VIEs accounted for an aggregate of 64.8% and 69.8%, respectively, of the consolidated total assets, and 92.7% and 93.7%, respectively, of the consolidated total liabilities. The assets were not associated with the VIEs primarily consist of cash and cash equivalents, prepaid expenses, short-term investments and long-term investments.

There are no consolidated VIEs’ assets that are collateral for the VIEs’ obligations 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 shareholder 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 23 for disclosure of restricted net assets.

Significant Accounting Policies

12 Months Ended

May 31, 2016

Significant Accounting Policies

2.	SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

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

Basis of consolidation

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

Use of estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include purchase price allocation relating to the business acquired, the valuation allowance for deferred tax assets, economic lives and impairment of property and equipment, impairment of goodwill, fair value of long-term available-for-sale investments and share-based compensation. Actual results could differ from those estimates.

Business combinations

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

Where the consideration in an acquisition includes contingent consideration and the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and if recorded as a liability, it is subsequently carried at fair value with changes in fair value reflected in earnings.

Cash and cash equivalents

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

Term deposits

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

Short-term investments

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

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

Restricted cash

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

Allowance for doubtful accounts

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

Changes in the allowance for doubtful accounts were as follows:


	As of May 31,
	2015			2016
	US$			US$
Beginning balance		265			801
Charge during the year		676			235
Written-off		(140	)		(628	)

Ending balance		801			408

Inventory

Inventory is stated at the lower of cost or market value.

Land use rights

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

Property and equipment

Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization is calculated on a straight line basis over the following estimated economic lives:


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

Construction in progress

The Group constructs certain of its property and equipment. In addition to cost under the construction contracts, interest cost and external costs directly related to the construction of such facilities, including equipment installation and shipping costs, are capitalized. Depreciation is recorded at the time assets are ready for the intended use.

Impairment of long-lived assets

The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. The Group did not record impairment losses on long-lived assets during the years ended May 31, 2014, 2015 and 2016.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired.

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

Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit.

In order to test goodwill for impairment, the Group first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill.

The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill.

An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The Group recognized no impairment loss on goodwill for any of the periods presented.

Long-term investments

The Group’s long-term investments consist of cost method investments, equity method investments, available-for-sale investments and held-to-maturity investments.

(a)

Cost Method Investments

For investee companies over which the Group does not have significant influence and a controlling interest, the Group carries the investment at cost and recognize as income for any dividend received from distribution of the investee’s earnings.

The Group reviews its cost method investments for impairment whenever an event or circumstance indicates that an OTTI has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its cost method investments. An impairment charge is recorded if the cost of an investment exceeds its fair value and such excess is determined to be other-than temporary.

The Group estimated the fair value of these investee companies based on the discounted cash flow approach. Factors the Group considers in making such a determination include general market conditions, the duration and the extent to which the fair value of an investment is less than its cost, and the Group’s intent and ability to hold such investment. The Group recorded nil, US$2 and nil impairment losses on its cost method investments during the years ended May 31, 2014, 2015 and 2016, respectively.

(b)

Equity Method Investments

Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. For certain investments, where the Group holds more than 50% equity interest, the Group may only have significant influence but not have control over the investees. Equity method is also used to account for these investments.

An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimated the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long-term growth rate of a company’s business, the estimation of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The Company did not record impairment losses on its equity method investment during the years ended May 31, 2014, 2015 and 2016, respectively.

Available-for-sale securities Investments

For investments in investees’ stocks which are determined to be debt securities, the Group accounts for them as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income.

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

(d)

Long-term held-to-maturity investment

The Group’s long-term held-to-maturity investment represents a trust guaranteed by a bank with the maturity of more than one year, which is stated at its amortized cost.

Value added tax (“VAT”)

Pursuant to the PRC tax laws, in case of any product sales, generally the value added tax (“VAT”) rate is 3% of the gross sales for small scale VAT payer and 17% of the gross sales for general VAT payer. Most of the subsidiaries of the Company are deemed as general VAT payer for the sales of guidance materials and the intercompany sales of self-developed software. For general VAT payer, VAT on sales is calculated at 17% on revenue from product sales and paid after deducting input VAT on purchases. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Group’s consolidated financial statements.

On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program were phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in Group’s consolidated financial statements.

Since May 2016, in accordance with Cai Shui [2016] No. 68, the non-academic educational programs and services in short-term training schools are subject to a simple VAT collection method and apply for a 3% VAT rate. Therefore, the Group’s non-academic educational programs and services in short-term language training schools which were previously subject to business tax are now subject to VAT. VAT is reported as a deduction to revenue when incurred.

Revenue recognition

Revenue is recognized when persuasive evidence that an arrangement exists, delivery of the product or service has occurred, the selling price is both fixed and determinable and collection is reasonably assured. Revenue is reported net of business taxes, VAT and refunds. Business tax and VAT amounted to US$39,909, US$45,664 and US$52,993 for the years ended May 31, 2014, 2015 and 2016, respectively. The primary sources of the Group’s revenues are as follows:

(a)

Educational programs and services

The educational programs and services consist of language training and test preparation courses, primary and secondary school education and college admission examination retaking training services. Tuition is generally paid in advance and is initially recorded as deferred revenue. Tuition revenue for educational programs and services is recognized proportionately as the instructions are delivered, and is reported net of business taxes, VAT and related surcharges, and tuition refunds. Students are entitled to a short-term course trial period which commences on the date the course begins. Tuition refunds are provided to students if they decide within the trial period that they no longer want to take the course. Tuition refunds have been insignificant in the fiscal years ended May 31, 2014, 2015 and 2016, respectively. After the trial period, if a student withdraws from a class, usually no refunds will be provided and any collected but unearned portion of the fee is recognized at that time.

The Group also sells online-learning cards primarily to distributors at fixed prices after deducting a pre-determined fixed discount to the face value of the cards. Online-learning card sales represent prepaid service fees received from students for e-learning services. The prepaid service fee is recorded as deferred revenue upon receiving the upfront payment. Revenue is recognized upon actual usage of the cards by the students based on the number of minutes the students use the e-learning services, of which the actual usage is tracked by the Group on an individual basis. Upon the expiration of the online-learning card, which ranges from six months to one year from the date of sale of the card to the distributor, the Group will recognize the remaining unused minutes as revenue.

(b)

Books and others

The Group sells educational books or other educational materials either through its own book stores or websites or through third party distributors. Revenue from sales made through the Group’s book stores is recognized upon sales to customers. Revenue through distributors is recognized once the products are sold to the end customers.

Operating leases

Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the shorter of the lease term or estimated economic life.

Advertising costs

The Group expenses advertising costs as they incurred. Total advertising expenses were US$41,952, US$38,295 and US$39,753 for the years ended May 31, 2014, 2015 and 2016, respectively, and have been included as part of selling and marketing expenses.

Government subsidies

The Group recognizes government subsidies as miscellaneous income when they are received because they are not subject to any past or future conditions, there are no performance conditions or conditions of use, and they are not subject to future return. Government subsidies received and recognized as miscellaneous income totaled US$1,437, US$1,230 and US$494 for the years ended May 31, 2014, 2015 and 2016, respectively.

Foreign currency translation

The Company’s functional and reporting currency is the United States dollars (“U.S. dollars”). The financial records of the Company’s subsidiaries and the VIEs located in the PRC are maintained in its local currency, the RMB which is the functional currency of these entities. The financial records of the Company’s subsidiaries located in Hong Kong are maintained in U.S. dollars, which is the functional currency of these entities.

Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the reporting currency at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates, and revenues and expenses are translated using the average rate of exchange in effect during the reporting period. Translation adjustments are reported and shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and consolidated statements of comprehensive income.

Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the consolidated statements of operations.

Foreign currency risk

The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents, restricted cash, and term deposits denominated in RMB amounted to US$512,887 and US$747,762 as of May 31, 2015 and 2016, respectively.

Fair value

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

Level 1

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

Level 2

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

Level 3

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

The Group determines the transfers between levels are deemed to have occurred at the end of the periods presented.

Measured fair value on a recurring basis

The Group measured its financial assets and liabilities including cash equivalents and available-for sales securities at fair value on a recurring basis as of May 31, 2015 and 2016. Cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market.

As of May 31, 2015 and 2016, the available-for-sale securities recorded in long-term investments include redeemable preferred shares, common shares of a listed company, convertible bond and assets management plan and trust (Refer to Note 12). Those were measured and recorded at fair value on a recurring basis in periods subsequent to their initial recognition and are as follows:


	May 31, 2015
Description	Quoted Prices in Active Market for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
	US$		US$		US$		US$
Available for sales investments:

Common Shares		16,950		—		—		16,950
Redeemable preferred shares		—		50,157		—		50,157

Total		16,950		50,157		—		67,107


	May 31, 2016
Description	Quoted Prices in Active Market for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
	US$		US$		US$		US$
Available for sales investments:

Common Shares		15,945		—		—		15,945
Redeemable preferred shares		—		42,263		69,873		112,136
Convertible bond		—		12,310		—		12,310
Asset management plan and trust		—		23,413		—		23,413

Total		15,945		77,986		69,873		163,804

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

The Company measured the fair value of its convertible bond and asset management plan and trust based on the respective principal and expected returns as of May 31, 2016 and has classified those as level 2 measurement.

Redeemable preferred shares do not have a quoted market rate. For those, the Company measured their fair value based on recent transactions or based on the market approach when no recent transactions are available. Recent transactions include the purchase price agreed by an independent third party for an investment with similar terms or a recent transaction agreed by the Company and the investee and has been classified as level 2 measurement. When no recent transactions are available, the Company generally adopts a market approach which takes into consideration a number of factors including market multiple and discount rates from traded companies in the industry and requires the Company to make certain assumptions and estimates regarding industry factors. Specifically some of the significant unobservable inputs included the investee’s historical earning on sale, discount of lack of marketability, investee’s time to IPO as well as related volatility. The Company has classified those as level 3 measurement. The assumptions are inherently uncertain and subjective. Changes in any unobservable inputs may have a significant impact on the fair values.

The Group did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. During the year ended May 31, 2016, the Group transferred two redeemable preferred shares for a total of US$63,881 from level 2 to level 3 as the Company changed its fair value measurement for those two investees. Specifically, the Company changed its measurement method from recent transactions to a market approach described in the previous paragraph to determine the investment’s fair value as no recent transactions were available as of May 31, 2016.

The following table provides additional information about the reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs (level 3).


	Available-for-sale securities For the year ended May 31, 2016
	US$
Balance at June 1, 2015		—
Transfer from level 2 fair value measurements		63,881
Initial recognition		2,844
Unrealized gain		3,148

Balance at May 31, 2016		69,873

Measured fair value on a nonrecurring basis

Long-term investments other than investments classified as available-for-sale, goodwill and other intangible assets are measured at fair value on a nonrecurring basis when an impairment is recognized.

The Group measured long-term investments other than investments classified as available-for-sale, and goodwill at fair value on a nonrecurring basis when it is annually evaluated or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group measured acquired intangible assets using the income approach—discounted cash flow method when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group recognized nil, US$2 and nil impairment loss related to investments, goodwill and acquired intangible assets for the years ended May 31, 2014, 2015 and 2016, respectively. The fair value was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection of discounted future cash flow and the discount rate.

Fair value of financial instruments

The Group’s financial instruments consist primarily of cash and cash equivalents, term deposits, restricted cash, short-term held-to-maturity investments, accounts receivable, amount due from/to related parties, available-for-sale securities investments, long-term held-to-maturity investment and accounts payable. Available-for-sale investments are carried at fair value. The carrying amounts of cash and cash equivalents, term deposits, restricted cash, short-term held-to-maturity investments, accounts receivable, amount due from/to related parties, and accounts payable approximate their fair values due to the short-term maturities of these instruments. Long-term held-to-maturity investment is stated at its amortized cost.

Net income per share

Basic net income per share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised into common shares. Common share equivalents are excluded from the computation of the diluted net income per share in years when their effect would be anti-dilutive.

Income taxes

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

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

Comprehensive income

Comprehensive income includes net income, unrealized gain or loss on available-for-sale securities and foreign currency translation adjustments. Comprehensive income is reported in the consolidated statements of comprehensive income.

Share-based compensation

Share-based payments to employees and directors are measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense net of a forfeiture rate on a straight-line basis over the requisite service period, with a corresponding addition to paid-in capital. The Group uses the binomial option pricing model to measure the fair value of options granted and the quoted market price of the Company’s equity shares to measure the fair value of non-vested equity shares (“NES”) granted to employees at each measurement date. The binomial option pricing model is adopted because the Group believes that considering the possibility of exercise of an option over the life of the option, as affected by the reality of changing stock prices and non-constant risk free rates, would better reflect the measurement objective of relevant accounting literature.

The amount of compensation expense recognized at any date is at least equal to the portion of the fair value of the awards that are vested as of that date. The estimate of forfeitures is based on historical turnover rate and will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will impact the amount of share-based compensation expense to be recognized in future periods.

Concentration of credit risk

Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, term deposits, restricted cash, and accounts receivable. As of May 31, 2016, substantially all of the Group’s cash and cash equivalents, and term deposits were deposited with financial institutions with high-credit ratings and quality. Accounts receivable are typically unsecured and are derived from revenues earned from customers in the PRC. The Group performs periodic credit evaluations and provides an allowance for doubtful accounts to reduce the accounts receivable balance to its net realizable value. The Group did not have any customers constituting 10% or more of the consolidated net revenues and accounts receivable in fiscal years 2014, 2015 and 2016, respectively.

Newly adopted accounting pronouncements

In April 2014, the Financial Accounting Standards Board (“FASB”) issued a new pronouncement which amends to change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2014. Early adoption is permitted. The Group adopted this ASU on June 1, 2015 and the effects of the pronouncement have been reflected in the consolidated financial statements.

In November, 2015, the FASB issued a new pronouncement which changes how deferred taxes are classified on organizations’ balance sheets. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. For public companies, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. This ASU may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Group elected to early adopt this new guidance on a prospective basis and have applied the changes to all deferred tax liabilities and assets and to the consolidated balance sheet as of May 31, 2016. The Group did not retrospectively apply the changes to prior periods.

Recently issued accounting pronouncements not yet adopted

In May 2014, FASB issued a new pronouncement which affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU.

The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price to the performance obligations in the contract.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application will be permitted.

An entity should apply the amendments in this ASU using one of the following two methods:

Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients:

•

For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period.

•

For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods.

•

For all reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue.

Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application.

If an entity elects this transition method it also should provide the additional disclosures in reporting periods that include the date of initial application of:

•

The amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change.

•

An explanation of the reasons for significant changes.

The Group is in the process of evaluating the impact of this pronouncement to its consolidated financial statements.

In June 2014, the FASB issued a new pronouncement which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation—Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this ASU either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this ASU as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. In addition, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. The Group does not expect the adoption of this pronouncement will have a significant effect on its consolidated financial position or results of operations.

In February 2015, the FASB issued a new pronouncement which is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU focuses on the consolidation evaluation for reporting organizations (public and private companies and not-for-profit organizations) that are required to evaluate whether they should consolidate certain legal entities. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification (“Codification”) and improves current GAAP by:

•

Placing more emphasis on risk of loss when determining a controlling financial interest. A reporting organization may no longer have to consolidate a legal entity in certain circumstances based solely on its fee arrangement, when certain criteria are met.

•

Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE).

•

Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs.

The ASU will be effective for periods beginning after December 15, 2015, for public companies. Early adoption is permitted, including adoption in an interim period. The Group does not expect the adoption of this pronouncement will have a significant effect on its consolidated financial position or results of operations.

In September 2015, the FASB issued a new pronouncement ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments eliminate the requirement to retrospectively account for those adjustments. Under this ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The ASU also requires acquirers to present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The ASU must be applied prospectively to adjustments to provisional amounts that occur after the effective date. Early adoption is permitted for financial statements that have not been issued. The Company does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements.

In January 2016, the FASB issued a new pronouncement ASU 2016-01 which is intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities.

The new guidance makes targeted improvements to existing U.S. GAAP by:

•

Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income;

•

Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes;

•

Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements;

•

Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities;

•

Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and

•

Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.

The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. Adoption of the amendment must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except for amendments related to equity instruments that do not have readily determinable fair values which should be applied prospectively. The Group does not expect the adoption of this guidance will have a significant effect on the Group’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Group is in the process of evaluating the impact that this pronouncements on its consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-07, simplifying the Transition to the Equity Method of Accounting. The amendments eliminate the requirement that when an investment qualified for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previous held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increase in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Group is in the process of evaluating the impact that this pronouncements on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-08, which amends the principal-versus-agent implementation guidance and illustrations in the Board’s new revenue standard (ASC 606). The amendments in this update clarify the implementation guidance on principal versus agent considerations. When another party, along with the reporting entity, is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide that good or service to the customer (as a principal) or to arrange for the good or service to be provided to the customer by the other party (as an agent). The guidance is effective for interim and annual periods beginning after December 15, 2017. The Group is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). The new guidance simplifies certain aspects related to income taxes, statement of cash flows, and forfeitures when accounting for share-based payment transactions. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2016, with earlier adoption permitted. Certain of the amendments related to timing of the recognition of tax benefits and tax withholding requirements should be applied using a modified retrospective transition method. Amendments related to the presentation of the statement of cash flows should be applied retrospectively. All other provisions may be applied on a prospective or modified retrospective basis. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application will be permitted. The Group is in the process of evaluating the impacts of the adoption of this ASU on its consolidated financial statements.

In April 2016, the FASB issued a new pronouncement ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:

Identify the contract(s) with a customer.

Identify the performance obligations in the contract.

Determine the transaction price.

Allocate the transaction price to the performance obligations in the contract.

Recognize revenue when (or as) the entity satisfies a performance obligation.

The amendments in this update do not change the core principle of the guidance in Topic 606. Rather, the amendments clarify certain aspects related to identifying the performance obligation in the contract and the licensing implementation guidance while retaining the related principles. The Group is in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements.

In May, 2016, the FASB issued a new pronouncement ASU 2016-12 which provides clarifying guidance in certain narrow areas and add some practical expedients as discussed below. The amendments clarify the objective of the collectability criterion in Step 1. The objective of this assessment is to determine whether the contract is valid and represents a substantive transaction on the basis of whether a customer has the ability and intention to pay the promised consideration in exchange for the goods or services that will be transferred to the customer. The amendments also add a new criterion to paragraph 606-10-25-7 to clarify when revenue would be recognized for a contract that fails to meet the criteria in Step 1. That criterion allows an entity to recognize revenue in the amount of consideration received when the entity has transferred control of the goods or services, the entity has stopped transferring goods or services (if applicable) and has no obligation under the contract to transfer additional goods or services, and the consideration received from the customer is nonrefundable. The amendments permit an entity, as an accounting policy election, to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price. The amendments specify that the measurement date for noncash consideration is contract inception. The amendments also clarify that the variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration. The amendments provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. The amendments clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application. Accounting for elements of a contract that do not affect revenue under legacy GAAP are irrelevant to the assessment of whether a contract is complete. In addition, the amendments permit an entity to apply the modified retrospective transition method either to all contracts or only to contracts that are not completed contracts. The amendments clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. However, an entity is still required to disclose the effect of the changes on any prior periods retrospectively adjusted. The effective date and transition of these amendments is the same as the effective date and transition of ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The Group is in the process of evaluating the impact of adoption of this pronouncements on its consolidated financial statements.

In August 2016, the FASB issued new pronouncements ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments in this Update provide guidance on the following specific cash flow issues such as: (1) Contingent Consideration Payments Made after a Business Combination; (2) Distributions Received from Equity Method Investees. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Group does not expect the adoption of this pronouncement will have a significant effect on its consolidated financial position or results of operations.

Business Acquisition

12 Months Ended

May 31, 2016

Business Combinations [Abstract]

Business Acquisition

3.	BUSINESS ACQUISITION

Acquisition of China Management Software Institute

On September 1, 2012, the Group acquired a 100% equity interest in CMSI, which was mainly focused on providing software and computer education training service in China for a total consideration of US$18,000 within three years by installments and a present value of US$17,455. The Company has fully paid the consideration as of May 31, 2015. The Group intended to use its land and building to expand current business of another school. The software and computer education training service of CMSI would be terminated when current students graduated. The acquisition was recorded using the acquisition method of accounting and, accordingly, the acquired assets and liabilities were recorded at their fair market value at the date of acquisition. The purchase price was allocated as at the date of acquisition as follows:


	US$			Amortization period
Cash		68
Other current assets		14
Buildings		16,095			23.3-45.3 years
Property, plant and equipment		103			1-5 years
Land use right		1,008			38.5 years
Intangible assets
Student base		110			1.75 years
Goodwill		1,829
Other current liabilities		(45	)
Deferred tax liabilities		(1,727	)

Total		17,455

Acquisition of Qingdao Alice

In order to expand its business in kindergarten industry and benefit from the synergistic effect, the Group acquired 100% equity interest in Qingdao Alice on December 1, 2014, for a total consideration of US$12,929, which was fully paid as of May 31, 2015. The acquisition was recorded using the acquisition method of accounting, accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The purchase price allocation described below was based on a valuation analysis provided by an independent appraiser. The purchase price was allocated as at the date of acquisition as follows:


	US$			Amortization period
Cash		2,306
Other current assets		644
Property, plant and equipment		89			1-5 years
Intangible assets
Trademark		1,058			10.1 years
Student base		1,998			2.2 years
Favorable lease		763			8.7 years
Goodwill		7,540
Other current liabilities		(514	)
Deferred tax liabilities		(955	)

Total		12,929

Discontinued Operations and Disposal Groups [Abstract]

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

Disposal of Subsidiaries

12 Months Ended

May 31, 2016

Disposal of Subsidiaries

4.	DISPOSAL OF SUBSIDIARIES

Disposal of Boost Caring

In March 2014, the Group sold its 100% equity interest in Beijing Boost Caring Education &Consulting Co., Ltd (“Boost Caring”) to Beijing MaxEn International Education Consulting Co., Ltd (“MaxEn”) which is a 65% owned joint venture of the Group, for a cash consideration of US$1,560 which was collected in August 2015. As of the disposal date, Boost Caring had accumulated deficit resulting in the Group deriving a gain from the deconsolidation. The disposal gain recognized by the Group was US$3,254 and was recorded in the consolidated statements of operations for the year ended May 31, 2014.

Disposal of North Star

In May 2014, the Group sold 100% equity interest in Beijing New Oriental North Star Training School (“North Star”) to MaxEn, for a cash consideration of US$364. As of the disposal date, North Star had accumulated deficit resulting in the Group deriving a gain from the deconsolidation. The disposal gain recognized by the Group was US$367 and was recorded in the consolidated statements of operations for the year ended May 31, 2014. As of May 31, 2016, the Group has not received the consideration and recorded the balance in amount due from related parties.

The Group considered these transactions as related parties’ transaction and disclosed the transactions in Note 17. After the disposals, the Group retained indirect significant influence in Boost Caring and North Star through MaxEn.

Disposal of Dianshijingwei

In April 2016, the Group sold 51% equity interest in Beijing Dianshijingwei Technololy Co., Ltd (“Dianshijingwei”) to some of Dianshijingwei’s management for a cash consideration of US$2,325, of which US$1,520 was collected as of May 31, 2016. As of the disposal date, Dianshijingwei had accumulated deficit resulting in the Group deriving a gain from the deconsolidation. The disposal gain recognized by the Group was US$3,760 and was recorded in the consolidated statements of operations for the year ended May 31, 2016. Subsequent to this disposal, the Group accounted for its 49% investment in Dianshijingwei as an equity method investment because the Group retained the ability to exercise significant influence. The disposal of Dianshijingwei did not represent a strategic shift and did not have a major effect on the Group’s operation.

The disposal gains from these transactions were presented as continuing operation.

Investments, Debt and Equity Securities [Abstract]

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Short-Term Investments

12 Months Ended

May 31, 2016

Short-Term Investments

5.	SHORT-TERM INVESTMENTS

Short-term investments consist of various fixed-income financial products purchased from Chinese banks and trusts and are classified as held-to-maturity investments as the Group has the positive intent and ability to hold the investments to maturity. The maturities of these financial products range from one month to less than one year, with interest rates ranging from 2.6% to 7.0%. They are classified as short-term investments on the consolidated balance sheets as their contractual maturity dates are equal to or less than one year.

While these fixed-income financial products are not publicly traded, the Company estimated that their fair value approximate their amortized costs considering their short-term maturities and high credit quality. No OTTI loss was recognized for the years ended May 31, 2014, 2015 and 2016, respectively.

Short-term investments consisted of the following:


	As of May 31,
	2015		2016
	US$		US$
Held-to-maturity investments		599,935		819,229

Inventory

12 Months Ended

May 31, 2016

Inventory Disclosure [Abstract]

Inventory

6.	INVENTORY

Inventory consisted of the following:


	As of May 31,
	2015		2016
	US$		US$
Course materials in schools		7,383		5,787
Publications in bookstores		16,600		21,516

		23,983		27,303

Inventory was marked down to the lower of cost or market value, in the amount of US$513 and US$638 for the years ended May 31, 2015 and 2016, respectively.

Prepaid Expenses and Other Current Assets

12 Months Ended

May 31, 2016

Prepaid Expenses and Other Current Assets

7.	PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:


	As of May 31,
	2015		2016
	US$		US$
Prepaid rent		35,973		33,135
Advances to suppliers		19,134		23,143
Interest receivable		6,490		9,341
Rental deposit		3,370		7,122
Receivable from the settlement bank for the proceeds of exercise of options and withholding tax		7,636		5,548
Prepaid advertising fees		3,652		3,250
Staff advances (a)		4,589		2,829
Value added taxes recoverable		1,979		2,534
Deposit of advertising & decoration		1,255		1,961
Receivable of social insurance		1,127		1,374
Prepaid property taxes and other taxes		830		616
Others (b)		11,798		8,824

		97,833		99,677

(a)	Staff advances were provided to staff for traveling and related use which are expensed as incurred and staff allowance for on-site enrollment activities.

(b)	Others primarily included maintenance fees, other receivables and other miscellaneous prepayments.

Intangible Assets

12 Months Ended

May 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

8.	INTANGIBLE ASSETS

Intangible assets consisted of the following:


	As of May 31,
	2015			2016
	US$			US$
Costs:
Intangible assets with indefinite lives:
Trademark		264			248
Intangible assets with finite lives:
Trademark		1,081			1,293
Courseware		50			47
Student base		2,093			1,978
Favorable lease		1,049			713
License		415			415

		4,952			4,694

Accumulated amortization:
Trademark		(256	)		(383	)
Courseware		(50	)		(47	)
Student base		(569	)		(1,404	)
Favorable lease		(60	)		(123	)
License		(98	)		(119	)

		(1,033	)		(2,076	)

Net carrying amount:
Intangible assets with indefinite lives:
Trademark		264			248
Intangible assets with definite lives:
Trademark		825			910
Courseware		—			—
Student base		1,524			574
Favorable lease		989			590
License		317			296

		3,919			2,618

Amortization expenses for the intangible assets for the years ended May 31, 2014, 2015 and 2016, were US$113, US$607 and US$1,122, respectively. As of May 31, 2016, the Group expects to record amortization expenses related to intangible assets US$806, US$231, US$209, US$201 and US$201 for the years ended May 31, 2017, 2018, 2019, 2020, 2021, respectively, and US$722 thereafter.

Goodwill

12 Months Ended

May 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

9.	GOODWILL


	As of May 31,
	2015			2016
	US$			US$
Costs:
Beginning balance		3,692			11,194
Acquisition of Qingdao Alice		7,540			—
Exchange differences		(38	)		(649	)

Ending balance		11,194			10,545

Accumulated goodwill impairment loss:
Beginning balance		—			—

Ending balance		—			—

Goodwill, net		11,194			10,545

Property and Equipment

12 Months Ended

May 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

10.

PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:


	As of May 31,
	2015			2016
	US$			US$
Buildings		145,159			146,411
Transportation equipment		8,084			8,553
Furniture and education equipment		72,820			76,492
Computer equipment and software		36,502			40,707
Leasehold improvements		152,929			169,345

		415,494			441,508
Less: accumulated depreciation		(186,612	)		(209,937	)
Construction in-process		2,581			6,127

		231,463			237,698

Depreciation expense for the years ended May 31, 2014, 2015 and 2016 was US$43,578, US$46,663, and US$47,281 respectively.

Land Use Rights

12 Months Ended

May 31, 2016

Accrued Expenses and Other Current Liabilities

Land Use Rights

11.

LAND USE RIGHTS

Land use rights consisted of the following:


	As of May 31,
	2015			2016
	US$			US$
Land use rights		5,497			5,178
Less: accumulated amortization		(1,089	)		(1,201	)
Exchange differences		(146	)		(71	)

Land use rights, net		4,262			3,906

Amortization expenses for land use rights for the years ended May 31, 2014, 2015 and 2016 were US$117, US$116 and US$112, respectively. The Group expects to recognize US$109 in amortization expense for each of the next five years and US$3,361 thereafter.

LONG TERM INVESTMENTS

12 Months Ended

May 31, 2016

Investments Schedule [Abstract]

LONG TERM INVESTMENTS

12.

LONG-TERM INVESTMENTS

Long-term investments consisted of the following:


	As of May 31,
	2015		2016
	US$		US$
Cost method investments:
Dajie.com Ltd (“Dajie.com”) (a)		2,000		1,460
Equity method investments:
Beijing Dongfangheli Investment and Development Ltd. (“Dongfangheli”) (b)		3,967		3,451
Beijing Zhishang Education & Technology Co., Ltd. (“Zhishang Education”) (c)		2,313		1,164
Juesheng Education Group Ltd. (“Juesheng.com”) (d)		—		3,249
Suzhou Qingrui Education & Technology Co., Ltd. (“Kou100”) (e)		—		3,261
Other Joint Ventures		3,124		2,474
Available-for-sale securities investments:
Shanghai Golden Education & Training Co. Ltd. (“Golden Finance”) (f)		3,398		34,242
Alo7.com Limited (“Alo7.com”) (g)		27,935		29,639
AVIC Trust Tianqi No.556 (“Trust 556”) (h)		—		16,037
Tarena International, Inc. (“Tarena”) (i)		16,950		15,945
Beijing ShangJiaChongYe Education & Technology Co. Ltd.(“Shangjiachongye”) (j)		—		12,310
Juesheng.com (d)		7,440		—
Beijing ROBOROBO Technology Co. Ltd. (“ROBOROBO”) (k)		4,356		9,999
Lele Global Limited (“Lele”) (l)		—		8,500
Special assets management plan - GuotaiYuanxin & New Oriental (“Assets management plan”) (m)		—		7,376
Beijing Yule World Network Technology Co. Ltd. (“STEMedu.cn”) (n)		—		5,992
Beijing TangFengHanYu Education & Technology Co. Ltd. (“Tangfeng”) (o)		—		5,980
Other investments		7,028		17,784
Held-to-maturity investments:(p)		247,480		—

		325,991		178,863

(a)

In September 2011, the Group signed a share subscription agreement to invest US$2,000 for 5% equity ownership interest in Dajie.com. The fair value of Dajie.com’s equity ownership interest was not readily determinable and the Group did not have the ability to exercise significant influence over the operating and financial policies of Dajie.com. Accordingly, the investment in Dajie.com was accounted for as a cost-method investment. In March 2016, the Company disposed part of equity ownership interest for US$540 and reinvested into Dajie.com’s VIE. The new investment was classified as available-for-sale security as the Company determined that the shares were debt security due to the redemption option available to the investee and accordingly measured the investment at fair value.

(b)

In August 2014, the Group invested US$4,034 to acquire 50% equity interest in Dongfangheli, a company concentrating on investment in educational research and development programs and software, consulting services. The Group used the equity method to account for the investment, because the Group has the ability to exercise significant influence but does not have control over the investee.

(c)

In July 2014, the Group invested US$2,662 to acquire 55% equity interest in Zhishang Education, an online professional educational training platform. The Group has concluded that it does not have control over Zhishang Education because other investors have significant participating rights, but determined that it has the ability to exercise significant influence. Therefore the Group used the equity method to account for the investment.

(d)

In August 2014 and May 2015, the Group invested US$3,006 and US$501 respectively in Juesheng.com, a company engaging in providing international educational products search engine service, for 11.88% equity interests. These investments were classified as available-for-sale securities as the Company determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gain of US$3,933 was reported in other comprehensive income for the year ended May 31, 2015. In March 2016, Juesheng.com successfully listed on the National Equities Exchange and Quotations (“NEEQ”). Upon the listing, the Group’s preference rights, including its redemption and liquidation preference were terminated and the shares became in-substance common shares. As the share conversion is not considered an earnings realization event, all unrealized gains deferred in accumulated other comprehensive income were reversed to the carrying amount of the common shares such that the initial carrying amount of such shares is equal to the original cost basis of the original investment. The Group further accounted for its investment in common share using the equity method as the Group determined that it can exercise significant influence over Juesheng.com.

(e)

In December 2014, the Group invested US$3,472 in Kouyu100, a company applying cutting edge psychoacoustic technology to spoken language training and correcting the pronunciation of a student like a real tutor, for 7% equity interest. The investment was classified as available-for-sale security as the Company determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized gain of nil was reported in other comprehensive income for the year ended May 31, 2015. In December 2015, Kouyu100 successfully listed on the NEEQ. Upon the listing, the Group’s preference rights, including redemption and liquidation preference were terminated and the shares became in-substance common shares. As the share conversion is not considered an earnings realization event, all unrealized gains deferred in accumulated other comprehensive income were reversed to the carrying amount of the common shares such that the initial carrying amount of such shares is equal to the original cost basis of the original investment. The Group further accounted for its investment in common share using the equity method as the Group determined that it can exercise significant influence over Kouyu100.

(f)

In April and November 2015, the Group invested US$3,398 and US$11,437 respectively in Golden Finance, a company focusing on training programs associated with finance and business management, for 19.5% equity interest. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gains of nil and US$19,407 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively.

(g)

On March 5, 2012, the Group acquired a convertible promissory from Alo7.com for US$1,000, which entitled the Group to automatically convert the note into equity security. On July 1, 2012, the Group converted the US$1,000 promissory note into convertible redeemable preferred shares and warrants issued by Alo7.com, for 3.4% equity ownership interest in Alo7.com on an as-converted basis.

In March, June and September 2014, the Group further invested US$2,576, US$300 and US$10,000 into Alo7.com for convertible and redeemable preferred shares. These investments were classified as available-for-sale securities as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. As of May 31, 2016, the Company had 17.16% equity interests in Alo7.com on an as-converted basis. Unrealized holding gains of US$631, US$13,428 and US$1,704 were reported in other comprehensive income for the years ended May 31, 2014, 2015 and 2016, respectively.

(h)

In October 2015, the Group invested US$15,654 in a two-year trust named Trust 556 with an expected annualized interest rate of 8.5%. The principal and the interest are not guaranteed during the Group’s holding period and will be paid upon maturity. The investment was classified as available-for-sale long-term investment as the Group determined that the shares were debt securities and unrealized holding gains of US$383 was reported in other comprehensive income for the year ended May 31, 2016.

(i)

In March 2014, the Group invested US$13,500 in Tarena, which is a service provider of IT professional education in China, for 2.96% ownership. This investment was classified as available-for-sale securities as Tarena is a NASDAQ listed company and the Group measured the investment subsequently at fair value. Unrealized holding loss of US$45, gain of US$3,495 and loss of US$1,005 were reported in other comprehensive income for the years ended May 31, 2014, 2015 and 2016, respectively.

(j)

In January 2016, the Group invested US$12,310 to acquire convertible bond issued by Shangjiachongye, which focuses on online education specific to vocational qualification training. The investment was classified as available-for-sale security and measured at fair value. As there was no operation change or significant transaction occurred since the transaction date, the initial purchase price was considered the fair value of this investment as of May 31, 2016.

(k)

In April 2015, the Group acquired 18% equity interest in ROBOROBO for a cash consideration of US$4,356, a company applying various robots build training courses for kids with different ages. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gains of nil and US$5,643 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively.

(l)

In September 2015, the Group invested US$8,500 to acquire 48,796,296 shares of Series B-1 convertible redeemable preferred shares for an 8.5% equity interests of Lele. Lele provides online learning and tutoring services for students from kindergarten through 12th grade. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. No unrealized holding gain or loss was reported in other comprehensive income for the year ended May 31, 2016 as the Group determined that there was no operation changes or significant transactions at the investee between the investment date and May 31, 2016.

(m)

In August 2015, the Group invested US$7,315 in an Assets management plan with a maturity of five years. The investment is managed together with another similar investment held by Mr. Yu and some other employees in the Group. The investment was classified as available-for-sale security as the Group determined that the investment was a debt security and measured the investment subsequently at fair value. Unrealized holding gains of US$61 was reported in other comprehensive income for the year ended May 31, 2016.

(n)

In July 2015, the Group invested US$2,844 to acquire 36% equity interest in STEMedu.cn, a company engaging in the business of providing service of education training. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gain of US$3,148 was reported in other comprehensive income for the year ended May 31, 2016.

(o)

In November 2015, the Group entered into an investment agreement with Tangfeng which engages in the business of Chinese training to acquire 6% equity interest with a total cash consideration of US$1,831. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gain of US$4,149 was reported in other comprehensive income for the year ended May 31, 2016.

(p)

The Group’s long-term held-to-maturity investments consist of trusts guaranteed by banks with the maturity more than one year, which are stated at their amortized cost. The trusts were invested in April, June and September 2014 with the amounts of US$96,805, US$80,671 and US$64,537, respectively, and interest income of US$1,404 and US$20,882 and US$20,771 was recognized in the consolidated statements of operations for the years ended May 31, 2014, 2015 and 2016, respectively. As of May 31, 2016, US$118,816 of the held-to-maturity investments were reclassified to long-term investments due within one year.

Accrued Expenses and Other Current Liabilities

12 Months Ended

May 31, 2016

Payables and Accruals [Abstract]

13.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following:


	As of May 31,
	2015		2016
	US$		US$
Accrued payroll		103,270		131,151
Payable for purchase of property and equipment		7,433		11,953
Amounts reimbursable to employees (a)		5,418		8,294
Individual taxes withholding		8,148		8,186
Refundable fees received from students (b)		10,023		5,755
Business taxes payable		9,701		5,259
Value added taxes payable		1,147		6,506
Accrued advertising fees		8,210		6,443
Rent payable		3,883		6,285
Welfare payable		6,213		6,004
Royalty fees payable (c)		2,565		3,637
Refundable deposit (d)		1,956		3,161
Accrued professional service fees		1,683		2,352
Other taxes payable		1,887		1,240
Investment payable (e)		1,452		—
Others (f)		5,814		10,818

Total		178,803		217,044

(a)	Amounts reimbursable to employees included traveling and the related expenses incurred by employees on behalf of the Group.

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

(c)	Royalty fees payable related to payments to content providers for on-line learning programs and those to counterparties for copyright and resource sharing.

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

(e)	The balance as of May 31, 2015 represents a payable for an available-for-sale investment in ROBOROBO, which was fully paid in July 2015.

(f)	Others primarily included transportation expenses, utility fees, property management fees, and other miscellaneous expenses payable.

Share-Based Compensation

12 Months Ended

May 31, 2016

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

Share-Based Compensation

14.

SHARE-BASED COMPENSATION

On January 20, 2006, the Company adopted 2006 Share Incentive Plan (“2006 Share Incentive Plan”), under which the Company may grant share options to purchase up to 8,000,000 common shares of the Group, to its employees, directors and consultants. The number of common shares available for grant under the 2006 Share Incentive Plan may be increased annually by (i) an additional 5,000,000 shares on January 1, 2007, (ii) an additional 5,000,000 shares on January 1, 2008, and (iii) an annual increase in common shares to be added on the first business day of each calendar year beginning in 2009 equal to the lesser of (x) 3,000,000 shares, (y) two percent (2%) of total common shares outstanding as of such date, or (z) a lesser number of shares as determined by the Group’s management. In the event the aggregate number of shares that may be issued in any given year under all share compensation plans has reached the maximum number of shares allowed in that year, the Company may grant additional awards up to 2,000,000 shares, or extra shares. The number of shares granted in excess of the annual maximum in any given year will result in the reduction of the maximum shares available for grant in the next year.

As of May 31, 2016, the Company has transferred 16,000,000 common shares to its depositary bank to be issued to employees and non-employees upon the exercise of their vested share options or upon the vesting of NES. During the years ended May 31, 2013, 2014 and 2015, the Company has repurchased 1,683,400, 762,100 and 2,800,849 common shares, respectively, from the open market and the shares are reserved for the employees and non-employees to exercise of their vested share options and NES in future. The share repurchase program has been completed in April 2015. As of May 31, 2016, 939,990 treasury shares remain for future issuance upon the exercise of share options and vesting of NES.

The Company recorded total share-based compensation of US$20,079, US$15,689 and US$16,810 during the years ended May 31, 2014, 2015 and 2016, respectively.

Share options

The following table summarizes information regarding the share options granted:


Share options	Shares granted		Grant-date fair value		Exercise price
			US$		US$
Grant date:
February 28, 2006		7,099,500		1.00		2.02
July 21, 2006		1,620,000		1.15		2.38
September 7, 2006		100,000		2.38		3.75
March 5, 2007		3,946,500		4.09		8.75
January 17, 2012		3,060,000		10.33		12.19

Total		15,826,000

The exercise price of share options is at least 100% of the fair value of the common shares on the date of the grant. The term of a share option is up to ten years from the date of grant. During the year ended May 31, 2016, the Group extended the terms of share options granted on February 28, 2006 for another three years. The extension did not have a material impact on the Group’s consolidated financial statements. The share options generally vest over three years at six-month vesting increments per year.

As of May 31, 2016, 11,285,510 common shares out of the 16,000,000 common shares had been issued to employees and non-employees upon the exercise of their share options, and 2,208,545 shares out of the 5,246,349 treasury shares had been reissued to employees and non-employees upon exercise of their share options.

In January 2016, the 2006 Share Incentive Plan expired. However, the expiration of the plan did not affect the exercise right of options granted prior to such expiration.

The Company adopted the 2016 Share Incentive Plan (“2016 Share Incentive Plan”) in January 2016 to continue to provide incentives to employees, directors and consultants after the termination of 2006 Share Incentive Plan. The maximum aggregate number of shares which may be issued pursuant to all awards (including options) granted under the 2016 Share Incentive Plan is 10,000,000 shares. As of May 31, 2016, no award has been granted under 2016 Share Incentive Plan.

A summary of share options activity under 2006 Share Incentive Plan for years ended May 31, 2014, 2015 and 2016 was as follows:


	Weighted Number of options			Weighted average exercise prices		remaining contractual life		Aggregated intrinsic value
				US$		years		US$
Options outstanding at May 31, 2013		3,637,249			9.27		6.39		47,503

Granted		—			—
Exercised		(2,113,094	)		8.37
Forfeited		(252,000	)		12.19

Options outstanding at May 31, 2014		1,272,155			10.18		6.20		19,898

Granted		—			—
Exercised		(953,514	)		11.81
Forfeited		—			—

Options outstanding at May 31, 2015		318,641			5.30		1.92		5,903

Granted		—			—
Exercised		(240,304	)		5.03
Forfeited		—			—

Options outstanding at May 31, 2016		78,337			6.13		0.58		2,829

Options vested and expect to vest at May 31, 2016		78,337			6.13		0.58		2,829

Options exercisable at May 31, 2016		78,337			6.13		0.58		2,829

The total intrinsic value of share options exercised during the years ended May 31, 2014, 2015 and 2016 were US$34,578, US$5,249 and US$4,802, respectively. No new share options was granted during the years ended May 31, 2014, 2015 and 2016, respectively. As of May 31, 2016, no unrecognized compensation expense related to share options.

NES

The following table summarizes information regarding NES:


NES	Grant-date Shares granted		fair value and intrinsic value
			US$
Grant date:
January 24, 2008		2,720,000		12.75
March 11, 2008		152,000		14.00
July 1, 2008		278,500		13.75
Oct 28, 2008		3,200		12.65
May 15, 2009		205,548		12.75
June 15, 2009		316,200		15.13
May 26, 2010		556,848		21.75
June 10, 2011		811,020		25.11
July 23, 2012		1,956,935		12.19
May 27, 2013		208,590		20.33
July 19, 2013		19,830		22.80
July 23, 2014		209,650		21.01
September 29, 2014		24,020		22.32
February 5, 2015		600,000		18.52
July 9, 2015		486,330		22.69
October 19, 2015		60,000		22.45

Total		8,608,671

In May 2010, the Company granted 556,848 NES to employees which is eligible to vest between June 2010 to June 2015.

In June 2011, the Company granted 811,020 NES to employees which is eligible to vest between November 2011 to May 2014.

In July 2012, the Company granted 1,956,935 NES to employees which is eligible to vest between May 2013 to May 2015.

In May 2013, the Company granted 208,590 NES to employees which is eligible to vest on May 31, 2014.

In July 2013, the Company granted 19,830 NES to employees which is eligible to vest on May 31, 2014.

In July 2014, the Company granted 209,650 NES to employees which is eligible to vest on May 31, 2015.

In September 2014, the Company granted 24,020 NES to employees which is eligible to vest on May 31, 2015.

In February 2015, the Company granted 600,000 NES to employees which is eligible to vest 240,000, 180,000 and 180,000 on December 31, 2015, 2016 and 2017, respectively.

In July 2015, the Company granted 486,330 NES to employees which is eligible to vest on May 31, 2016.

In October 2015, the Company granted 60,000 NES to employees which is eligible to vest 20,000, 20,000 and 20,000 on May 31, 2016, December 31, 2016 and 2017, respectively.

As of May 31, 2016, 4,714,490 common shares out of the 16,000,000 common shares had been issued to employees and non-employees upon the vesting of their NES, and 2,097,814 shares out of the 5,246,349 treasury shares had been reissued to employees and non-employees upon the vesting of their NES.

A summary of NES activities under 2006 Share Incentive Plan for the years ended May 31, 2014, 2015 and 2016 was as follows:


	Number of NES			Weighted- average grant date fair value and intrinsic value
				US$
NES outstanding at May 31, 2013		1,510,970			13.45
Granted		19,830			22.80
Vested		(810,052	)		14.30
Forfeited		(100,818	)		14.97

NES outstanding at May 31, 2014		619,930			12.39

Granted		833,670			19.26
Vested		(575,432	)		15.44
Forfeited		(271,768	)		13.23

NES outstanding at May 31, 2015		606,400			18.55

Granted		546,330			22.66
Vested		(712,330	)		21.39
Forfeited		(40,400	)		20.61

NES outstanding at May 31, 2016		400,000			18.91

NES vested and expect to vest at May 31, 2016		400,000			18.91

The total fair value of shares vested during the year ended May 31, 2016 was US$15,235. The weighted average grant date fair value of NES granted during the years ended May 31, 2014, 2015 and 2016 was US$22.80, US$19.26 and US$22.66 respectively. As of May 31, 2016, total unrecognized compensation expense for NES of US$3,388 is expected to be recognized over a weighted average period of 1.22 years.

Related Party Transaction

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Income Taxes

12 Months Ended

May 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

15.

INCOME TAXES

Significant components of provision for income taxes for the years ended May 31, 2014, 2015 and 2016 were as follows:


	Years ended May 31,
	2014			2015			2016
	US$			US$			US$
Current:
PRC		28,235			31,552			39,467

Deferred:
PRC		(2,193	)		(5,331	)		(1,936	)

Total provision for income taxes		26,042			26,221			37,531

The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands.

The Company’s subsidiaries Smart Shine, Winner Park and Elite Concept are located in Hong Kong and are subject to an income tax rate of 16.5% for taxable income earned in Hong Kong. Elite Concept and Smart Shine received a special dividend of US$55,587 and US$75,898 during the years ended May 31, 2015 and 2016. The withholding tax of US$5,559 and US$7,590 in connection with the dividends were fully paid during the years ended May 31, 2015 and 2016, respectively.

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

Enterprises that qualify as a high and new technology enterprise (“HNTE”) are subject to a tax rate of 15%. Beijing Decision, Beijing Hewstone and Xuncheng continued to qualify as HNTE in Beijing and were subject to a tax rate of 15% during the years ended May 31, 2014, 2015 and 2016. Beijing Pioneer qualified as HNTE and enjoys a tax rate of 15% since January 2015.

Enterprises that qualify as the “newly established software enterprise” (“NESE”) are exempt from EIT for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years. Beijing Pioneer, Shanghai Smart Words, Beijing Smart Wood, Beijing Right Time, Beijing Joy Tend, Beijing Top, Beijing Magnificence and Beijing Shenghe were qualified as NESE and enjoyed the EIT tax benefit that began from January 2010, January 2011, January 2012, January 2013, January 2013, January 2014, January 2015 and January 2014, respectively.

Beijing Haidian School was not required by the governing tax bureau to pay any EIT since its establishment through May 31, 2016. If Beijing Haidian School is required to pay EIT in future, this could have material impact to the Group’s consolidated financial statements. However, the Group believes that it is more likely than not that any change to the tax treatment of Beijing Haidian School shall be prospectively applied.

Significant components of the Group’s deferred tax assets and liabilities were as follows (1):


	As of May 31,
	2015			2016
	US$			US$
Current deferred tax assets
Allowance doubtful accounts		205			—
Accrued expenses		15,990			—
Deferred revenue for incentive plan		2,382			—

Total current deferred tax assets		18,577			—
Less: valuation allowance		(589	)		—

Current deferred tax assets, net		17,988			—

Non-current deferred tax assets
Allowance doubtful accounts		—			252
Accrued expenses		—			18,427
Deferred revenue for incentive plan		—			2,376
Net operating loss carry-forwards		7,403			6,910

Total non-current deferred tax assets		7,403			27,965
Less: valuation allowance		(2,363	)		(3,624	)

Non-current deferred tax assets, net		5,040			24,341

Non-current deferred tax liabilities
Acquired of non-current assets		(2,461	)		(1,982	)

Total non-current deferred tax liabilities		(2,461	)		(1,982	)

(1)

The Group chose to early adopt ASU 2015-17 and classified all deferred tax assets and liability as noncurrent as of May 31,2016. The Group did not retrospectively apply the changes to prior years.

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

The Group determined the valuation allowance on an entity by entity basis. The valuation allowance, which is primarily related to entities with net operating loss carry-forwards for which the Company does not believe it will ultimately be realized, was US$3,624 as of May 31, 2016, or an increase of US$672 from $2,952 as of May 31, 2015.

As of the year ended May 31, 2016, the Group had net operating loss carried forward of US$39,270 from the Company’s PRC subsidiaries and VIEs, which will expire on various dates from May 31, 2017 to May 31, 2021.

A reconciliation of the effective tax rates from the 25% statutory tax rates was as follows for the years ended May 31, 2014, 2015 and 2016:


	Years ended May 31,
	2014			2015			2016
	%			%			%
Statutory tax rate		25.00			25.00			25.00
Effect of expenses not deductible for tax purposes		4.33			4.91			4.57
Effect of tax holiday		(20.34	)		(20.82	)		(18.05	)
Changes in valuation allowance		(0.09	)		(0.59	)		0.25
Effect of dividend withholding tax		1.81			3.39			2.27

Total provision for income taxes		10.71			11.89			14.04

If the tax holidays granted to the WFOEs and current tax treatments on certain schools and subsidiaries of New Oriental China were not available, the Group’s income tax expense would have increased by US$49,464, US$47,080 and US$47,559, the basic net income per share attributable to the Company would decrease by US$0.32 , US$0.30 and US$0.30 for the years ended May 31, 2014, 2015 and 2016, respectively, and the diluted net income per share attributable to the Company would decrease by US$0.31, US$0.30 and US$0.30 for the years ended May 31, 2014, 2015 and 2016, respectively.

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

If the Company were to be a non-resident for PRC tax purposes, dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax. In the case of dividends paid by PRC schools and subsidiaries to their foreign investors, the withholding tax would be 10%, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. During the year ended May 31, 2015, Shanghai Smart Words paid US$5,559 withholding tax when it paid a special dividend to Smart Shine. During the year ended May 31, 2016, Beijing Hewstone, Shanghai Smart Words and Beijing Decision paid US$7,590 withholding tax when they paid a special dividend to their parent companies, Elite Concept.

Aggregate undistributed earnings of the Company’s PRC subsidiaries and VIEs that are available for distribution was US$789,338 and US$1,133,217 as of May 31, 2015 and May 31, 2016, respectively. Upon distribution of such earnings, the Company will be subject to PRC EIT taxes, the amount of which is impractical to estimate. The Company did not record any tax on any of the aforementioned undistributed earnings because the relevant subsidiaries and VIEs do not intend to declare dividends and the Company intends to permanently reinvest it within the PRC. Additionally, no deferred tax liability was recorded for taxable temporary differences attributable to the undistributed earnings because the Company believes the undistributed earnings can be distributed in a manner that would not be subject to income tax.

The Group did not identify any significant unrecognized tax benefits for the years ended May 31, 2014, 2015 and 2016, respectively. The Group did not incur any significant interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months. The Group has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods.

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

Net Income Per Share

12 Months Ended

May 31, 2016

Earnings Per Share [Abstract]

Net Income Per Share

16.

NET INCOME PER SHARE

The following table sets forth the computation of basic and diluted net income per share for the periods indicated:


	Years ended May 31,
	2014		2015		2016
	US$		US$		US$
Numerator used in basic and diluted net income per share:
Net income attributable to New Oriental
Education &Technology Group Inc.		215,704		193,013		224,884

Net income available for future distribution		215,704		193,013		224,884

Shares (denominator):
Weighted average common shares outstanding used in computing basic net income per share		156,033,992		156,438,606		156,782,439

Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method		1,869,472		863,568		609,247

Weighted average common shares outstanding used in computing diluted net income per share		157,903,464		157,302,174		157,391,686

Net income per share
- Basic		1.38		1.23		1.43
- Diluted		1.37		1.23		1.43

The weighted average of 2,345,395, 1,940,781 and 1,596,948 treasury shares have been excluded in computing basic net income per share for the years ended May 31, 2014, 2015 and 2016, respectively.

There was no employee stock options excluded from the dilutive share calculation for the years ended May 31, 2014, 2015 and 2016 due to anti-dilutive effects.

Related Party Transaction

12 Months Ended

May 31, 2016

17.

RELATED PARTY TRANSACTION

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

Balances:


			Amounts due from related parties- non current As of May 31,
	Notes	Relationship	2015		2016
			US$		US$
Metropolis Holding China Limited	(1)	Company controlled by Chairman		1,497		1,741


						Amounts due from related parties- current As of May 31,								Amounts due to related parties- current As of May 31,
	Notes			Relationship		2015				2016				2015				2016
						US$				US$				US$				US$
Metropolis Holding China Limited		(1)			Company controlled by Chairman		1,096				637				—				—
MaxEn		(2)			Joint Venture		2,490				812				1,992				13
Zhishang Education					Joint Venture		—								3				—
Beijing Haiwei Career Services Co., Ltd (“Haiwei Career”)		(3)			Joint Venture		—				1,553				—				—
Dianshijingwei		(4)			Long-term investee		—				1,520				—				—
Others		(5)					—				17				—				29

Total							3,586				4,539				1,995				42


Transactions:										Rental expense For the years ended May 31
										2014				2015				2016
										US$				US$				US$
Metropolis Holding China Limited		(1)			Company controlled by Chairman						4,173				5,298				7,139


										Gain on disposal of subsidiaries For the years ended May 31
										2014				2015				2016
										US$				US$				US$
MaxEn		(Note 4)			Joint Venture						3,621				—				—


										Loan to related parties For the years ended May 31
										2014				2015				2016
										US$				US$				US$
Haiwei Career		(3)			Joint Venture						—				—				1,520
Beijing Weixue Mingri Network Technology Co., Ltd.(“Weixuemingri”)		(6)			Joint Venture						—				—				998

Total											—				—				2,518

								Revenue For the years ended May 31
								2014				2015				2016
								US$				US$				US$
MaxEn			Joint Venture						—				—				177
Beijing Tongban Education & Technology Co. Ltd. (“Tongban”)			Long-term investee						—				—				3
STEMedu.cn			Long-term investee														11

Total									—				—				191


								Cost For the years ended May 31
								2014				2015				2016
								US$				US$				US$
STEMedu.cn			Long-term investee						—				—				30

(1)

Since April 2010, the Group began renting a large portion of a building owned by Metropolis Holding China Limited for office space. In March 2012, Metropolis Holding China Limited was acquired by a company wholly owned by Mr. Yu, the Group’s chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2016, the current and non-current amounts due from Metropolis Holding China Limited were US$637 and US$1,741, respectively, which represented prepaid rent and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by all of the directors.

(2)

In September 2012, MaxEn became a joint venture of the Group. As a result, MaxEn became a related party of the Group thereafter. As of May 31, 2016, the amount due from MaxEn was US$812, which represented MaxEn’s pre-operating expenses of US$377 prepaid by the Group, US$91 payable to Beijing Decision for service fee and unpaid consideration of US$344 for disposal of North Star; the amount due to MaxEn was US$13, which represented miscellaneous payments paid for the Group. The amount due to MaxEn is non-interest bearing and unsecured and has no fixed repayment terms.

(3)

In October 2014, Haiwei Career became a joint venture of the Group. As a result, Haiwei Career became a related party of the Group. As of May 31, 2016, the amount due from Haiwei Career, was US$1,553 in which US$1,520 represented loans from the Group to Haiwei Career with non-interest bearing for its daily operation supporting. All the loans are payable within one year.

(4)	As of May 31, 2016, the amount due from Dianshijingwei represented the non-interest bearing loan provided by the Group before the disposal of Dianshijingwei to support its daily operation.

(5)	As of May 31, 2016, the balance in “others” included the current receivables from long-term investees of Tongban, Goldern Finance and STEMedu.cn.

(6)	As of May 31, 2016, the Group lent non-interest bearing loan with a total amount of US$998 to Weixuemingri to support its daily operation. The Group fully wrote off the outstanding loan in the same year.

Commitments and Contingencies

12 Months Ended

May 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

18.

COMMITMENTS AND CONTINGENCIES

Operating leases

The Group leases offices, classroom and warehouse facilities under operating leases. The terms of substantially all of these leases are ten years or less. Future minimum lease payments under non-cancelable operating leases were as follows on May 31, 2016:


	US$
Years ended May 31:
2017		149,265
2018		126,088
2019		98,760
2020		74,714
2021		46,702
Thereafter		51,483

		547,012

Rent expense for the years ended May 31, 2014, 2015 and 2016 related to all cancelable and non-cancelable leases were US$142,032, US$157,523 and US$173,797, respectively.

Capital commitments

As of May 31, 2016, future minimum capital commitments under non-cancelable construction were as follows:


	US$
Capital commitment for the purchase of property and equipment		1,389
Capital commitment for leasehold improvements		8,038

		9,427

Contingent liabilities

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

Noncontrolling Interests

12 Months Ended

May 31, 2016

Noncontrolling Interest [Abstract]

Noncontrolling Interests

19.

NONCONTROLLING INTERESTS


	Koolearn Corporation US$			Xuncheng US$			New Road US$			Jinzhou School US$			Total US$
Balance as of May 31, 2013 and 2014		—			—			—			—			—
Capital injection from noncontrolling interest shareholders		3,752			—			39			—			3,791
(Loss) attributed to noncontrolling interest shareholders		(294	)		—			(1	)		—			(295	)

Balance as of May 31, 2015		3,458			—			38			—			3,496

Capital injection from noncontrolling interest shareholders		—			28,737						182			28,919
Capital repurchase from noncontrolling interest shareholders		(3,497	)		—			—			—			(3,497	)
Unrealized gain on available-for-sale securities attributed to noncontrolling interest shareholders		—			999			—			—			999
Foreign currency translation adjustment attributed to noncontrolling interest shareholders		—			(269	)		(2	)		—			(271	)
Gain (loss) attributed to noncontrolling interest shareholders		39			423			3			(21	)		444

Balance as of May 31, 2016		—			29,890			39			161			30,090

In February 2015, Koolearn Corporation issued 5,000,000 ordinary shares to certain employees and received the cash consideration of US$3,752. As the Company still retained a controlling interest in Koolearn Corporation, the disposal was accounted as an equity transaction in the Company’s consolidated financial statements and the Company recognized a noncontrolling interest representing the 5.9% equity interest over Koolearn Corporation as of May 31, 2015. In September 2015, the Group repurchased all these shares from the employees at the original purchase price per share. As the Group retained control over Koolearn before and after the repurchase of the 5.9% interest, the acquisition of this additional equity interest was accounted as an equity transaction in the Company’s consolidated financial statements.

In February 2015, New Road which provides travel agent service was established. The Company and another investor have 51% and 49% equity interest, respectively. The cash consideration was fully paid by the other investor as of May 31, 2015.

In November 2015, the Company sold a 21% ownership of Xuncheng to seven limited partnership entities (“LPs”) representing the employees of the Group. In April 2016, the Company further sold another 12.5% ownership of Xuncheng to Lin Zhi Tencent Technology Co., Ltd an affiliate of Tencent Holdings Limited. All the cash consideration was fully paid by the other investors as of May 31, 2016. As the Group retained control over Xuncheng subsequent to the above transactions, the disposal was accounted as an equity transaction in the Company’s consolidated financial statements. Subsequent to the transaction, the Group’s interest over Xuncheng was diluted to 69.12% as of May 31, 2016.

In April 2016, Jinzhou School which provides language training services was established. The Company and another investor have 60% and 40% equity interest, respectively. The cash consideration was fully paid by the other investor as of May 31, 2016.

Segment Information

12 Months Ended

May 31, 2016

Segment Reporting [Abstract]

Segment Information

20.

SEGMENT INFORMATION

The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Group. During the years ended May 31, 2014 and 2015, the Group identified six operating segments, including language training and test preparation, primary and secondary school education, online education, content development and distribution, pre-school education and overseas study consulting services. During the year end ended May 31, 2016, the Group further separated study tour previously included in overseas study consulting services as a separate operating segment. The seven operating segments for the year ended May 31, 2016 are identified as language training and test preparation, primary and secondary school education, online education, content development and distribution, overseas study consulting services, pre-school education and study tour. Language training and test preparation and primary and secondary school education have been identified as reportable segments. Online education, content development and distribution, overseas study consulting services, pre-school education and study tour operating segments were aggregated as others because individually they do not exceed the 10% quantitative threshold.

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

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

For the year ended May 31, 2014


	Language training and test preparation courses			Primary and secondary education			Others			Consolidated
	US$			US$			US$			US$
Net revenues		969,947			24,063			144,877			1,138,887

Operating costs and expenses:
Cost of revenues		(388,998	)		(8,488	)		(54,183	)		(451,669	)
Selling and marketing		(112,092	)		(956	)		(34,009	)		(147,057	)
General and administrative		(204,679	)		(8,748	)		(36,745	)		(250,172	)
Unallocated corporate expenses		—			—			—			(96,043	)

Total operating costs and expenses		(705,769	)		(18,192	)		(124,937	)		(944,941	)
Gain on disposal of subsidiaries		—			—			3,621			3,621

Operating income		264,178			5,871			23,561			197,567

Segment assets		709,979			65,357			245,505			1,020,841
Unallocated corporate assets		—			—			—			582,704

Total assets		709,979			65,357			245,505			1,603,545

For the year ended May 31, 2015


	Language training and test preparation courses			Primary and secondary education			Others			Consolidated
	US$			US$			US$			US$
Net revenues		1,040,380			26,735			179,651			1,246,766

Operating costs and expenses:
Cost of revenues		(442,994	)		(9,083	)		(74,243	)		(526,320	)
Selling and marketing		(122,697	)		(1,039	)		(42,540	)		(166,276	)
General and administrative		(245,315	)		(10,068	)		(49,387	)		(304,770	)
Unallocated corporate expenses		—			—			—			(95,871	)

Total operating costs and expenses		(811,006	)		(20,190	)		(166,170	)		(1,093,237	)

Operating income		229,374			6,545			13,481			153,529

Segment assets		937,020			75,046			299,442			1,311,508
Unallocated corporate assets		—			—			—			640,029

Total assets		937,020			75,046			299,442			1,951,537

For the year ended May 31, 2016


	Language training and test preparation courses			Primary and secondary education			Others			Consolidated
	US$			US$			US$			US$
Net revenues		1,238,572			30,011			209,765			1,478,348

Operating costs and expenses:
Cost of revenues		(516,370	)		(9,812	)		(88,182	)		(614,364	)
Selling and marketing		(125,815	)		(744	)		(48,255	)		(174,814	)
General and administrative		(296,686	)		(12,558	)		(55,937	)		(365,181	)
Unallocated corporate expenses		—			—			—			(128,912	)

Total operating costs and expenses		(938,871	)		(23,114	)		(192,374	)		(1,283,271	)

Gain on disposal of subsidiaries		—			—			3,760			3,760
Operating income		299,701			6,897			21,151			198,837

Segment assets		1,120,580			78,556			411,744			1,610,880
Unallocated corporate assets		—			—			—			743,954

Total assets		1,120,580			78,556			411,744			2,354,834

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/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Mainland China Contribution Plan

12 Months Ended

May 31, 2016

Mainland China Contribution Plan

21.

MAINLAND CHINA CONTRIBUTION PLAN

The Group’s full time employees in the PRC participate in a government-mandated multiemployer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. The total contributions for such employee benefits were US$52,159, US$61,448 and US$71,434 for the years ended May 31, 2014, 2015 and, 2016, respectively.

Statutory Reserve

12 Months Ended

May 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Statutory Reserve

22.

STATUTORY RESERVE

Prior to payment of dividends, pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company’s subsidiaries and VIEs in the PRC must make appropriations from after-tax profit to non-distributable reserve funds as determined by the Board of Directors of each company. These reserves include (i) general reserve and (ii) the development fund.

Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. During the years ended May 31, 2014, 2015 and 2016, US$1,029, US$530 and US$695 was accrued for the general reserve, respectively. Due to the transformation of the legal structure of Xuncheng, reserve of US$766 was reversed and transferred to paid-in capital and additional paid-in capital in the year ended May 31, 2016.

PRC laws and regulations require private schools that require reasonable returns to make annual appropriations of 25% of after-tax income prior to payments of dividend to its development fund, which is to be used for the construction or maintenance of the school or procurement or upgrading of educational equipment, while in the case of a private school that does not require reasonable return, this amount should be equivalent to no less than 25% of the annual increase of net assets of the school as determined in accordance with generally accepted accounting principles in the PRC. During the years ended May 31, 2014, 2015 and 2016, appropriations to the development fund amounted to US$21,116, US$23,212 and US$31,158, respectively.

These reserves are included as statutory reserves in the consolidated statements of changes in equity and comprehensive income. The Group allocated US$22,145, US$23,742 and US$ 31,853 to statutory reserves during the years ended May 31, 2014, 2015 and 2016, respectively. The statutory reserves cannot be transferred to the Company in the form of loans or advances and are not distributable as cash dividends except in the event of liquidation.

Restricted Net Assets

12 Months Ended

May 31, 2016

Receivables [Abstract]

Restricted Net Assets

23.

RESTRICTED NET ASSETS

Relevant PRC laws and regulations restrict the WFOEs and VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserves and their share capital, to the Company in the form of loans, advances or cash dividends. The balance of restricted net assets was US$270,674 and US$358,956, of which US$216,526 and US$292,542 was attributed to the paid in capital and statutory reserves of the VIEs and US$54,148 and US$66,414 was attributed to the paid in capital and statutory reserves of the WFOEs, as of May 31, 2015 and 2016, respectively. The WFOEs’ accumulated profits may be distributed as dividends to the Company without the consent of a third party. The VIEs’ revenues and accumulated profits may be transferred to the Company through contractual arrangements without the consent of a third party. Under applicable PRC law, loans from PRC companies to their offshore affiliated entities require governmental approval, and advances by PRC companies to their offshore affiliated entities must be supported by bona fide business transactions.

SUBSEQUENT EVENTS

12 Months Ended

May 31, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

24.

SUBSEQUENT EVENTS

In January 2016, the Group invested US$12,310 in the convertible bonds issued by Shangjiachongye (Refer to Note 12). Subsequently in July 2016, the Group converted all the convertible bonds into redeemable preferred shares of Shangjiachongye for a 4.9% equity interest. In the meantime, the Group additionally invested US$12,205 into redeemable preferred shares for another 4.9% equity interest. As a result, the Group in total held redeemable preferred shares representing 9.8% equity interest and has fully paid the consideration. The Group is in the process of assessing the accounting treatment.

Schedule I - Condensed Financial Information of Parent Company

12 Months Ended

May 31, 2016

Schedule I - Condensed Financial Information of Parent Company

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company

Balance Sheets

(In thousands, except share and share data)


	As of May 31,
	2015			2016
	US$			US$
ASSETS
Current assets:
Cash and cash equivalents		22,748			11,984
Term deposit		—			10,000
Prepaid expense and other current assets		10,780			5,900
Amounts due from related parties		25,696			16,758

Total current assets		59,224			44,642
Long-term investments		51,902			96,498
Investments in subsidiaries and VIEs		1,194,328			1,353,090

Total assets		1,305,454			1,494,230

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other current liabilities		9,689			6,016
Amounts due to related parties		75,417			83,642

Total current liabilities		85,106			89,658

Equity:
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2015 and 2016; 158,379,387 shares issued as of May 31, 2015 and 2016; 156,486,763 and 157,439,397 shares outstanding as of May 31, 2015 and 2016, respectively)		1,584			1,584
Treasury stock		(19	)		(9	)
Additional paid-in capital		141,653			223,422
Retained earnings		977,625			1,116,627
Accumulated other comprehensive income		99,505			62,948

Total shareholders’ equity		1,220,348			1,404,572

Total liabilities and equity		1,305,454			1,494,230

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company

Statements of Operations

(In thousands)


	Years ended May 31,
	2014			2015			2016
	US$			US$			US$
Operating costs and expenses:
General and administrative		20,435			12,963			16,732

Total operating costs and expenses		20,435			12,963			16,732

Operating loss		(20,435	)		(12,963	)		(16,732	)
Interest income		1			2			1
Equity in earnings of subsidiaries and VIEs		236,138			205,974			241,615

Net income		215,704			193,013			224,884

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company

Statements of Comprehensive Income

(In thousands)


	Years ended May 31,
	2014			2015		2016
	US$			US$		US$
Net income		215,704			193,013		224,884

Other comprehensive income, net of tax
Foreign currency translation adjustment		(17,894	)		12,006		(72,193	)
Unrealized gain on available-for-sale securities, net of tax effect of nil, nil and nil for years ended May 31, 2014, 2015 and 2016		586			21,940		35,636

Other comprehensive (loss) / income		(17,308	)		33,946		(36,557	)

Comprehensive income		198,396			226,959		188,327

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company Statements of Changes in Equity

(In thousands, except share data)


	Common shares					Additional paid-in capital			Treasury stock			Retained earnings			Accumulated other comprehensive income			Total shareholders’ equity
	Unrestricted shares			Amount		Additional paid-in capital			Treasury stock			Retained earnings			Accumulated other comprehensive income			Total shareholders’ equity
	Unrestricted shares			US$		US$			US$			US$			US$			US$
Balance at June 1, 2013		156,695,987			1,573		164,336			(17	)		608,493			82,867			857,252
Issuance of ADS shares for the exercises of employee share options		—			11		7,837			—			—			—			7,848
Reissuance of Treasury stock for the exercises of employee share options		1,014,727			—		13,514			10			—			—			13,524
Reissuance of Treasury stock for Non-vested equity shares vested		810,052			—		(8	)		8			—			—			—
Share based compensation expense		—			—		20,079			—			—			—			20,079
Dividend declared		—			—		(14,891	)		—			(39,585	)		—			(54,476	)
Share repurchase		(762,100	)		—		(16,858	)		(7	)		—			—			(16,865	)
Net income		—			—		—			—			215,704			—			215,704
Foreign currency translation adjustment		—			—		—			—			—			(17,894	)		(17,894	)
Unrealized gain on available-for-sale securities, net of tax effect of nil		—			—		—			—			—			586			586

Balance at May 31, 2014		157,758,666			1,584		174,009			(6	)		784,612			65,559			1,025,758

Reissuance of Treasury stock for the exercises of employee share options		953,514			—		11,353			9			—			—			11,362
Reissuance of Treasury stock for Non-vested equity shares vested		575,432			—		(6	)		6			—			—			—
Share based compensation expense		—			—		15,689			—			—			—			15,689
Share repurchase		(2,800,849	)		—		(59,392	)		(28	)		—			—			(59,420	)
Net income		—			—		—			—			193,013			—			193,013
Foreign currency translation adjustment		—			—		—			—			—			12,006			12,006
Unrealized gain on available-for-sale securities, net of tax effect of nil		—			—		—			—			—			21,940			21,940

Balance at May 31, 2015		156,486,763			1,584		141,653			(19	)		977,625			99,505			1,220,348

Reissuance of Treasury stock for the exercises of employee share options		240,304			—		2,428			3			—			—			2,431
Reissuance of Treasury stock for Non-vested equity shares vested		712,330			—		(7	)		7			—			—			—
Share based compensation expense		—			—		16,810			—			—			—			16,810
Dividend declared		—			—		—			—			(62,668	)		—			(62,668	)
Net income		—			—		—			—			224,884			—			224,884
Capital injection of noncontrolling interests		—			—		39,579			—			—			—			39,579
Repurchase share from noncontrolling interest		—			—		(255	)		—			—			—			(255	)
Equity restructuring of Xuncheng		—			—		23,214			—			(23,214	)		—			—
Foreign currency translation adjustment		—			—		—			—			—			(72,193	)		(72,193	)
Unrealized gain on available-for-sale securities, net of tax effect of nil		—			—		—			—			—			35,636			35,636

Balance at May 31, 2016		157,439,397			1,584		223,422			(9	)		1,116,627			62,948			1,404,572

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company

Statements of Cash Flows

(In thousands)


	Years ended May 31,
	2014			2015			2016
	US$			US$			US$
Cash flows from operating activities:
Net income		215,704			193,013			224,884
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Equity in earnings of subsidiaries		(236,138	)		(205,974	)		(241,615	)
Dividend received from subsidiaries		83,728			—			49,984
Share-based compensation expense		20,079			15,689			16,810
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(2,958	)		(2,613	)		5,135
Accrued expenses and other current liabilities		4,988			(2,728	)		(3,673	)
Amounts due from/to related parties		(849	)		(762	)		(1,446	)

Net cash provided by (used in) operating activities		84,554			(3,375	)		50,079

Cash flows from investing activities
Investments in term deposits		—			—			(10,000	)
Payment for available-for-sale investments		(16,076	)		(10,300	)		(9,500	)
Proceed from investment withdrawn in Dajie.com		—			—			540
Loan to related parties		—			(6,423	)		1,487
Repayment from related parties		15,500			—			8,512

Net cash used in investing activities		(576	)		(16,723	)		(8,961	)

Cash flows from financing activities:
Proceeds from issuance of common shares upon exercise of share options		21,849			11,332			2,176
Loan from related party		—			75,060			8,610
Loan repayment to related party		(42,643	)		—			—
Cash paid for shares repurchase		(21,487	)		(59,420	)		—
Cash paid for dividend		(54,476	)		—			(62,668	)

Net cash (used in) provided by financing activities		(96,757	)		26,972			(51,882	)

Net (decrease) / increase in cash and cash equivalents		(12,779	)		6,874			(10,764	)
Cash and cash equivalents, beginning of year		28,653			15,874			22,748

Cash and cash equivalents, end of year		15,874			22,748			11,984

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company

Note to the Financial Statements

1.	BASIS FOR PREPARATION

The condensed financial information of the Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Company used the equity method to account for investments in its subsidiaries and VIEs.

2.	INVESTMENTS IN SUBSIDIARIES AND VIEs

The Company and its subsidiaries and VIEs were included in the consolidated financial statements where the inter-company balances and transactions were eliminated upon consolidation. For purpose of the Company’s stand-alone financial statements, its investments in subsidiaries and VIEs were reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries and VIEs were reported as equity in earnings of subsidiaries and VIEs in the accompanying parent company financial statements.

3.	INCOME TAXES

The Company is a Cayman Islands company, therefore, is not subjected to income taxes for all years presented.

4.	RELATED PARTY TRANSACTIONS

The following represented related party balances as of May 31, 2015 and 2016:


	May 31,
	2015		2016
	US$		US$
Amount due from related parties:
Winner Park		12		12
Smart Shine		8,512		—
Elite Concept Holdings Limited		8,631		9,897
Koolearn Holdings Limited		—		180
New Oriental China		8,541		6,669

		25,696		16,758

Amount due to related parties:
Elite Concept Holdings Limited		357		357
Abundant State Limited		75,060		81,798
Smart Shine		—		1,487

		75,417		83,642

All related party balances were non-interest bearing and unsecured.

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Significant Accounting Policies (Policies)

12 Months Ended

May 31, 2016

Cash and cash equivalents

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

Business combinations

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

Restricted cash

Allowance for doubtful accounts

Changes in the allowance for doubtful accounts were as follows:


	As of May 31,
	2015			2016
	US$			US$
Beginning balance		265			801
Charge during the year		676			235
Written-off		(140	)		(628	)

Ending balance		801			408

Inventory

Inventory is stated at the lower of cost or market value.

Land use rights

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

Property and equipment


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

Construction in progress

Impairment of long-lived assets

Goodwill

Cost Method Investments

(a)

Cost Method Investments

Equity Method Investments

(b)

Equity Method Investments

Available-for-sale securities Investments

Long-term held-to-maturity investment

(d)

Long-term held-to-maturity investment

The Group’s long-term held-to-maturity investment represents a trust guaranteed by a bank with the maturity of more than one year, which is stated at its amortized cost.

Value added tax ("VAT")

Value added tax (“VAT”)

Revenue recognition

(a)

Educational programs and services

(b)

Books and others

Operating leases

Advertising costs

Government subsidies

Foreign currency translation

Foreign currency risk

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.

The Group determines the transfers between levels are deemed to have occurred at the end of the periods presented.

Measured fair value on a recurring basis


	May 31, 2015
Description	Quoted Prices in Active Market for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
	US$		US$		US$		US$
Available for sales investments:

Common Shares		16,950		—		—		16,950
Redeemable preferred shares		—		50,157		—		50,157

Total		16,950		50,157		—		67,107


	May 31, 2016
Description	Quoted Prices in Active Market for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
	US$		US$		US$		US$
Available for sales investments:

Common Shares		15,945		—		—		15,945
Redeemable preferred shares		—		42,263		69,873		112,136
Convertible bond		—		12,310		—		12,310
Asset management plan and trust		—		23,413		—		23,413

Total		15,945		77,986		69,873		163,804

The following table provides additional information about the reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs (level 3).


	Available-for-sale securities For the year ended May 31, 2016
	US$
Balance at June 1, 2015		—
Transfer from level 2 fair value measurements		63,881
Initial recognition		2,844
Unrealized gain		3,148

Balance at May 31, 2016		69,873

Measured fair value on a nonrecurring basis

Fair value of financial instruments

Net income per share

Income taxes

Comprehensive income

Share-based compensation

Concentration of credit risk

Newly adopted accounting pronouncements

Recently issued accounting pronouncements not yet adopted

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price to the performance obligations in the contract.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

An entity should apply the amendments in this ASU using one of the following two methods:

Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients:

•

For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period.

•

Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application.

If an entity elects this transition method it also should provide the additional disclosures in reporting periods that include the date of initial application of:

•

The amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change.

•

An explanation of the reasons for significant changes.

The Group is in the process of evaluating the impact of this pronouncement to its consolidated financial statements.

•

Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE).

•

Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs.

The new guidance makes targeted improvements to existing U.S. GAAP by:

•

Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes;

•

Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities;

•

Identify the contract(s) with a customer.

Identify the performance obligations in the contract.

Determine the transaction price.

Allocate the transaction price to the performance obligations in the contract.

Recognize revenue when (or as) the entity satisfies a performance obligation.

Organization and Principal Activities (Tables)

12 Months Ended

May 31, 2016

Details of Company's Subsidiaries and VIE and Its Subsidiaries

As of May 31, 2016, details of the Company’s subsidiaries, variable interest entity and its schools and subsidiaries were as follows:

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Subsidiaries of the Company:

Beijing Decision Education & Consulting Company Limited (“Beijing Decision”)

April 20, 2005

PRC

100%

Educational information

system and

other consulting services

Beijing Judgment Education & Consulting Company Limited (“Beijing Judgment”)

April 20, 2005

PRC

100%

Educational consulting and
investing activities

Beijing Hewstone Technology Company Limited (“Beijing Hewstone”)

April 20, 2005

PRC

100%

Educational software

development

and distribution and other

consulting services

Beijing Pioneer Technology Company Limited (“Beijing Pioneer”)

January 8, 2009

PRC

100%

Educational software

development

and distribution and other

consulting services

Shanghai Smart Words Software Technology Company Limited (“Shanghai Smart Words”)

December 8, 2010

PRC

100%

Educational consulting and

software development

Beijing Smart Wood Software Technology Company Limited (“Beijing Smart Wood”)

December 21, 2011

PRC

100%

Educational consulting and

software development

Beijing Joy Tend Technology Company Limited (“Beijing Joy Tend”)

January 31, 2013

PRC

100%

Educational consulting and

software development

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Subsidiaries of the Company:

Beijing Right Time Technology Company Limited (“Beijing Right Time”)

January 31, 2013

PRC

100%

Educational consulting

and software
development

Beijing Sincerity Technology Company Limited (“Beijing Sincerity”)

January 31, 2013

PRC

100%

Educational consulting

and software
development

Beijing Magnificence Technology Company Limited (“Beijing Magnificence”)

November 1, 2013

PRC

100%

Educational consulting

and software
development

Beijing Top Technology Company Limited (“Beijing Top”)

November 13, 2013

PRC

100%

Educational consulting

and software
development

Beijing Shenghe Technology Company Limited (“Beijing Shenghe”)

May 27, 2014

PRC

100%

Educational consulting

and software
development

Beijing New Oriental Walkite International Travel Co., Ltd.

May 22, 2012

PRC

100%

Consulting

Walkite International Academy Co., Ltd.

March 16, 2015

U.K.

100%

Consulting

Beijing New Road Information Consulting Services Co., Ltd. (“New Road”)

March 6, 2015

PRC

51%

Consulting

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

April 13, 2015

U.S.A.

100%

Consulting

Beijing Chongshengdongfang Network Technology Co., Ltd. (“Chongshengdongfang”)

December 24, 2014

PRC

100%

Educational consulting

and software
development

Beijing New Oriental Stars Education & Consulting Co., Ltd (“Stars”)

July 11, 2007

PRC

100%

Kindergarten

Beijing Chao Yang District Kindergarten of Stars (“ChaoYang Kindergarten”)

November 9, 2007

PRC

100%

Kindergarten

Nanjing Yuhuatai District New Oriental Kindergarten of Stars (“Nanjing Kindergarten”)

February 20, 2009

PRC

100%

Kindergarten

Qingdao Alice Education & Technology Company Limited (“Qingdao Alice “)

August 21, 2014

PRC

100%

Kindergarten

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Subsidiaries of the Company:

Qingdao Laoshan District Happy Alice Kindergarten (“Laoshan Alice”)

December 4, 2014

PRC

100%

Kindergarten

Qingdao Happy Alice Kindergarten (“Qingdao Happy Alice”)

November 29, 2005

PRC

100%

Kindergarten

Qingdao Chengyang District Happy Alice Kindergarten (“Chengyang Alice”)

October 30, 2014

PRC

100%

Kindergarten

Elite Concept Holdings Limited (“Elite Concept”)

December 3, 2007

Hong Kong

100%

Educational Consulting

Winner Park Limited (“Winner Park”)

December 9, 2008

Hong Kong

100%

Educational Consulting

Smart Shine International Limited (“Smart Shine”)

December 9, 2008

Hong Kong

100%

Educational Consulting

Abundant State Limited (“Abundant”)

May 30, 2014

BVI

100%

Educational Consulting

Koolearn Corporation (“Koolearn Cayman”)

June 10, 2013

Cayman

100%

On-line Education

Koolearn Holding Limited (“Koolearn HK”)

June 21, 2013

Hong Kong

100%

Educational Consulting

Variable interest entity of the Company:

Beijing New Oriental Education & Technology (Group) Co., Ltd (“New Oriental China”)

August 2, 2001

PRC

N/A

Education consulting,
software development
and distributions and
other services

Schools and subsidiaries of New Oriental China:

Beijing Haidian District Privately-Funded New Oriental School (“Beijing Haidian School”)

October 5, 1993

PRC

N/A

Language and post-
secondary education

Shanghai Yangpu District New Oriental Advanced Study School

June 1, 2000

PRC

N/A

Language education

Guangzhou Haizhu District Privately-Funded New Oriental Training School (“Guangzhou Haizhu School”) (a)

September 8, 2000

PRC

N/A

Language education

Guangzhou New Oriental Training School (“Guangzhou School”) (a)

August 20, 2013

PRC

N/A

Language education

Guangzhou Panyu District Privately-Funded New Oriental Training Centre (“Guangzhou Panyu School”) (a)

June 19, 2013

PRC

N/A

Language education

Wuhan New Oriental Training School

April 28, 2002

PRC

N/A

Language education

Tianjin New Oriental Training School

August 21, 2002

PRC

N/A

Language education

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Xi’an Yanta District New Oriental School

November 26, 2002

PRC

N/A

Language education

Nanjing Gulou New Oriental Advanced Study School

November 28, 2002

PRC

N/A

Language education

Shenzhen New Oriental Training School

October 15, 2003

PRC

N/A

Language education

Shenyang New Oriental Foreign Language Training School

June 18, 2003

PRC

N/A

Language education

Chongqing New Oriental Training School

August 15, 2003

PRC

N/A

Language education

Chengdu New Oriental School

August 18, 2003

PRC

N/A

Language education

Xiangyang New Oriental Training School

October 26, 2004

PRC

N/A

Language education

Changsha Furong District New Oriental Training School

May 25, 2005

PRC

N/A

Language education

Jinan New Oriental School

May 31, 2005

PRC

N/A

Language education

Taiyuan New Oriental Training School

April 20, 2005

PRC

N/A

Language education

Ha’er Bin Nangang District New Oriental Training School

May 20, 2005

PRC

N/A

Language education

Changchun New Oriental Training School

July 26, 2005

PRC

N/A

Language education

Hangzhou New Oriental Advanced Study School (“Hangzhou School”) (b)

July 21, 2005

PRC

N/A

Language education

Hangzhou New Oriental Education & Consulting Company Limited

May 8, 2012

PRC

N/A

Language education

Fuyang New Oriental Training School (“Fuyang School”) (b)

October 22, 2012

PRC

N/A

Language education

Zhengzhou New Oriental Training School

July 19, 2005

PRC

N/A

Language education

Zhuzhou New Oriental Training School

April 30, 2006

PRC

N/A

Language education

Shijiazhuang New Oriental School

April 3, 2006

PRC

N/A

Language education

Suzhou New Oriental School

April 26, 2006

PRC

N/A

Language education

Anshan New Oriental Training School

June 13, 2006

PRC

N/A

Language education

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Hefei New Oriental Foreign Language Training School

June 13, 2006

PRC

N/A

Language education

Yunnan New Oriental Training School

June 13, 2006

PRC

N/A

Language education

Wuxi New Oriental Advanced Study School

August 14, 2006

PRC

N/A

Language education

Fuzhou Gulou District New Oriental Training School

September 1, 2006

PRC

N/A

Language education

Nanchang Donghu District New Oriental Language School

March 16, 2007

PRC

N/A

Language education

Yichang Xiling District New Oriental School

January 1, 2006

PRC

N/A

Language education

Jingzhou New Oriental School

April 10, 2007

PRC

N/A

Language education

Dalian New Oriental Training School

June 12, 2007

PRC

N/A

Language education

Huangshi New Oriental Training School

March 17, 2008

PRC

N/A

Language education

Ningbo New Oriental School

April 16, 2008

PRC

N/A

Language education

Lanzhou Chengguan District New Oriental School

March 19, 2008

PRC

N/A

Language education

Xiamen Siming District New Oriental Education Training School

July 8, 2008

PRC

N/A

Language education

Qingdao New Oriental Language Training School

August 5, 2008

PRC

N/A

Language education

Nanning New Oriental Education Training School

September 18, 2008

PRC

N/A

Language education

Xuzhou New Oriental Advanced Study School

March 31, 2009

PRC

N/A

Language education

Xiangtan Yuhu District New Oriental School

July 15, 2010

PRC

N/A

Language education

Zhenjiang New Oriental School

July 19, 2010

PRC

N/A

Language education

Luoyang New Oriental School

November 25, 2010

PRC

N/A

Language education

Nantong Chongchuan District New Oriental School

December 28, 2010

PRC

N/A

Language education

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Jilin Chuanying District New Oriental School

March 17, 2011

PRC

N/A

Language education

Guiyang Yunyan District New Oriental School

March 21, 2011

PRC

N/A

Language education

Inner Mongolia Hohhot New Oriental School

April 2, 2011

PRC

N/A

Language education

Foshan New Oriental School

September 1, 2011

PRC

N/A

Language education

Tangshan Lubei District New Oriental School

May 25, 2011

PRC

N/A

Language education

Urumqi New Oriental School

May 22, 2011

PRC

N/A

Language education

Shiyan New Oriental School

May 23, 2011

PRC

N/A

Language education

Quanzhou Fengze District New Oriental Education Training School

June 26, 2015

PRC

N/A

Language education

Wenzhou New Oriental School

August 14, 2015

PRC

N/A

Language education

Weifang New Oriental Training School

October 10, 2015

PRC

N/A

Language education

Shanghai New Oriental Education & Training Company Limited

September 15, 2015

PRC

N/A

Language education

Zhuhai Xiangzhou District New Oriental Training Centre

December 11, 2015

PRC

N/A

Language education

Yangzhou Guangling District New Oriental Training Centre

March 24, 2016

PRC

N/A

Language education

Jinzhou New Oriental Training School (“Jinzhou School”)

April 19, 2016

PRC

N/A

Language education

Changchun Tongwen Gaokao Training School (“Tongwen Gaokao”)

October 27, 2008

PRC

N/A

College admission

examination

training

Changchun Tongwen Senior High School (“Tongwen High Schiool”)

October 27, 2008

PRC

N/A

Primary secondary
school education

China Management Software Institute (“CMSI”)

September 1, 2012

PRC

N/A

Higher education

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Beijing New Oriental Yangzhou Foreign Language School

June 6, 2002

PRC

N/A

Primary secondary

school education

Yangzhou Guangling District New Oriental Kindergarten of Stars (“Yangzhou Kindergarten”)

August 26, 2014

PRC

N/A

Kindergarten

Beijing Changping New Oriental Foreign Language School (“Changping school”)

July 19, 2010

PRC

N/A

Primary secondary

school education

Beijing New Oriental Dogwood Cultural Communications Co., Ltd.

May 16, 2003

PRC

N/A

Sales of educational

materials and products

Beijing New Oriental Dogwood, Bookstore, Audio & Video Co., Ltd.

March 2, 2004

PRC

N/A

Sales of educational

materials and products

Chengdu New Oriental Dogwood Bookstore Products Co., Ltd.

January 18, 2004

PRC

N/A

Sales of educational

materials and products

Chongqing New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

February 25, 2004

PRC

N/A

Sales of educational

materials and products

Shenyang new Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

September 18, 2003

PRC

N/A

Sales of educational

materials and products

Guangzhou Dogwood Bookstore & Audio-Visual Products Co., Ltd.

November 11, 2003

PRC

N/A

Sales of educational
materials and products

Wuhan New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

December 16, 2003

PRC

N/A

Sales of educational

materials and products

Xi’an New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

June 3, 2003

PRC

N/A

Sales of educational

materials and products

Shanghai Dogwood Bookstore & Audio-Visual Products Co., Ltd.

September 28, 2003

PRC

N/A

Sales of educational

materials and products

Changchun New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

October 8, 2005

PRC

N/A

Sales of educational

materials and products

Ha’er Bin New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

March 13, 2006

PRC

N/A

Sales of educational

materials and products

Taiyuan New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd.

July 12, 2006

PRC

N/A

Sales of educational

materials and products

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Hangzhou Dogwood Bookstore Products Co., Ltd

July 25, 2007

PRC

N/A

Sales of educational

materials and products

Nanchang Dogwood Bookstore & Audio-Visual Products Co., Ltd

September 14, 2007

PRC

N/A

Sales of educational
materials and products

Kunming Dogwood Bookstore & Audio-Visual Products Co., Ltd

November 21, 2007

PRC

N/A

Sales of educational
materials and products

Dalian New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

March 25, 2008

PRC

N/A

Sales of educational
materials and products

Lanzhou New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

October 28, 2008

PRC

N/A

Sales of educational
materials and products

Shijiazhuang New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

July 28, 2009

PRC

N/A

Sales of educational
materials and products

Suzhou New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

June 1, 2010

PRC

N/A

Sales of educational
materials and products

Xuzhou New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

September 29, 2010

PRC

N/A

Sales of educational
materials and products

Urumqi Dogwood Bookstore & Audio-Visual Products Co., Ltd

September 13, 2011

PRC

N/A

Sales of educational
materials and products

Xiamen New Oriental Dogwood Bookstore & Audio-Visual Products Co., Ltd

December 8, 2011

PRC

N/A

Sales of educational
materials and products

Hohhot Dogwood Bookstore & Audio-Visual Products Co., Ltd

February 7, 2012

PRC

N/A

Sales of educational
materials and products

Beijing New Oriental Vision Overseas Consultancy Co., Ltd.

February 19, 2004

PRC

N/A

Consulting

Shanghai Vision Overseas Service Co., Ltd.

March 24, 2011

PRC

N/A

Consulting

Shandong New Oriental Vision Overseas Consultancy Co., Ltd.

September 8, 2011

PRC

N/A

Consulting

Shanxi New Oriental Vision Overseas Consultancy Co., Ltd.

April 22, 2014

PRC

N/A

Consulting

Fujian New Oriental Vision Overseas Consultancy Co., Ltd.

May 13, 2014

PRC

N/A

Consulting

Guangdong Vision Overseas Consultancy Co., Ltd.

May 29, 2014

PRC

N/A

Consulting

Xinjiang New Oriental Vision Overseas Consultancy Co., Ltd.

July 9, 2014

PRC

N/A

Consulting

Name

Date of
incorporation
or establishment

Place of
incorporation
(or establishment)/
operation

Legal
ownership

Principal activity

Schools and subsidiaries of New Oriental China:

Shaanxi New Oriental Vision Overseas Consultancy Co., Ltd.

January 23, 2015

PRC

N/A

Consulting

Tianjin New Oriental Vision Overseas Consultancy Co., Ltd.

May 13, 2015

PRC

N/A

Consulting

Inner Mongolia New Oriental Vision Overseas Consultancy Co., Ltd.

May 29, 2015

PRC

N/A

Consulting

Liaoning New Oriental Vision Overseas Consultancy Co., Ltd.

June 10, 2015

PRC

N/A

Consulting

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

June 10, 2015

U.K.

N/A

Consulting

Gansu New Oriental Vision Overseas Consultancy Co., Ltd.

May 15, 2015

PRC

N/A

Consulting

Qingdao New Oriental Vision Overseas Consultancy Co., Ltd.

August 20, 2015

PRC

N/A

Consulting

Hunan New Oriental Vision Overseas Consultancy Co., Ltd.

November 3, 2015

PRC

N/A

Consulting

Beijing New Oriental Vision Overseas Service Co., Ltd.

February 24, 2016

PRC

N/A

Consulting

Beijing New Oriental Dogwood Advertisement Co., Ltd.

January 20, 2004

PRC

N/A

Advertising

Beijing New Oriental Xuncheng Network Technology Co., Inc.Ltd (c)

March 11, 2005

PRC

N/A

On-line education

Beijing New Oriental Kuxuehuisi Network Technology Co., Ltd.

February 1, 2013

PRC

N/A

On-line education

Leci Internet Technology (Beijing) Company Limited

February 11, 2014

PRC

N/A

Educational consulting and
software development

Beijing Dongfangzhuoyong Investment Management Co., Ltd.

April 29, 2014

PRC

N/A

Investment management

Beijing New Oriental MEGAWAY Education & Consulting Co., Ltd.

March 4, 2015

PRC

N/A

Educational consulting

Beijing Aixuehuisi Education & Technology Co., Ltd.

January 6, 2015

PRC

N/A

Technology

Beijing Fishpond Software Technology Co., Ltd.

November 24, 2015

PRC

N/A

Technology

(a)

(b)	Although the Fuyang School is a separate legal entity, from the perspective of the Group’s internal management, Fuyang School and Hangzhou School are considered as one school since they are operated by the same local management in Hangzhou.

(c)	The contractual agreements between Xuncheng, New oriental China and Chongshengdongfang were terminated in September 2015.

Balances and Amounts of Company's WFOEs and VIEs


	As of May 31,
	2015		2016
	US$		US$
Total current assets		753,306		1,262,811
Total non-current assets		511,051		381,262

Total assets		1,264,357		1,644,073

Total current liabilities		673,201		860,877
Total non-current liabilities		1,600		1,432

Total liabilities		674,801		862,309


	Years ended May 31,
	2014			2015			2016
	US$			US$			US$
Net revenues		1,121,205			1,221,101			1,443,851
Net income		266,497			265,485			313,828
Net cash provided by operating activities		371,458			357,893			450,848
Net cash used in investing activities		(240,427	)		(167,847	)		(286,235	)
Net cash provided by financing activities		—			—			69,747

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, 2016

Changes in Allowance for Doubtful Accounts

Changes in the allowance for doubtful accounts were as follows:


	As of May 31,
	2015			2016
	US$			US$
Beginning balance		265			801
Charge during the year		676			235
Written-off		(140	)		(628	)

Ending balance		801			408

Estimated Useful Lives of Assets

Depreciation and amortization is calculated on a straight line basis over the following estimated economic lives:


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

Schedule of Available-for-Sale Securities Recorded in Long Term Investments Include Redeemable Preferred Shares, Common Shares, Convertible Bond and Assets Management Plan and Trust Measured and Recorded at Fair Value on Recurring Basis


	May 31, 2015
Description	Quoted Prices in Active Market for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
	US$		US$		US$		US$
Available for sales investments:

Common Shares		16,950		—		—		16,950
Redeemable preferred shares		—		50,157		—		50,157

Total		16,950		50,157		—		67,107


	May 31, 2016
Description	Quoted Prices in Active Market for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
	US$		US$		US$		US$
Available for sales investments:

Common Shares		15,945		—		—		15,945
Redeemable preferred shares		—		42,263		69,873		112,136
Convertible bond		—		12,310		—		12,310
Asset management plan and trust		—		23,413		—		23,413

Total		15,945		77,986		69,873		163,804

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

The following table provides additional information about the reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs (level 3).


	Available-for-sale securities For the year ended May 31, 2016
	US$
Balance at June 1, 2015		—
Transfer from level 2 fair value measurements		63,881
Initial recognition		2,844
Unrealized gain		3,148

Balance at May 31, 2016		69,873

Business Acquisition (Tables)

12 Months Ended

May 31, 2016

China Management Software Institute [Member]

Purchase Price Allocation

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


	US$			Amortization period
Cash		68
Other current assets		14
Buildings		16,095			23.3-45.3 years
Property, plant and equipment		103			1-5 years
Land use right		1,008			38.5 years
Intangible assets
Student base		110			1.75 years
Goodwill		1,829
Other current liabilities		(45	)
Deferred tax liabilities		(1,727	)

Total		17,455

Qingdao Alice [Member]

Purchase Price Allocation

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


	US$			Amortization period
Cash		2,306
Other current assets		644
Property, plant and equipment		89			1-5 years
Intangible assets
Trademark		1,058			10.1 years
Student base		1,998			2.2 years
Favorable lease		763			8.7 years
Goodwill		7,540
Other current liabilities		(514	)
Deferred tax liabilities		(955	)

Total		12,929

Short-Term Investments (Tables)

12 Months Ended

May 31, 2016

Investments, Debt and Equity Securities [Abstract]

Summary of Short-Term Investments

Short-term investments consisted of the following:


	As of May 31,
	2015		2016
	US$		US$
Held-to-maturity investments		599,935		819,229

Inventory (Tables)

12 Months Ended

May 31, 2016

Inventory Disclosure [Abstract]

Components of Inventory

Inventory consisted of the following:


	As of May 31,
	2015		2016
	US$		US$
Course materials in schools		7,383		5,787
Publications in bookstores		16,600		21,516

		23,983		27,303

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

May 31, 2016

Components of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


	As of May 31,
	2015		2016
	US$		US$
Prepaid rent		35,973		33,135
Advances to suppliers		19,134		23,143
Interest receivable		6,490		9,341
Rental deposit		3,370		7,122
Receivable from the settlement bank for the proceeds of exercise of options and withholding tax		7,636		5,548
Prepaid advertising fees		3,652		3,250
Staff advances (a)		4,589		2,829
Value added taxes recoverable		1,979		2,534
Deposit of advertising & decoration		1,255		1,961
Receivable of social insurance		1,127		1,374
Prepaid property taxes and other taxes		830		616
Others (b)		11,798		8,824

		97,833		99,677

(a)	Staff advances were provided to staff for traveling and related use which are expensed as incurred and staff allowance for on-site enrollment activities.

(b)	Others primarily included maintenance fees, other receivables and other miscellaneous prepayments.

Intangible Assets (Tables)

12 Months Ended

May 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consisted of the following:


	As of May 31,
	2015			2016
	US$			US$
Costs:
Intangible assets with indefinite lives:
Trademark		264			248
Intangible assets with finite lives:
Trademark		1,081			1,293
Courseware		50			47
Student base		2,093			1,978
Favorable lease		1,049			713
License		415			415

		4,952			4,694

Accumulated amortization:
Trademark		(256	)		(383	)
Courseware		(50	)		(47	)
Student base		(569	)		(1,404	)
Favorable lease		(60	)		(123	)
License		(98	)		(119	)

		(1,033	)		(2,076	)

Net carrying amount:
Intangible assets with indefinite lives:
Trademark		264			248
Intangible assets with definite lives:
Trademark		825			910
Courseware		—			—
Student base		1,524			574
Favorable lease		989			590
License		317			296

		3,919			2,618

Goodwill (Tables)

12 Months Ended

May 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Components of Goodwill


	As of May 31,
	2015			2016
	US$			US$
Costs:
Beginning balance		3,692			11,194
Acquisition of Qingdao Alice		7,540			—
Exchange differences		(38	)		(649	)

Ending balance		11,194			10,545

Accumulated goodwill impairment loss:
Beginning balance		—			—

Ending balance		—			—

Goodwill, net		11,194			10,545

Property and Equipment (Tables)

12 Months Ended

May 31, 2016

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment, Net

Property and equipment consisted of the following:


	As of May 31,
	2015			2016
	US$			US$
Buildings		145,159			146,411
Transportation equipment		8,084			8,553
Furniture and education equipment		72,820			76,492
Computer equipment and software		36,502			40,707
Leasehold improvements		152,929			169,345

		415,494			441,508
Less: accumulated depreciation		(186,612	)		(209,937	)
Construction in-process		2,581			6,127

		231,463			237,698

Land Use Rights (Tables)

12 Months Ended

May 31, 2016

Schedule of Long Term Investments

Land Use Rights, Net

Land use rights consisted of the following:


	As of May 31,
	2015			2016
	US$			US$
Land use rights		5,497			5,178
Less: accumulated amortization		(1,089	)		(1,201	)
Exchange differences		(146	)		(71	)

Land use rights, net		4,262			3,906

LONG TERM INVESTMENTS (Tables)

12 Months Ended

May 31, 2016

Investments Schedule [Abstract]

Long-term investments consisted of the following:


	As of May 31,
	2015		2016
	US$		US$
Cost method investments:
Dajie.com Ltd (“Dajie.com”) (a)		2,000		1,460
Equity method investments:
Beijing Dongfangheli Investment and Development Ltd. (“Dongfangheli”) (b)		3,967		3,451
Beijing Zhishang Education & Technology Co., Ltd. (“Zhishang Education”) (c)		2,313		1,164
Juesheng Education Group Ltd. (“Juesheng.com”) (d)		—		3,249
Suzhou Qingrui Education & Technology Co., Ltd. (“Kou100”) (e)		—		3,261
Other Joint Ventures		3,124		2,474
Available-for-sale securities investments:
Shanghai Golden Education & Training Co. Ltd. (“Golden Finance”) (f)		3,398		34,242
Alo7.com Limited (“Alo7.com”) (g)		27,935		29,639
AVIC Trust Tianqi No.556 (“Trust 556”) (h)		—		16,037
Tarena International, Inc. (“Tarena”) (i)		16,950		15,945
Beijing ShangJiaChongYe Education & Technology Co. Ltd.(“Shangjiachongye”) (j)		—		12,310
Juesheng.com (d)		7,440		—
Beijing ROBOROBO Technology Co. Ltd. (“ROBOROBO”) (k)		4,356		9,999
Lele Global Limited (“Lele”) (l)		—		8,500
Special assets management plan - GuotaiYuanxin & New Oriental (“Assets management plan”) (m)		—		7,376
Beijing Yule World Network Technology Co. Ltd. (“STEMedu.cn”) (n)		—		5,992
Beijing TangFengHanYu Education & Technology Co. Ltd. (“Tangfeng”) (o)		—		5,980
Other investments		7,028		17,784
Held-to-maturity investments:(p)		247,480		—

		325,991		178,863

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

(m)

(n)

(o)

(p)

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

May 31, 2016

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	As of May 31,
	2015		2016
	US$		US$
Accrued payroll		103,270		131,151
Payable for purchase of property and equipment		7,433		11,953
Amounts reimbursable to employees (a)		5,418		8,294
Individual taxes withholding		8,148		8,186
Refundable fees received from students (b)		10,023		5,755
Business taxes payable		9,701		5,259
Value added taxes payable		1,147		6,506
Accrued advertising fees		8,210		6,443
Rent payable		3,883		6,285
Welfare payable		6,213		6,004
Royalty fees payable (c)		2,565		3,637
Refundable deposit (d)		1,956		3,161
Accrued professional service fees		1,683		2,352
Other taxes payable		1,887		1,240
Investment payable (e)		1,452		—
Others (f)		5,814		10,818

Total		178,803		217,044

(a)	Amounts reimbursable to employees included traveling and the related expenses incurred by employees on behalf of the Group.

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

(c)	Royalty fees payable related to payments to content providers for on-line learning programs and those to counterparties for copyright and resource sharing.

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

(e)	The balance as of May 31, 2015 represents a payable for an available-for-sale investment in ROBOROBO, which was fully paid in July 2015.

(f)	Others primarily included transportation expenses, utility fees, property management fees, and other miscellaneous expenses payable.

Share-Based Compensation (Tables)

12 Months Ended

May 31, 2016

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

Summary of Share Options Granted and NES

The following table summarizes information regarding the share options granted:


Share options	Shares granted		Grant-date fair value		Exercise price
			US$		US$
Grant date:
February 28, 2006		7,099,500		1.00		2.02
July 21, 2006		1,620,000		1.15		2.38
September 7, 2006		100,000		2.38		3.75
March 5, 2007		3,946,500		4.09		8.75
January 17, 2012		3,060,000		10.33		12.19

Total		15,826,000

NES

The following table summarizes information regarding NES:


NES	Grant-date Shares granted		fair value and intrinsic value
			US$
Grant date:
January 24, 2008		2,720,000		12.75
March 11, 2008		152,000		14.00
July 1, 2008		278,500		13.75
Oct 28, 2008		3,200		12.65
May 15, 2009		205,548		12.75
June 15, 2009		316,200		15.13
May 26, 2010		556,848		21.75
June 10, 2011		811,020		25.11
July 23, 2012		1,956,935		12.19
May 27, 2013		208,590		20.33
July 19, 2013		19,830		22.80
July 23, 2014		209,650		21.01
September 29, 2014		24,020		22.32
February 5, 2015		600,000		18.52
July 9, 2015		486,330		22.69
October 19, 2015		60,000		22.45

Total		8,608,671

Summary of Share Options Activity under 2006 Share Incentive Plan

A summary of share options activity under 2006 Share Incentive Plan for years ended May 31, 2014, 2015 and 2016 was as follows:


	Weighted Number of options			Weighted average exercise prices		remaining contractual life		Aggregated intrinsic value
				US$		years		US$
Options outstanding at May 31, 2013		3,637,249			9.27		6.39		47,503

Granted		—			—
Exercised		(2,113,094	)		8.37
Forfeited		(252,000	)		12.19

Options outstanding at May 31, 2014		1,272,155			10.18		6.20		19,898

Granted		—			—
Exercised		(953,514	)		11.81
Forfeited		—			—

Options outstanding at May 31, 2015		318,641			5.30		1.92		5,903

Granted		—			—
Exercised		(240,304	)		5.03
Forfeited		—			—

Options outstanding at May 31, 2016		78,337			6.13		0.58		2,829

Options vested and expect to vest at May 31, 2016		78,337			6.13		0.58		2,829

Options exercisable at May 31, 2016		78,337			6.13		0.58		2,829

Summary of NES Activities under 2006 Share Incentive Plan

A summary of NES activities under 2006 Share Incentive Plan for the years ended May 31, 2014, 2015 and 2016 was as follows:


	Number of NES			Weighted- average grant date fair value and intrinsic value
				US$
NES outstanding at May 31, 2013		1,510,970			13.45
Granted		19,830			22.80
Vested		(810,052	)		14.30
Forfeited		(100,818	)		14.97

NES outstanding at May 31, 2014		619,930			12.39

Granted		833,670			19.26
Vested		(575,432	)		15.44
Forfeited		(271,768	)		13.23

NES outstanding at May 31, 2015		606,400			18.55

Granted		546,330			22.66
Vested		(712,330	)		21.39
Forfeited		(40,400	)		20.61

NES outstanding at May 31, 2016		400,000			18.91

NES vested and expect to vest at May 31, 2016		400,000			18.91

Income Taxes (Tables)

12 Months Ended

May 31, 2016

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

Significant components of provision for income taxes for the years ended May 31, 2014, 2015 and 2016 were as follows:


	Years ended May 31,
	2014			2015			2016
	US$			US$			US$
Current:
PRC		28,235			31,552			39,467

Deferred:
PRC		(2,193	)		(5,331	)		(1,936	)

Total provision for income taxes		26,042			26,221			37,531

Components of Group's Deferred Tax Assets and Liabilities

Significant components of the Group’s deferred tax assets and liabilities were as follows (1):


	As of May 31,
	2015			2016
	US$			US$
Current deferred tax assets
Allowance doubtful accounts		205			—
Accrued expenses		15,990			—
Deferred revenue for incentive plan		2,382			—

Total current deferred tax assets		18,577			—
Less: valuation allowance		(589	)		—

Current deferred tax assets, net		17,988			—

Non-current deferred tax assets
Allowance doubtful accounts		—			252
Accrued expenses		—			18,427
Deferred revenue for incentive plan		—			2,376
Net operating loss carry-forwards		7,403			6,910

Total non-current deferred tax assets		7,403			27,965
Less: valuation allowance		(2,363	)		(3,624	)

Non-current deferred tax assets, net		5,040			24,341

Non-current deferred tax liabilities
Acquired of non-current assets		(2,461	)		(1,982	)

Total non-current deferred tax liabilities		(2,461	)		(1,982	)

(1)

The Group chose to early adopt ASU 2015-17 and classified all deferred tax assets and liability as noncurrent as of May 31,2016. The Group did not retrospectively apply the changes to prior years.

Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates

A reconciliation of the effective tax rates from the 25% statutory tax rates was as follows for the years ended May 31, 2014, 2015 and 2016:


	Years ended May 31,
	2014			2015			2016
	%			%			%
Statutory tax rate		25.00			25.00			25.00
Effect of expenses not deductible for tax purposes		4.33			4.91			4.57
Effect of tax holiday		(20.34	)		(20.82	)		(18.05	)
Changes in valuation allowance		(0.09	)		(0.59	)		0.25
Effect of dividend withholding tax		1.81			3.39			2.27

Total provision for income taxes		10.71			11.89			14.04

Net Income Per Share (Tables)

12 Months Ended

May 31, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share for the periods indicated:


	Years ended May 31,
	2014		2015		2016
	US$		US$		US$
Numerator used in basic and diluted net income per share:
Net income attributable to New Oriental
Education &Technology Group Inc.		215,704		193,013		224,884

Net income available for future distribution		215,704		193,013		224,884

Shares (denominator):
Weighted average common shares outstanding used in computing basic net income per share		156,033,992		156,438,606		156,782,439

Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method		1,869,472		863,568		609,247

Weighted average common shares outstanding used in computing diluted net income per share		157,903,464		157,302,174		157,391,686

Net income per share
- Basic		1.38		1.23		1.43
- Diluted		1.37		1.23		1.43

Schedule I - Condensed Financial Information of Parent Company (Tables)

12 Months Ended

May 31, 2016

Balances and Transaction with Related Parties

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

Balances:


			Amounts due from related parties- non current As of May 31,
	Notes	Relationship	2015		2016
			US$		US$
Metropolis Holding China Limited	(1)	Company controlled by Chairman		1,497		1,741


						Amounts due from related parties- current As of May 31,								Amounts due to related parties- current As of May 31,
	Notes			Relationship		2015				2016				2015				2016
						US$				US$				US$				US$
Metropolis Holding China Limited		(1)			Company controlled by Chairman		1,096				637				—				—
MaxEn		(2)			Joint Venture		2,490				812				1,992				13
Zhishang Education					Joint Venture		—								3				—
Beijing Haiwei Career Services Co., Ltd (“Haiwei Career”)		(3)			Joint Venture		—				1,553				—				—
Dianshijingwei		(4)			Long-term investee		—				1,520				—				—
Others		(5)					—				17				—				29

Total							3,586				4,539				1,995				42


Transactions:										Rental expense For the years ended May 31
										2014				2015				2016
										US$				US$				US$
Metropolis Holding China Limited		(1)			Company controlled by Chairman						4,173				5,298				7,139


										Gain on disposal of subsidiaries For the years ended May 31
										2014				2015				2016
										US$				US$				US$
MaxEn		(Note 4)			Joint Venture						3,621				—				—


										Loan to related parties For the years ended May 31
										2014				2015				2016
										US$				US$				US$
Haiwei Career		(3)			Joint Venture						—				—				1,520
Beijing Weixue Mingri Network Technology Co., Ltd.(“Weixuemingri”)		(6)			Joint Venture						—				—				998

Total											—				—				2,518

								Revenue For the years ended May 31
								2014				2015				2016
								US$				US$				US$
MaxEn			Joint Venture						—				—				177
Beijing Tongban Education & Technology Co. Ltd. (“Tongban”)			Long-term investee						—				—				3
STEMedu.cn			Long-term investee														11

Total									—				—				191


								Cost For the years ended May 31
								2014				2015				2016
								US$				US$				US$
STEMedu.cn			Long-term investee						—				—				30

(1)

(2)

(3)

(4)	As of May 31, 2016, the amount due from Dianshijingwei represented the non-interest bearing loan provided by the Group before the disposal of Dianshijingwei to support its daily operation.

(5)	As of May 31, 2016, the balance in “others” included the current receivables from long-term investees of Tongban, Goldern Finance and STEMedu.cn.

(6)	As of May 31, 2016, the Group lent non-interest bearing loan with a total amount of US$998 to Weixuemingri to support its daily operation. The Group fully wrote off the outstanding loan in the same year.

Parent Company [Member]

Balances and Transaction with Related Parties

The following represented related party balances as of May 31, 2015 and 2016:


	May 31,
	2015		2016
	US$		US$
Amount due from related parties:
Winner Park		12		12
Smart Shine		8,512		—
Elite Concept Holdings Limited		8,631		9,897
Koolearn Holdings Limited		—		180
New Oriental China		8,541		6,669

		25,696		16,758

Amount due to related parties:
Elite Concept Holdings Limited		357		357
Abundant State Limited		75,060		81,798
Smart Shine		—		1,487

		75,417		83,642

Condensed Financial Information of Parent Company - Balance Sheets

Condensed Financial Information of Parent Company

Balance Sheets

(In thousands, except share and share data)


	As of May 31,
	2015			2016
	US$			US$
ASSETS
Current assets:
Cash and cash equivalents		22,748			11,984
Term deposit		—			10,000
Prepaid expense and other current assets		10,780			5,900
Amounts due from related parties		25,696			16,758

Total current assets		59,224			44,642
Long-term investments		51,902			96,498
Investments in subsidiaries and VIEs		1,194,328			1,353,090

Total assets		1,305,454			1,494,230

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other current liabilities		9,689			6,016
Amounts due to related parties		75,417			83,642

Total current liabilities		85,106			89,658

Equity:
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2015 and 2016; 158,379,387 shares issued as of May 31, 2015 and 2016; 156,486,763 and 157,439,397 shares outstanding as of May 31, 2015 and 2016, respectively)		1,584			1,584
Treasury stock		(19	)		(9	)
Additional paid-in capital		141,653			223,422
Retained earnings		977,625			1,116,627
Accumulated other comprehensive income		99,505			62,948

Total shareholders’ equity		1,220,348			1,404,572

Total liabilities and equity		1,305,454			1,494,230

Condensed Financial Information of Parent Company - Statements of Operations

Condensed Financial Information of Parent Company

Statements of Operations

(In thousands)


	Years ended May 31,
	2014			2015			2016
	US$			US$			US$
Operating costs and expenses:
General and administrative		20,435			12,963			16,732

Total operating costs and expenses		20,435			12,963			16,732

Operating loss		(20,435	)		(12,963	)		(16,732	)
Interest income		1			2			1
Equity in earnings of subsidiaries and VIEs		236,138			205,974			241,615

Net income		215,704			193,013			224,884

Condensed Financial Information of Parent Company - Statements of Comprehensive Income

Condensed Financial Information of Parent Company

Statements of Comprehensive Income

(In thousands)


	Years ended May 31,
	2014			2015		2016
	US$			US$		US$
Net income		215,704			193,013		224,884

Other comprehensive income, net of tax
Foreign currency translation adjustment		(17,894	)		12,006		(72,193	)
Unrealized gain on available-for-sale securities, net of tax effect of nil, nil and nil for years ended May 31, 2014, 2015 and 2016		586			21,940		35,636

Other comprehensive (loss) / income		(17,308	)		33,946		(36,557	)

Comprehensive income		198,396			226,959		188,327

Condensed Financial Information of Parent Company - Statements of Changes in Equity

Condensed Financial Information of Parent Company Statements of Changes in Equity

(In thousands, except share data)


	Common shares					Additional paid-in capital			Treasury stock			Retained earnings			Accumulated other comprehensive income			Total shareholders’ equity
	Unrestricted shares			Amount		Additional paid-in capital			Treasury stock			Retained earnings			Accumulated other comprehensive income			Total shareholders’ equity
	Unrestricted shares			US$		US$			US$			US$			US$			US$
Balance at June 1, 2013		156,695,987			1,573		164,336			(17	)		608,493			82,867			857,252
Issuance of ADS shares for the exercises of employee share options		—			11		7,837			—			—			—			7,848
Reissuance of Treasury stock for the exercises of employee share options		1,014,727			—		13,514			10			—			—			13,524
Reissuance of Treasury stock for Non-vested equity shares vested		810,052			—		(8	)		8			—			—			—
Share based compensation expense		—			—		20,079			—			—			—			20,079
Dividend declared		—			—		(14,891	)		—			(39,585	)		—			(54,476	)
Share repurchase		(762,100	)		—		(16,858	)		(7	)		—			—			(16,865	)
Net income		—			—		—			—			215,704			—			215,704
Foreign currency translation adjustment		—			—		—			—			—			(17,894	)		(17,894	)
Unrealized gain on available-for-sale securities, net of tax effect of nil		—			—		—			—			—			586			586

Balance at May 31, 2014		157,758,666			1,584		174,009			(6	)		784,612			65,559			1,025,758

Reissuance of Treasury stock for the exercises of employee share options		953,514			—		11,353			9			—			—			11,362
Reissuance of Treasury stock for Non-vested equity shares vested		575,432			—		(6	)		6			—			—			—
Share based compensation expense		—			—		15,689			—			—			—			15,689
Share repurchase		(2,800,849	)		—		(59,392	)		(28	)		—			—			(59,420	)
Net income		—			—		—			—			193,013			—			193,013
Foreign currency translation adjustment		—			—		—			—			—			12,006			12,006
Unrealized gain on available-for-sale securities, net of tax effect of nil		—			—		—			—			—			21,940			21,940

Balance at May 31, 2015		156,486,763			1,584		141,653			(19	)		977,625			99,505			1,220,348

Reissuance of Treasury stock for the exercises of employee share options		240,304			—		2,428			3			—			—			2,431
Reissuance of Treasury stock for Non-vested equity shares vested		712,330			—		(7	)		7			—			—			—
Share based compensation expense		—			—		16,810			—			—			—			16,810
Dividend declared		—			—		—			—			(62,668	)		—			(62,668	)
Net income		—			—		—			—			224,884			—			224,884
Capital injection of noncontrolling interests		—			—		39,579			—			—			—			39,579
Repurchase share from noncontrolling interest		—			—		(255	)		—			—			—			(255	)
Equity restructuring of Xuncheng		—			—		23,214			—			(23,214	)		—			—
Foreign currency translation adjustment		—			—		—			—			—			(72,193	)		(72,193	)
Unrealized gain on available-for-sale securities, net of tax effect of nil		—			—		—			—			—			35,636			35,636

Balance at May 31, 2016		157,439,397			1,584		223,422			(9	)		1,116,627			62,948			1,404,572

Condensed Financial Information of Parent Company - Statements of Cash Flows

Condensed Financial Information of Parent Company

Statements of Cash Flows

(In thousands)


	Years ended May 31,
	2014			2015			2016
	US$			US$			US$
Cash flows from operating activities:
Net income		215,704			193,013			224,884
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Equity in earnings of subsidiaries		(236,138	)		(205,974	)		(241,615	)
Dividend received from subsidiaries		83,728			—			49,984
Share-based compensation expense		20,079			15,689			16,810
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(2,958	)		(2,613	)		5,135
Accrued expenses and other current liabilities		4,988			(2,728	)		(3,673	)
Amounts due from/to related parties		(849	)		(762	)		(1,446	)

Net cash provided by (used in) operating activities		84,554			(3,375	)		50,079

Cash flows from investing activities
Investments in term deposits		—			—			(10,000	)
Payment for available-for-sale investments		(16,076	)		(10,300	)		(9,500	)
Proceed from investment withdrawn in Dajie.com		—			—			540
Loan to related parties		—			(6,423	)		1,487
Repayment from related parties		15,500			—			8,512

Net cash used in investing activities		(576	)		(16,723	)		(8,961	)

Cash flows from financing activities:
Proceeds from issuance of common shares upon exercise of share options		21,849			11,332			2,176
Loan from related party		—			75,060			8,610
Loan repayment to related party		(42,643	)		—			—
Cash paid for shares repurchase		(21,487	)		(59,420	)		—
Cash paid for dividend		(54,476	)		—			(62,668	)

Net cash (used in) provided by financing activities		(96,757	)		26,972			(51,882	)

Net (decrease) / increase in cash and cash equivalents		(12,779	)		6,874			(10,764	)
Cash and cash equivalents, beginning of year		28,653			15,874			22,748

Cash and cash equivalents, end of year		15,874			22,748			11,984

Commitments and Contingencies (Tables)

12 Months Ended

May 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Lease Payments under Non-Cancelable Operating Leases


	US$
Years ended May 31:
2017		149,265
2018		126,088
2019		98,760
2020		74,714
2021		46,702
Thereafter		51,483

		547,012

Future Minimum Capital Commitments under Non-Cancelable Construction

As of May 31, 2016, future minimum capital commitments under non-cancelable construction were as follows:


	US$
Capital commitment for the purchase of property and equipment		1,389
Capital commitment for leasehold improvements		8,038

		9,427

Noncontrolling Interests (Tables)

12 Months Ended

May 31, 2016

Noncontrolling Interest [Abstract]

Summary of Changes in Noncontrolling Interest


	Koolearn Corporation US$			Xuncheng US$			New Road US$			Jinzhou School US$			Total US$
Balance as of May 31, 2013 and 2014		—			—			—			—			—
Capital injection from noncontrolling interest shareholders		3,752			—			39			—			3,791
(Loss) attributed to noncontrolling interest shareholders		(294	)		—			(1	)		—			(295	)

Balance as of May 31, 2015		3,458			—			38			—			3,496

Capital injection from noncontrolling interest shareholders		—			28,737						182			28,919
Capital repurchase from noncontrolling interest shareholders		(3,497	)		—			—			—			(3,497	)
Unrealized gain on available-for-sale securities attributed to noncontrolling interest shareholders		—			999			—			—			999
Foreign currency translation adjustment attributed to noncontrolling interest shareholders		—			(269	)		(2	)		—			(271	)
Gain (loss) attributed to noncontrolling interest shareholders		39			423			3			(21	)		444

Balance as of May 31, 2016		—			29,890			39			161			30,090

Segment Information (Tables)

12 Months Ended

May 31, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

For the year ended May 31, 2014


	Language training and test preparation courses			Primary and secondary education			Others			Consolidated
	US$			US$			US$			US$
Net revenues		969,947			24,063			144,877			1,138,887

Operating costs and expenses:
Cost of revenues		(388,998	)		(8,488	)		(54,183	)		(451,669	)
Selling and marketing		(112,092	)		(956	)		(34,009	)		(147,057	)
General and administrative		(204,679	)		(8,748	)		(36,745	)		(250,172	)
Unallocated corporate expenses		—			—			—			(96,043	)

Total operating costs and expenses		(705,769	)		(18,192	)		(124,937	)		(944,941	)
Gain on disposal of subsidiaries		—			—			3,621			3,621

Operating income		264,178			5,871			23,561			197,567

Segment assets		709,979			65,357			245,505			1,020,841
Unallocated corporate assets		—			—			—			582,704

Total assets		709,979			65,357			245,505			1,603,545

For the year ended May 31, 2015


	Language training and test preparation courses			Primary and secondary education			Others			Consolidated
	US$			US$			US$			US$
Net revenues		1,040,380			26,735			179,651			1,246,766

Operating costs and expenses:
Cost of revenues		(442,994	)		(9,083	)		(74,243	)		(526,320	)
Selling and marketing		(122,697	)		(1,039	)		(42,540	)		(166,276	)
General and administrative		(245,315	)		(10,068	)		(49,387	)		(304,770	)
Unallocated corporate expenses		—			—			—			(95,871	)

Total operating costs and expenses		(811,006	)		(20,190	)		(166,170	)		(1,093,237	)

Operating income		229,374			6,545			13,481			153,529

Segment assets		937,020			75,046			299,442			1,311,508
Unallocated corporate assets		—			—			—			640,029

Total assets		937,020			75,046			299,442			1,951,537

For the year ended May 31, 2016


	Language training and test preparation courses			Primary and secondary education			Others			Consolidated
	US$			US$			US$			US$
Net revenues		1,238,572			30,011			209,765			1,478,348

Operating costs and expenses:
Cost of revenues		(516,370	)		(9,812	)		(88,182	)		(614,364	)
Selling and marketing		(125,815	)		(744	)		(48,255	)		(174,814	)
General and administrative		(296,686	)		(12,558	)		(55,937	)		(365,181	)
Unallocated corporate expenses		—			—			—			(128,912	)

Total operating costs and expenses		(938,871	)		(23,114	)		(192,374	)		(1,283,271	)

Gain on disposal of subsidiaries		—			—			3,760			3,760
Operating income		299,701			6,897			21,151			198,837

Segment assets		1,120,580			78,556			411,744			1,610,880
Unallocated corporate assets		—			—			—			743,954

Total assets		1,120,580			78,556			411,744			2,354,834

Organization and Principal Activities - Additional Information (Detail) - Agreement	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Product Information [Line Items]
Renewal of trade mark registration	10 years
Exclusive service agreement renewal term	10 years
Notice period of agreement termination	30 days
Number of new equity pledged agreements	5
Century Friendship [Member] \| Previously Held Equity Interest [Member]
Product Information [Line Items]
Equity interest of Century Friendship prior to the transfer	53.00%
Minimum [Member]
Product Information [Line Items]
Operating services fee percentage from revenue	2.00%
Maximum [Member]
Product Information [Line Items]
Operating services fee percentage from revenue	6.00%
Variable interest entities (VIEs) [Member]
Product Information [Line Items]
Shareholding percentage of Mr. Yu	15.10%
Credit Concentration Risk [Member] \| Sales Revenue, Net [Member]
Product Information [Line Items]
Concentration risk percentage	97.70%	97.90%	98.40%
Credit Concentration Risk [Member] \| Assets, Total [Member]
Product Information [Line Items]
Concentration risk percentage	69.80%	64.80%
Credit Concentration Risk [Member] \| Liabilities, Total [Member]
Product Information [Line Items]
Concentration risk percentage	93.70%	92.70%

Organization and Principal Activities - Balances and Amounts of Company's WFOEs and VIEs (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Variable Interest Entities [Line Items]
Total current assets	$ 1,869,336	$ 1,348,880
Total assets	2,354,834	1,951,537	$ 1,603,545
Total current liabilities	918,190	725,232
Total liabilities	920,172	727,693
Net revenues	1,478,348	1,246,766	1,138,887
Net income	224,884	193,013	215,704
Net cash provided by operating activities	517,894	374,145	361,345
Net cash used in investing activities	(309,737)	(173,417)	(344,377)
Net cash provided by financing activities	5,503	(44,297)	(54,114)
Variable interest entities (VIEs) [Member]
Variable Interest Entities [Line Items]
Total current assets	1,262,811	753,306
Total non-current assets	381,262	511,051
Total assets	1,644,073	1,264,357
Total current liabilities	860,877	673,201
Total non-current liabilities	1,432	1,600
Total liabilities	862,309	674,801
Net revenues	1,443,851	1,221,101	1,121,205
Net income	313,828	265,485	266,497
Net cash provided by operating activities	450,848	357,893	371,458
Net cash used in investing activities	(286,235)	$ (167,847)	$ (240,427)
Net cash provided by financing activities	$ 69,747

Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015
Receivables [Abstract]
Beginning balance	$ 801	$ 265
Charge during the year	235	676
Written-off	(628)	(140)
Ending balance	$ 408	$ 801

Significant Accounting Policies - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Significant Of Accounting Policies [Line Items]
Impairment loss on goodwill	$ 0	$ 0	$ 0
Impairment losses	$ 0	2,000	0
Percentage of ownership interest in voting stock considered to exist significant influence over investee company	50.00%
Business tax and VAT	$ 52,993,000	45,664,000	39,909,000
Total advertising expenses	39,753,000	38,295,000	41,952,000
Government subsidies received	494,000	1,230,000	1,437,000
Aggregate amounts denominated in RMB	747,762,000	512,887,000
Amount transfer from level 1 to level 2	0
Amount transfer from level 1 to level 2	0
Impairment loss related to investments, goodwill and intangible assets	$ 0	$ 2,000	$ 0
Minimum [Member]
Significant Of Accounting Policies [Line Items]
Percentage of ownership interest in voting stock considered to exist significant influence over investee company	20.00%
Maximum [Member]
Significant Of Accounting Policies [Line Items]
Percentage of ownership interest in voting stock considered to exist significant influence over investee company	50.00%
Available-for-sale securities
Significant Of Accounting Policies [Line Items]
Transfer from level 2 fair value measurements	$ 63,881,000
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member]
Significant Of Accounting Policies [Line Items]
Concentration risk	10.00%	10.00%	10.00%
Credit Concentration Risk [Member] \| Sales Revenue, Net [Member]
Significant Of Accounting Policies [Line Items]
Concentration risk	97.70%	97.90%	98.40%
Credit Concentration Risk [Member] \| Accounts Receivable [Member]
Significant Of Accounting Policies [Line Items]
Concentration risk	10.00%	10.00%	10.00%
Land use rights [Member] \| Minimum [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	38 years 6 months
Land use rights [Member] \| Maximum [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	50 years

Significant Accounting Policies - Estimated Useful Lives of Assets (Detail)	12 Months Ended
	May 31, 2016
Transportation equipment [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	10 years
Furniture and education equipment [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	5 years
Computer equipment and software [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	3 years
Leasehold Improvements [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	Shorter of the lease term or estimated economic life
Minimum [Member] \| Buildings [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	20 years
Maximum [Member] \| Buildings [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	50 years

Significant Accounting Policies - Schedule of Available-for-Sale Securities Included in Long Term Investments Measured and Recorded at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	$ 163,804	$ 67,107
Common Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	15,945	16,950
Redeemable Preferred Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	112,136	50,157
Convertible Bond [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	12,310
Asset Management Plan and Trust [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	23,413
Quoted Prices in Active Market for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	15,945	16,950
Quoted Prices in Active Market for Identical Assets Level 1 [Member] \| Common Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	15,945	16,950
Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	77,986	50,157
Significant Other Observable Inputs Level 2 [Member] \| Redeemable Preferred Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	42,263	$ 50,157
Significant Other Observable Inputs Level 2 [Member] \| Convertible Bond [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	12,310
Significant Other Observable Inputs Level 2 [Member] \| Asset Management Plan and Trust [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	23,413
Significant Other Observable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	69,873
Significant Other Observable Inputs Level 3 [Member] \| Redeemable Preferred Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	$ 69,873

Reconciliation of The Fair Value Measurements of Assets And Liabilities Using Significant Unobservable Inputs (level 3) (Detail) - Available-for-sale securities $ in Thousands	12 Months Ended
	May 31, 2016 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at June 1, 2015	$ 0
Transfer from level 2 fair value measurements	63,881
Initial recognition	2,844
Unrealized gain	3,148
Balance at May 31, 2016	$ 69,873

Business Acquisition - Additional Information (Detail) - USD ($) $ in Thousands			12 Months Ended
	Dec. 01, 2014	Sep. 01, 2012	May 31, 2016
China Management Software Institute [Member]
Business Acquisition [Line Items]
Business acquisition, date			Sep. 01, 2012
Business acquisition, equity interest		100.00%
Business acquisition, total consideration		$ 18,000
Business acquisition, present value of consideration		$ 17,455
Qingdao Alice [Member]
Business Acquisition [Line Items]
Business acquisition, date			Dec. 01, 2014
Business acquisition, equity interest	100.00%
Business acquisition, total consideration	$ 12,929
Business acquisition, present value of consideration	$ 12,929

Business Acquisition - Purchase Price Allocation (Detail) - USD ($) $ in Thousands			12 Months Ended
	Dec. 01, 2014	Sep. 01, 2012	May 31, 2016	May 31, 2015
Business Acquisition [Line Items]
Goodwill			$ 10,545	$ 11,194
Buildings [Member] \| Minimum [Member]
Business Acquisition [Line Items]
Amortization period			20 years
Buildings [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Amortization period			50 years
China Management Software Institute [Member]
Business Acquisition [Line Items]
Cash		$ 68
Other current assets		14
Buildings		16,095
Property, plant and equipment		103
Land use right		1,008
Goodwill		1,829
Other current liabilities		(45)
Deferred tax liabilities		(1,727)
Total		$ 17,455
China Management Software Institute [Member] \| Land use rights [Member]
Business Acquisition [Line Items]
Amortization period		38 years 6 months
China Management Software Institute [Member] \| Student base [Member]
Business Acquisition [Line Items]
Intangible assets		$ 110
Amortization period		1 year 9 months
China Management Software Institute [Member] \| Buildings [Member] \| Minimum [Member]
Business Acquisition [Line Items]
Amortization period		23 years 3 months 18 days
China Management Software Institute [Member] \| Buildings [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Amortization period		45 years 3 months 18 days
China Management Software Institute [Member] \| Property, Plant and Equipment [Member] \| Minimum [Member]
Business Acquisition [Line Items]
Amortization period		1 year
China Management Software Institute [Member] \| Property, Plant and Equipment [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Amortization period		5 years
Qingdao Alice [Member]
Business Acquisition [Line Items]
Cash	$ 2,306
Other current assets	644
Property, plant and equipment	89
Goodwill	7,540
Other current liabilities	(514)
Deferred tax liabilities	(955)
Total	12,929
Qingdao Alice [Member] \| Trademark [Member]
Business Acquisition [Line Items]
Intangible assets	$ 1,058
Amortization period	10 years 1 month 6 days
Qingdao Alice [Member] \| Student base [Member]
Business Acquisition [Line Items]
Intangible assets	$ 1,998
Amortization period	2 years 2 months 12 days
Qingdao Alice [Member] \| Favorable lease [Member]
Business Acquisition [Line Items]
Intangible assets	$ 763
Amortization period	8 years 8 months 12 days
Qingdao Alice [Member] \| Property, Plant and Equipment [Member] \| Minimum [Member]
Business Acquisition [Line Items]
Amortization period	1 year
Qingdao Alice [Member] \| Property, Plant and Equipment [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Amortization period	5 years

Disposal of Subsidiaries - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended			12 Months Ended
	Apr. 30, 2016	May 31, 2014	Mar. 31, 2014	May 31, 2016	May 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on disposal of subsidiaries				$ 3,760	$ 3,621
Equity ownership interest				50.00%
Boost Caring [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of equity interest sold			100.00%
Proceeds from disposal of subsidiaries				$ 1,496
MaxEn [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of equity interest sold			65.00%
Cash consideration			$ 1,560
Gain on disposal of subsidiaries					3,254
North Star [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of equity interest sold		100.00%
Cash consideration		$ 364			364
Gain on disposal of subsidiaries					$ 367
Dianshijingwei [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of equity interest sold	51.00%
Cash consideration	$ 2,325
Gain on disposal of subsidiaries				3,760
Proceeds from disposal of subsidiaries				$ 1,520
Equity ownership interest				49.00%

Short-Term Investments - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Short-term Investments [Abstract]
Held-to-maturity investments for OTTI recognized	$ 0	$ 0	$ 0
Minimum [Member]
Short-term Investments [Abstract]
Short-term investments stated interest rate	2.60%
Maximum [Member]
Short-term Investments [Abstract]
Short-term investments stated interest rate	7.00%

Short-Term Investments - Summary of Short-Term Investments (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Short-term Investments [Abstract]
Held-to-maturity investments	$ 819,229	$ 599,935

Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Inventory Disclosure [Abstract]
Course materials in schools	$ 5,787	$ 7,383
Publications in bookstores	21,516	16,600
Inventory	$ 27,303	$ 23,983

Inventory - Additional Information (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Inventory Disclosure [Abstract]
Inventory marked down value	$ 638	$ 513

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

May 31, 2016

May 31, 2015

Prepaid Expenses And Other Current Assets [Abstract]

Prepaid rent

$ 33,135

$ 35,973

Advances to suppliers

23,143

19,134

Interest receivable

9,341

6,490

Rental deposit

7,122

3,370

Receivable from the settlement bank for the proceeds of exercise of options and withholding tax

5,548

7,636

Prepaid advertising fees

3,250

3,652

Staff advances

^[1]

2,829

4,589

Value added taxes recoverable

2,534

1,979

Deposit of advertising & decoration

1,961

1,255

Receivable of social insurance

1,374

1,127

Prepaid property taxes and other taxes

616

830

Others

^[2]

8,824

11,798

Prepaid expenses and other current assets

$ 99,677

$ 97,833

[1]	Staff advances were provided to staff for traveling and related use which are expensed as incurred and staff allowance for on-site enrollment activities.
[2]	Others primarily included maintenance fees, other receivables and other miscellaneous prepayments.

Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Intangible assets with indefinite lives:
Intangible assets with indefinite lives, Gross	$ 248	$ 264
Intangible assets with finite lives:
Intangible assets, gross	4,694	4,952
Accumulated amortization:
Accumulated amortization	(2,076)	(1,033)
Intangible assets with indefinite lives, Net	248	264
Intangible assets	2,618	3,919
Trademark [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	1,293	1,081
Accumulated amortization:
Accumulated amortization	(383)	(256)
Intangible assets with definite lives, Net	910	825
Courseware [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	47	50
Accumulated amortization:
Accumulated amortization	(47)	(50)
Student base [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	1,978	2,093
Accumulated amortization:
Accumulated amortization	(1,404)	(569)
Intangible assets with definite lives, Net	574	1,524
Favorable lease [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	713	1,049
Accumulated amortization:
Accumulated amortization	(123)	(60)
Intangible assets with definite lives, Net	590	989
License [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	415	415
Accumulated amortization:
Accumulated amortization	(119)	(98)
Intangible assets with definite lives, Net	$ 296	$ 317

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expenses	$ 1,122	$ 607	$ 113
Future amortization expense next twelve months	806
Future amortization expense year two	231
Future amortization expense year three	209
Future amortization expense year four	201
Future amortization expense year five	201
Future amortization expense thereafter	$ 722

Goodwill - Components of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015
Costs:
Beginning balance	$ 11,194	$ 3,692
Exchange differences	(649)	(38)
Ending balance	10,545	11,194
Accumulated goodwill impairment loss:
Beginning balance	0	0
Ending balance	0	0
Goodwill, net	$ 10,545	11,194
Qingdao Alice Kindergarten [Member]
Costs:
Acquisition		$ 7,540

Property and Equipment - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 441,508	$ 415,494
Less: accumulated depreciation	(209,937)	(186,612)
Construction in-process	6,127	2,581
Property and equipment, Net	237,698	231,463
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	146,411	145,159
Transportation equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,553	8,084
Furniture and education equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	76,492	72,820
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	40,707	36,502
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 169,345	$ 152,929

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 47,281	$ 46,663	$ 43,578

Land Use Rights - Land Use Rights, Net (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Real Estate [Abstract]
Land use rights	$ 5,178	$ 5,497
Less: accumulated amortization	(1,201)	(1,089)
Exchange differences	(71)	(146)
Land use rights, net	$ 3,906	$ 4,262

Land Use Rights - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Land Use Rights [Line Items]
Amortization expenses of land use rights	$ 112	$ 116	$ 117
Future amortization expense next twelve months	806
Future amortization expense year two	231
Future amortization expense year three	209
Future amortization expense year four	201
Future amortization expense year five	201
Future amortization expense thereafter	722
Land use rights [Member]
Land Use Rights [Line Items]
Future amortization expense next twelve months	109
Future amortization expense year two	109
Future amortization expense year three	109
Future amortization expense year four	109
Future amortization expense year five	109
Future amortization expense thereafter	$ 3,361

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

May 31, 2016

Nov. 30, 2015

Oct. 31, 2015

Jul. 31, 2015

May 31, 2015

Apr. 30, 2015

Sep. 30, 2014

Jun. 30, 2014

Apr. 30, 2014

Mar. 31, 2014

Mar. 05, 2012

Schedule of Equity Method Investments [Line Items]

Held-to-maturity investments [Member]

$ 178,863

$ 325,991

Schedule of Equity Method Investments [Line Items]

Dajie.com Ltd [Member] | Cost-method Investments [Member]

247,480

^[1]

$ 64,537

$ 80,671

$ 96,805

Schedule of Equity Method Investments [Line Items]

Dongfangheli [Member] | Equity Method Investments [Member]

^[2]

1,460

2,000

Schedule of Equity Method Investments [Line Items]

Zhishang Education [Member] | Equity Method Investments [Member]

^[3]

3,451

3,967

Schedule of Equity Method Investments [Line Items]

Juesheng.com [Member] | Equity Method Investments [Member]

^[4]

1,164

2,313

Schedule of Equity Method Investments [Line Items]

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

^[5]

3,249

Schedule of Equity Method Investments [Line Items]

Kouyu 100 [Member] | Equity Method Investments [Member]

^[5]

7,440

Schedule of Equity Method Investments [Line Items]

Other Joint Ventures [Member] | Equity Method Investments [Member]

^[6]

3,261

Schedule of Equity Method Investments [Line Items]

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

2,474

3,124

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

^[7]

34,242

3,398

Alo7.com [Member]

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

$ 10,000

$ 300

$ 2,576

$ 1,000

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

^[8]

29,639

27,935

Trust 556 [Member]

Trust 556 [Member] | Available for sale securities investments [Member]

$ 15,654

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

^[9]

16,037

Tarena [Member]

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

$ 13,500

Schedule of Equity Method Investments [Line Items]

Shangjiachongye | Available for sale securities investments [Member]

^[10]

15,945

16,950

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

^[11]

12,310

ROBOROBO [Member]

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

$ 4,356

Schedule of Equity Method Investments [Line Items]

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

^[12]

9,999

4,356

Schedule of Equity Method Investments [Line Items]

Assets management plan | Available for sale securities investments [Member]

^[13]

8,500

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

^[14]

7,376

STEMedu.cn [Member]

STEMedu.cn [Member] | Available for sale securities investments [Member]

$ 2,844

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

^[15]

5,992

TangFeng

TangFeng | Available for sale securities investments [Member]

$ 1,831

Schedule of Equity Method Investments [Line Items]

Other investments [Member]

^[16]

5,980

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

$ 17,784

$ 7,028

[1]	The Group's long-term held-to-maturity investments consist of trusts guaranteed by banks with the maturity more than one year, which are stated at their amortized cost. The trusts were invested in April, June and September 2014 with the amounts of US$96,805, US$80,671 and US$64,537, respectively, and interest income of US$1,404 and US$20,882 and US$20,771 was recognized in the consolidated statements of operations for the years ended May 31, 2014, 2015 and 2016, respectively. As of May 31, 2016, US$118,816 of the held-to-maturity investments were reclassified to long-term investments due within one year.
[2]	In September 2011, the Group signed a share subscription agreement to invest US$2,000 for 5% equity ownership interest in Dajie.com. The fair value of Dajie.com's equity ownership interest was not readily determinable and the Group did not have the ability to exercise significant influence over the operating and financial policies of Dajie.com. Accordingly, the investment in Dajie.com was accounted for as a cost-method investment. In March 2016, the Company disposed part of equity ownership interest for US$540 and reinvested into Dajie.com's VIE. The new investment was classified as available-for-sale security as the Company determined that the shares were debt security due to the redemption option available to the investee and accordingly measured the investment at fair value.
[3]	In August 2014, the Group invested US$4,034 to acquire 50% equity interest in Dongfangheli, a company concentrating on investment in educational research and development programs and software, consulting services. The Group used the equity method to account for the investment, because the Group has the ability to exercise significant influence but does not have control over the investee.
[4]	In July 2014, the Group invested US$2,662 to acquire 55% equity interest in Zhishang Education, an online professional educational training platform. The Group has concluded that it does not have control over Zhishang Education because other investors have significant participating rights, but determined that it has the ability to exercise significant influence. Therefore the Group used the equity method to account for the investment.
[5]	In August 2014 and May 2015, the Group invested US$3,006 and US$501 respectively in Juesheng.com, a company engaging in providing international educational products search engine service, for 11.88% equity interests. These investments were classified as available-for-sale securities as the Company determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gain of US$3,933 was reported in other comprehensive income for the year ended May 31, 2015. In March 2016, Juesheng.com successfully listed on the National Equities Exchange and Quotations ("NEEQ"). Upon the listing, the Group's preference rights, including its redemption and liquidation preference were terminated and the shares became in-substance common shares. As the share conversion is not considered an earnings realization event, all unrealized gains deferred in accumulated other comprehensive income were reversed to the carrying amount of the common shares such that the initial carrying amount of such shares is equal to the original cost basis of the original investment. The Group further accounted for its investment in common share using the equity method as the Group determined that it can exercise significant influence over Juesheng.com.
[6]	In December 2014, the Group invested US$3,472 in Kouyu100, a company applying cutting edge psychoacoustic technology to spoken language training and correcting the pronunciation of a student like a real tutor, for 7% equity interest. The investment was classified as available-for-sale security as the Company determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized gain of nil was reported in other comprehensive income for the year ended May 31, 2015. In December 2015, Kouyu100 successfully listed on the NEEQ. Upon the listing, the Group's preference rights, including redemption and liquidation preference were terminated and the shares became in-substance common shares. As the share conversion is not considered an earnings realization event, all unrealized gains deferred in accumulated other comprehensive income were reversed to the carrying amount of the common shares such that the initial carrying amount of such shares is equal to the original cost basis of the original investment. The Group further accounted for its investment in common share using the equity method as the Group determined that it can exercise significant influence over Kouyu100.
[7]	In April and November 2015, the Group invested US$3,398 and US$11,437 respectively in Golden Finance, a company focusing on training programs associated with finance and business management, for 19.5% equity interest. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gains of nil and US$19,407 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively.
[8]	On March 5, 2012, the Group acquired a convertible promissory from Alo7.com for US$1,000, which entitled the Group to automatically convert the note into equity security. On July 1, 2012, the Group converted the US$1,000 promissory note into convertible redeemable preferred shares and warrants issued by Alo7.com, for 3.4% equity ownership interest in Alo7.com on an as-converted basis. In March, June and September 2014, the Group further invested US$2,576, US$300 and US$10,000 into Alo7.com for convertible and redeemable preferred shares. These investments were classified as available-for-sale securities as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. As of May 31, 2016, the Company had 17.16% equity interests in Alo7.com on an as-converted basis. Unrealized holding gains of US$631, US$13,428 and US$1,704 were reported in other comprehensive income for the years ended May 31, 2014, 2015 and 2016, respectively.
[9]	In October 2015, the Group invested US$15,654 in a two-year trust named Trust 556 with an expected annualized interest rate of 8.5%. The principal and the interest are not guaranteed during the Group's holding period and will be paid upon maturity. The investment was classified as available-for-sale long-term investment as the Group determined that the shares were debt securities and unrealized holding gains of US$383 was reported in other comprehensive income for the year ended May 31, 2016.
[10]	In March 2014, the Group invested US$13,500 in Tarena, which is a service provider of IT professional education in China, for 2.96% ownership. This investment was classified as available-for-sale securities as Tarena is a NASDAQ listed company and the Group measured the investment subsequently at fair value. Unrealized holding loss of US$45, gain of US$3,495 and loss of US$1,005 were reported in other comprehensive income for the years ended May 31, 2014, 2015 and 2016, respectively.
[11]	In January 2016, the Group invested US$12,310 to acquire convertible bond issued by Shangjiachongye, which focuses on online education specific to vocational qualification training. The investment was classified as available-for-sale security and measured at fair value. As there was no operation change or significant transaction occurred since the transaction date, the initial purchase price was considered the fair value of this investment as of May 31, 2016.
[12]	In April 2015, the Group acquired 18% equity interest in ROBOROBO for a cash consideration of US$4,356, a company applying various robots build training courses for kids with different ages. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gains of nil and US$5,643 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively.
[13]	In September 2015, the Group invested US$8,500 to acquire 48,796,296 shares of Series B-1 convertible redeemable preferred shares for an 8.5% equity interests of Lele. Lele provides online learning and tutoring services for students from kindergarten through 12th grade. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. No unrealized holding gain or loss was reported in other comprehensive income for the year ended May 31, 2016 as the Group determined that there was no operation changes or significant transactions at the investee between the investment date and May 31, 2016.
[14]	In August 2015, the Group invested US$7,315 in an Assets management plan with a maturity of five years. The investment is managed together with another similar investment held by Mr. Yu and some other employees in the Group. The investment was classified as available-for-sale security as the Group determined that the investment was a debt security and measured the investment subsequently at fair value. Unrealized holding gains of US$61 was reported in other comprehensive income for the year ended May 31, 2016.
[15]	In July 2015, the Group invested US$2,844 to acquire 36% equity interest in STEMedu.cn, a company engaging in the business of providing service of education training. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gain of US$3,148 was reported in other comprehensive income for the year ended May 31, 2016.
[16]	In November 2015, the Group entered into an investment agreement with Tangfeng which engages in the business of Chinese training to acquire 6% equity interest with a total cash consideration of US$1,831. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gain of US$4,149 was reported in other comprehensive income for the year ended May 31, 2016.

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

1 Months Ended

12 Months Ended

Mar. 31, 2016

Nov. 30, 2015

Oct. 31, 2015

Aug. 31, 2015

May 31, 2015

Apr. 30, 2015

Dec. 31, 2014

Mar. 31, 2014

Sep. 30, 2011

May 31, 2016

May 31, 2015

May 31, 2014

Jan. 31, 2016

Sep. 30, 2015

Jul. 31, 2015

Sep. 30, 2014

Aug. 31, 2014

Jul. 31, 2014

Jun. 30, 2014

Apr. 30, 2014

Jul. 01, 2012

Mar. 05, 2012

Proceed from disposal of Dajie.com

$ (540)

50.00%

Long term investment due within one year

$ 325,991

$ 178,863

$ 325,991

Interest income

66,861

66,605

$ 44,880

118,816

Dajie.com Ltd [Member]

Schedule of Equity Method Investments [Line Items]

Investment in subscription agreement

$ 2,000

Equity share in subscription agreement

5.00%

Proceed from disposal of Dajie.com

$ 540

Dongfangheli [Member]

Schedule of Equity Method Investments [Line Items]

Investment for acquiring equity interest

$ 4,034

Schedule of Equity Method Investments [Line Items]

50.00%

Juesheng.com [Member]

Investment for acquiring equity interest

$ 501

501

$ 3,006

Equity ownership interest classified as available for sale

11.88%

Schedule of Equity Method Investments [Line Items]

3,933

Kouyu 100 [Member]

Schedule of Equity Method Investments [Line Items]

7.00%

Cash consideration

$ 3,472

Golden Finance [Member]

19,407

Cash consideration

$ 11,437

$ 3,398

Schedule of Equity Method Investments [Line Items]

19.50%

Alo7.com [Member]

$ 1,704

13,428

631

17.16%

Noncontrolling interest, equity ownership percentage

$ 2,576

$ 10,000

$ 300

$ 1,000

3.40%

Trust 556 [Member]

Schedule of Equity Method Investments [Line Items]

$ 383

Schedule of Equity Method Investments [Line Items]

$ 15,654

Investment interest rate

8.50%

Tarena [Member]

Equity ownership interest classified as available for sale

2.96%

(1,005)

3,495

(45)

Schedule of Equity Method Investments [Line Items]

$ 13,500

ROBOROBO [Member]

5,643

18.00%

Schedule of Equity Method Investments [Line Items]

$ 4,356

STEMedu.cn [Member]

3,148

36.00%

Schedule of Equity Method Investments [Line Items]

$ 2,844

TangFeng

4,149

6.00%

Convertible Bond [Member] | Shangjiachongye

$ 1,831

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

$ 12,310

Assets management plan

$ 61

Maturity period of long term investment

$ 7,315

5 years

Held-to-maturity investments [Member]

Schedule of Equity Method Investments [Line Items]

Long-term debt maturity period

$ 247,480

^[1]

247,480

^[1]

$ 64,537

$ 80,671

$ 96,805

1 year

Interest income

$ 20,771

$ 20,882

$ 1,404

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

Schedule of Equity Method Investments [Line Items]

8.50%

Convertible redeemable preferred shares acquired

$ 8,500

48,796,296

Zhishang Education [Member]

Schedule of Equity Method Investments [Line Items]

Investment for acquiring equity interest

$ 2,662

Noncontrolling interest, ownership percentage by parent

55.00%

[1]

The Group's long-term held-to-maturity investments consist of trusts guaranteed by banks with the maturity more than one year, which are stated at their amortized cost. The trusts were invested in April, June and September 2014 with the amounts of US$96,805, US$80,671 and US$64,537, respectively, and interest income of US$1,404 and US$20,882 and US$20,771 was recognized in the consolidated statements of operations for the years ended May 31, 2014, 2015 and 2016, respectively. As of May 31, 2016, US$118,816 of the held-to-maturity investments were reclassified to long-term investments due within one year.

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

May 31, 2016

May 31, 2015

May 31, 2014

Schedule Of Other Liabilities [Line Items]

Accrued payroll

$ 131,151

$ 103,270

Payable for purchase of property and equipment

11,953

7,433

Amounts reimbursable to employees

^[1]

8,294

5,418

Individual taxes withholding

8,186

8,148

Refundable fees received from students

^[2]

5,755

10,023

Business taxes payable

5,259

9,701

Value added taxes payable

6,506

1,147

Accrued advertising fees

6,443

8,210

Rent payable

6,285

3,883

Welfare payable

6,004

6,213

Royalty fees payable

^[3]

3,637

2,565

Refundable deposit

^[4]

3,161

1,956

Accrued professional service fees

2,352

1,683

Other taxes payable

1,240

1,887

Investment payable

$ 4,594

Others

^[5]

10,818

5,814

Total

$ 217,044

178,803

ROBOROBO [Member]

Schedule Of Other Liabilities [Line Items]

Investment payable

^[6]

$ 1,452

[1]	Amounts reimbursable to employees included traveling and the related expenses incurred by employees on behalf of the Group.
[2]	Refundable fees received from students represent (1) the miscellaneous expenses other than tuition fee received from students which will be paid out on behalf of students; and (2) tuition fees refundable to students for withdrawn classes.
[3]	Royalty fees payable related to payments to content providers for on-line learning programs and those to counterparties for copyright and resource sharing.
[4]	Refundable deposits represent student deposits for dormitory or other fees that will be refunded upon graduation and student security deposits refunded upon completion of the study tour.
[5]	Others primarily included transportation expenses, utility fees, property management fees, and other miscellaneous expenses payable.
[6]	The balance as of May 31, 2015 represents a payable for an available-for-sale investment in ROBOROBO, which was fully paid in July 2015.

Share-Based Compensation - Additional Information (Detail) - USD ($)		1 Months Ended										12 Months Ended
	May 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Feb. 28, 2015	Sep. 30, 2014	Jul. 31, 2014	Jul. 31, 2013	May 31, 2013	Jul. 31, 2012	Jun. 30, 2011	May 31, 2010	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013	Jan. 01, 2008	Jan. 01, 2007	Jan. 20, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase shares																		8,000,000
Incremental common shares for grant																5,000,000	5,000,000
Common shares to add on the first business day from 2009													3,000,000
Minimum percentage of shares to be added from 2009													2.00%
Additional shares granted													2,000,000
Number of shares repurchased from open market													2,800,849	762,100	1,683,400
Treasury shares remain for future issuance	939,990											939,990
Share-based compensation												$ 16,810,000	$ 15,689,000	$ 20,079,000
Minimum percentage for exercise price of option	100.00%											100.00%
Common shares issued to employees and non-employees upon the exercise of their share options	11,285,510											11,285,510
Reissuance of treasury stock for the exercises of employee share options												2,208,545
Common shares transferred to be issued to employees and non employees upon the exercise of their vested share options and vesting of non-vesting equity shares												5,246,349
New share options granted												0	0	0
Value of options exercised												$ 4,802,000	$ 5,249,000	$ 34,578,000
Unrecognized compensation expense	$ 0											$ 0
Common shares issued to employees upon the vesting of their shares	4,714,490											4,714,490
Reissuance of treasury stock for Non-vested equity shares vested												2,097,814
Weighted-average grant date fair value, Granted												$ 22.66	$ 19.26	$ 22.80
Total fair value of shares vested												$ 15,235,000
May 2010 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees											556,848
Granted shares vested date													Jun. 30, 2015
June 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees										811,020
Granted shares vested date													May 31, 2014
July 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees									1,956,935
Granted shares vested date													May 31, 2015
May 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees								208,590
Granted shares vested date													May 31, 2014
July 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees							19,830
Granted shares vested date													May 31, 2014
July 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees						209,650
Granted shares vested date													May 31, 2015
September 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees					24,020
Granted shares vested date													May 31, 2015
February 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees				600,000
February 2015 [Member] \| Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees													240,000
Granted shares vested date													Dec. 31, 2015
February 2015 [Member] \| Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees													180,000
Granted shares vested date													Dec. 31, 2016
February 2015 [Member] \| Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees													180,000
Granted shares vested date													Dec. 31, 2017
July 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees			486,330
Granted shares vested date												May 31, 2016
October Two Thousand Fifteen Grant One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees		60,000
October Two Thousand Fifteen Grant One [Member] \| Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees												20,000
Granted shares vested date												May 31, 2016
October Two Thousand Fifteen Grant One [Member] \| Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees												20,000
Granted shares vested date												Dec. 31, 2016
October Two Thousand Fifteen Grant One [Member] \| Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees												20,000
Granted shares vested date												Dec. 31, 2017
Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share transfer	16,000,000											16,000,000
Total unrecognized compensation cost related to NES	$ 3,388,000											$ 3,388,000
Weighted-average period of recognition												1 year 2 months 19 days
Non-Vested Equity Shares [Member] \| May 2010 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted												$ 21.75
Non-Vested Equity Shares [Member] \| June 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted												25.11
Non-Vested Equity Shares [Member] \| July 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted												12.19
Non-Vested Equity Shares [Member] \| May 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted												20.33
Non-Vested Equity Shares [Member] \| July 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted												22.80
Non-Vested Equity Shares [Member] \| July 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted												21.01
Non-Vested Equity Shares [Member] \| September 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted												22.32
Non-Vested Equity Shares [Member] \| February 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted												18.52
Non-Vested Equity Shares [Member] \| July 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted												$ 22.69
2016 Share Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum aggregate number of shares which may be issued	10,000,000											10,000,000
New share options granted	0

Share-Based Compensation - Summary of Share Options Granted and NES (Detail) - $ / shares	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	0	0	0
Fair value of common shares	$ 22.66	$ 19.26	$ 22.80
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	15,826,000
Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	8,608,671
February 2006 [Member] \| Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	7,099,500
Fair value of common shares	$ 1.00
Exercise price	$ 2.02
July 2006 [Member] \| Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	1,620,000
Fair value of common shares	$ 1.15
Exercise price	$ 2.38
September 2006 [Member] \| Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	100,000
Fair value of common shares	$ 2.38
Exercise price	$ 3.75
March 2007 [Member] \| Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	3,946,500
Fair value of common shares	$ 4.09
Exercise price	$ 8.75
January 2012 [Member] \| Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	3,060,000
Fair value of common shares	$ 10.33
Exercise price	$ 12.19
January 2008 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	2,720,000
Fair value of common shares	$ 12.75
Intrinsic value	$ 12.75
March 2008 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	152,000
Fair value of common shares	$ 14.00
Intrinsic value	$ 14.00
July 2008 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	278,500
Fair value of common shares	$ 13.75
Intrinsic value	$ 13.75
October 2008 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	3,200
Fair value of common shares	$ 12.65
Intrinsic value	$ 12.65
May 2009 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	205,548
Fair value of common shares	$ 12.75
Intrinsic value	$ 12.75
June 2009 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	316,200
Fair value of common shares	$ 15.13
Intrinsic value	$ 15.13
May 2010 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	556,848
Fair value of common shares	$ 21.75
Intrinsic value	$ 21.75
June 2011 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	811,020
Fair value of common shares	$ 25.11
Intrinsic value	$ 25.11
July 2012 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	1,956,935
Fair value of common shares	$ 12.19
Intrinsic value	$ 12.19
May 2013 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	208,590
Fair value of common shares	$ 20.33
Intrinsic value	$ 20.33
July 2013 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	19,830
Fair value of common shares	$ 22.80
Intrinsic value	$ 22.80
July 2014 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	209,650
Fair value of common shares	$ 21.01
Intrinsic value	$ 21.01
September 2014 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	24,020
Fair value of common shares	$ 22.32
Intrinsic value	$ 22.32
February 2015 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	600,000
Fair value of common shares	$ 18.52
Intrinsic value	$ 18.52
July 2015 \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	486,330
Fair value of common shares	$ 22.69
Intrinsic value	$ 22.69
October 2015 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	60,000
Fair value of common shares	$ 22.45
Intrinsic value	$ 22.45

Share-Based Compensation - Summary of Share Options Activity under 2006 Share Incentive Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted number of options, Granted	0	0	0
2006 Share Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted number of options outstanding, Beginning balance	318,641	1,272,155	3,637,249
Weighted number of options, Granted	0	0	0
Weighted number of options, Exercised	(240,304)	(953,514)	(2,113,094)
Weighted number of options, Forfeited			(252,000)
Weighted number of options outstanding, Ending balance	78,337	318,641	1,272,155	3,637,249
Weighted average exercise prices, Options outstanding, Beginning balance	$ 5.30	$ 10.18	$ 9.27
Weighted number of options vested and expect to vest at May 31, 2016	78,337
Weighted average exercise prices, Granted	$ 0	0	0
Weighted number of options exercisable at May 31, 2016	78,337
Weighted average exercise prices, Exercised	$ 5.03	11.81	8.37
Weighted average exercise prices, Forfeited			12.19
Weighted average exercise prices, Options outstanding, Ending balance	6.13	$ 5.30	$ 10.18	$ 9.27
Weighted average exercise prices, Options vested and expect to vest at May 31, 2016	$ 6.13
Aggregate intrinsic value, Options outstanding, beginning balance	$ 5,903	$ 19,898		$ 47,503
Weighted average exercise prices, Options exercisable at May 31, 2016	$ 6.13
Remaining contractual life, Options outstanding	6 months 29 days	1 year 11 months 1 day	6 years 2 months 12 days	6 years 4 months 21 days
Remaining contractual life, Options vested and expect to vest	6 months 29 days
Remaining contractual life, Options exercisable	6 months 29 days
Aggregate intrinsic value, Options outstanding, ending balance	$ 2,829	$ 5,903	$ 19,898
Aggregate intrinsic value, Options vested and expect to vest at May 31, 2016	2,829
Aggregate intrinsic value, Options exercisable at May 31, 2016	$ 2,829

Share-Based Compensation - Summary of NES Activities under 2006 Share Incentive Plan (Detail) - $ / shares	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Weighted-average grant date fair value, Granted	$ 22.66	$ 19.26	$ 22.80
2006 Share Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of NES, Beginning balance	606,400	619,930	1,510,970
Number of NES, Granted	546,330	833,670	19,830
Number of NES, Vested	(712,330)	(575,432)	(810,052)
Number of NES, Forfeited	(40,400)	(271,768)	(100,818)
Number of NES, Ending balance	400,000	606,400	619,930
Weighted-average grant date fair value, Beginning balance	$ 18.55	$ 12.39	$ 13.45
Number of NES, vested and expect to vest at May 31, 2016	400,000
Weighted-average grant date fair value, Granted	$ 22.66	19.26	22.80
Weighted-average grant date fair value, Vested	21.39	15.44	14.30
Weighted-average grant date fair value, Forfeited	20.61	13.23	14.97
Weighted-average grant date fair value, Ending balance	18.91	18.55	12.39
Weighted-average grant date intrinsic value, Beginning balance	18.55	12.39	13.45
Weighted-average grant date fair value, NES vested and expect to vest at May 31, 2016	18.91
Weighted-average grant date intrinsic value, Granted	22.66	19.26	22.80
Weighted-average grant date intrinsic value, Vested	21.39	15.44	14.30
Weighted-average grant date intrinsic value, Forfeited	20.61	13.23	14.97
Weighted-average grant date intrinsic value, Ending balance	18.91	$ 18.55	$ 12.39
Weighted-average grant date intrinsic value, NES vested and expect to vest at May 31, 2016	$ 18.91

Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Current:
PRC	$ 39,467	$ 31,552	$ 28,235
Deferred:
PRC	(1,936)	(5,331)	(2,193)
Total provision for income taxes	$ 37,531	$ 26,221	$ 26,042

Income Taxes - Additional Information (Detail)	12 Months Ended
Income Taxes - Additional Information (Detail)	May 31, 2016 USD ($) $ / shares	May 31, 2016 CNY (¥)	May 31, 2015 USD ($) $ / shares	May 31, 2014 USD ($) $ / shares
Income Taxes [Line Items]
Income tax rate	14.04%	14.04%	11.89%	10.71%
Cash paid for dividend	$ 62,668,000			$ 54,476,000
Valuation allowance	3,624,000		$ 2,952,000
Increase in valuation allowance	672,000
Net operating loss	39,270,000
Increase of income tax expense	$ 47,559,000		$ 47,080,000	$ 49,464,000
Decrease in basic net income per share \| $ / shares	$ 0.30		$ 0.30	$ 0.32
Decrease in diluted net income per share \| $ / shares	$ 0.30		$ 0.30	$ 0.31
Withholding tax, dividends paid by PRC schools and subsidiaries to their foreign investors			10.00%
Aggregate undistributed earnings available for distribution	$ 1,133,217,000		$ 789,338,000
Unrecognized tax benefits	0		0	$ 0
Wholly owned subsidiaries [Member]
Income Taxes [Line Items]
Cash paid for dividend	75,898,000		55,587,000
Withholding tax paid for the dividend	$ 7,590,000		5,559,000
Beijing Pioneer Technology Company Limited [Member]
Income Taxes [Line Items]
Preferential tax rate	15.00%	15.00%
Minimum [Member]
Income Taxes [Line Items]
Underpayment of tax liability	$ 16,000	¥ 100,000
Shanghai Smart Words Software Technology Company Limited [Member]
Income Taxes [Line Items]
Withholding tax paid for the dividend			$ 5,559,000
Beijing Hewstone, Shanghai Smart Words and Beijing Decision [Member]
Income Taxes [Line Items]
Withholding tax paid for the dividend	$ 7,590,000
High and new tech enterprise (HNTE) [Member]
Income Taxes [Line Items]
Income tax rate	15.00%	15.00%	15.00%	15.00%
Preferential tax rate				15.00%
Newly established software enterprise (NESE) [Member]
Income Taxes [Line Items]
Preferential tax rate	12.50%	12.50%
Tax holiday year	2 years	2 years
Income tax holiday, description	Enterprises that qualify as the "newly established software enterprise" ("NESE") are exempt from EIT for two years beginning the enterprise's first profitable year followed by a tax rate of 12.5% for the succeeding three years.	Enterprises that qualify as the "newly established software enterprise" ("NESE") are exempt from EIT for two years beginning the enterprise's first profitable year followed by a tax rate of 12.5% for the succeeding three years.
Peoples Republic Of China Entities [Member]
Income Taxes [Line Items]
Income tax rate	25.00%	25.00%
Variable interest entities (VIEs) [Member]
Income Taxes [Line Items]
Income tax rate	25.00%	25.00%
Hong Kong [Member]
Income Taxes [Line Items]
Income tax rate	16.50%	16.50%
Earliest Tax Year [Member]
Income Taxes [Line Items]
Net operating loss expiration dates	May 31, 2017	May 31, 2017
Latest Tax Year [Member]
Income Taxes [Line Items]
Net operating loss expiration dates	May 31, 2021	May 31, 2021

Income Taxes - Components of Group's Deferred Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands

May 31, 2016

May 31, 2015

Current deferred tax assets

Allowance doubtful accounts

^[1]

$ 205

Accrued expenses

^[1]

15,990

Deferred revenue for incentive plan

^[1]

2,382

Total current deferred tax assets

^[1]

18,577

Less: valuation allowance

^[1]

(589)

Current deferred tax assets, net

^[1]

17,988

Non-current deferred tax assets

Allowance doubtful accounts

^[1]

$ 252

Accrued expenses

^[1]

18,427

Deferred revenue for incentive plan

^[1]

2,376

Net operating loss carry-forwards

^[1]

6,910

7,403

Total non-current deferred tax assets

^[1]

27,965

7,403

Less: valuation allowance

^[1]

(3,624)

(2,363)

Non-current deferred tax assets, net

^[1]

24,341

5,040

Non-current deferred tax liabilities

Acquired of non-current assets

^[1]

(1,982)

(2,461)

Total non-current deferred tax liabilities

^[1]

$ (1,982)

$ (2,461)

[1]	The Group chose to early adopt ASU 2015-17 and classified all deferred tax assets and liability as noncurrent as of May 31,2016. The Group did not retrospectively apply the changes to prior years.

Income Taxes - Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates (Detail)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Income Tax Disclosure [Abstract]
Statutory tax rate	25.00%	25.00%	25.00%
Effect of expenses not deductible for tax purposes	4.57%	4.91%	4.33%
Effect of tax holiday	(18.05%)	(20.82%)	(20.34%)
Changes in valuation allowance	0.25%	(0.59%)	(0.09%)
Effect of dividend withholding tax	2.27%	3.39%	1.81%
Total provision for income taxes	14.04%	11.89%	10.71%

Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Numerator used in basic and diluted net income per share:
Net income attributable to New Oriental Education & Technology Group Inc	$ 224,884	$ 193,013	$ 215,704
Net income available for future distribution	$ 224,884	$ 193,013	$ 215,704
Shares (denominator):
Weighted average common shares outstanding used in computing basic net income per share	156,782,439	156,438,606	156,033,992
Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method	609,247	863,568	1,869,472
Weighted average common shares outstanding used in computing diluted net income per share	157,391,686	157,302,174	157,903,464
Net income per share
- Basic	$ 1.43	$ 1.23	$ 1.38
- Diluted	$ 1.43	$ 1.23	$ 1.37

Net Income Per Share - Additional Information (Detail) - shares	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Earnings Per Share [Abstract]
Weighted average treasury shares excluded in computing basic net income per share	1,596,948	1,940,781	2,345,395
Employee stock options excluded from the dilutive share calculation	0	0	0

Related Party Transaction - Balances and Transaction with Related Parties (Detail) - USD ($)
$ in Thousands

12 Months Ended

May 31, 2016

May 31, 2015

May 31, 2014

Amounts due from related parties - non current

$ 1,741

$ 1,497

4,539

3,586

Gain on disposal of subsidiaries

1,995

3,760

$ 3,621

Non-Interest Bearing Loan [Member]

191

Metropolis Holding China Limited [Member] | Chairman [Member]

2,518

Amounts due from related parties - non current

^[1]

1,741

1,497

MaxEn [Member] | Joint Venture [Member]

^[1]

637

1,096

Rental expense

^[1]

7,139

5,298

4,173

^[2]

812

2,490

Gain on disposal of subsidiaries

^[2]

1,992

$ 3,621

Zhishang Education [Member] | Joint Venture [Member]

177

Haiwei Career [Member] | Joint Venture [Member]

$ 3

Haiwei Career [Member] | Joint Venture [Member] | Non-Interest Bearing Loan [Member]

^[3]

1,553

Dianshijingwei [Member] | Long-term investee [Member]

^[3]

1,520

Weixuemingri [Member] | Joint Venture [Member] | Non-Interest Bearing Loan [Member]

^[4]

1,520

Beijing Tongban Education & Technology Co. Ltd. [Member] | Long-term investee [Member]

^[5]

998

STEMedu.cn [Member] | Long-term investee [Member]

Cost

Others [Member]

^[6]

^[6]

$ 29

[1]	Since April 2010, the Group began renting a large portion of a building owned by Metropolis Holding China Limited for office space. In March 2012, Metropolis Holding China Limited was acquired by a company wholly owned by Mr. Yu, the Group's chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2016, the current and non-current amounts due from Metropolis Holding China Limited were US$637 and US$1,741, respectively, which represented prepaid rent and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by all of the directors.
[2]	In September 2012, MaxEn became a joint venture of the Group. As a result, MaxEn became a related party of the Group thereafter. As of May 31, 2016, the amount due from MaxEn was US$812, which represented MaxEn's pre-operating expenses of US$377 prepaid by the Group, US$91 payable to Beijing Decision for service fee and unpaid consideration of US$344 for disposal of North Star; the amount due to MaxEn was US$13, which represented miscellaneous payments paid for the Group. The amount due to MaxEn is non-interest bearing and unsecured and has no fixed repayment terms.
[3]	In October 2014, Haiwei Career became a joint venture of the Group. As a result, Haiwei Career became a related party of the Group. As of May 31, 2016, the amount due from Haiwei Career, was US$1,553 in which US$1,520 represented loans from the Group to Haiwei Career with non-interest bearing for its daily operation supporting. All the loans are payable within one year.
[4]	As of May 31, 2016, the amount due from Dianshijingwei represented the non-interest bearing loan provided by the Group before the disposal of Dianshijingwei to support its daily operation.
[5]	As of May 31, 2016, the Group lent non-interest bearing loan with a total amount of US$998 to Weixuemingri to support its daily operation. The Group fully wrote off the outstanding loan in the same year.
[6]	As of May 31, 2016, the balance in "others" included the current receivables from long-term investees of Tongban, Goldern Finance and STEMedu.cn.

Related Party Transaction - Balances and Transaction with Related Parties (Parenthetical) (Detail) - USD ($)
$ in Thousands

12 Months Ended

May 31, 2016

May 31, 2015

Amounts due from related parties, non-current

$ 4,539

$ 3,586

1,741

1,497

Metropolis Holding China Limited [Member] | Chairman [Member]

Amounts due from related parties, non-current

^[1]

637

1,096

^[1]

1,741

1,497

MaxEn [Member] | Joint Venture [Member]

MaxEn [Member] | Joint Venture [Member] | Pre-operating Expenses [Member]

^[2]

812

$ 2,490

MaxEn [Member] | Joint Venture [Member] | Service Fee [Member]

377

MaxEn [Member] | Joint Venture [Member] | Unpaid Consideration [Member]

MaxEn [Member] | Joint Venture [Member] | Miscellaneous Payments [Member]

344

Haiwei Career [Member] | Joint Venture [Member]

Non-Interest Bearing Loan [Member]

^[3]

1,553

Non-Interest Bearing Loan [Member] | Haiwei Career [Member] | Joint Venture [Member]

2,518

Non-Interest Bearing Loan [Member] | Weixuemingri [Member] | Joint Venture [Member]

^[3]

$ 1,520

Loans paid off period

1 year

Condensed Financial Statements, Captions [Line Items]

^[4]

$ 998

[1]	Since April 2010, the Group began renting a large portion of a building owned by Metropolis Holding China Limited for office space. In March 2012, Metropolis Holding China Limited was acquired by a company wholly owned by Mr. Yu, the Group's chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2016, the current and non-current amounts due from Metropolis Holding China Limited were US$637 and US$1,741, respectively, which represented prepaid rent and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by all of the directors.
[2]	In September 2012, MaxEn became a joint venture of the Group. As a result, MaxEn became a related party of the Group thereafter. As of May 31, 2016, the amount due from MaxEn was US$812, which represented MaxEn's pre-operating expenses of US$377 prepaid by the Group, US$91 payable to Beijing Decision for service fee and unpaid consideration of US$344 for disposal of North Star; the amount due to MaxEn was US$13, which represented miscellaneous payments paid for the Group. The amount due to MaxEn is non-interest bearing and unsecured and has no fixed repayment terms.
[3]	In October 2014, Haiwei Career became a joint venture of the Group. As a result, Haiwei Career became a related party of the Group. As of May 31, 2016, the amount due from Haiwei Career, was US$1,553 in which US$1,520 represented loans from the Group to Haiwei Career with non-interest bearing for its daily operation supporting. All the loans are payable within one year.
[4]	As of May 31, 2016, the Group lent non-interest bearing loan with a total amount of US$998 to Weixuemingri to support its daily operation. The Group fully wrote off the outstanding loan in the same year.

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Operating Leased Assets [Line Items]
Rent expenses for cancelable and non-cancelable leases	$ 173,797	$ 157,523	$ 142,032
Maximum [Member]
Operating Leased Assets [Line Items]
Lease term	10 years

Commitments and Contingencies - Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands	May 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017	$ 149,265
2018	126,088
2019	98,760
2020	74,714
2021	46,702
Thereafter	51,483
Operating Leases, Future Minimum Payments Due, Total	$ 547,012

Commitments and Contingencies - Future Minimum Capital Commitments under Non-Cancelable Construction (Detail) $ in Thousands	May 31, 2016 USD ($)
Capital Lease Obligations [Line Items]
Capital commitment	$ 9,427
Purchase of Property and Equipment [Member]
Capital Lease Obligations [Line Items]
Capital commitment	1,389
Leasehold Improvements [Member]
Capital Lease Obligations [Line Items]
Capital commitment	$ 8,038

Noncontrolling Interests - Summary of Changes in Noncontrolling Interest (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015
Noncontrolling Interest [Line Items]
Beginning balance	$ 3,496
Capital injection from noncontrolling interest shareholders	28,919	$ 3,791
Capital repurchase from noncontrolling interest shareholders	(3,497)
Unrealized gain on available-for-sale securities attributed to noncontrolling interest shareholders	999
Foreign currency translation adjustment attributed to noncontrolling interest shareholders	(271)
Gain (loss) attributed to noncontrolling interest shareholders	444	(295)
Ending balance	30,090	3,496
Koolearn Corporation [Member]
Noncontrolling Interest [Line Items]
Beginning balance	3,458
Capital injection from noncontrolling interest shareholders		3,752
Capital repurchase from noncontrolling interest shareholders	(3,497)
Gain (loss) attributed to noncontrolling interest shareholders	39	(294)
Ending balance		3,458
Beijing New Oriental Xuncheng Network Technology Company Limited [Member]
Noncontrolling Interest [Line Items]
Capital injection from noncontrolling interest shareholders	28,737
Unrealized gain on available-for-sale securities attributed to noncontrolling interest shareholders	999
Foreign currency translation adjustment attributed to noncontrolling interest shareholders	(269)
Gain (loss) attributed to noncontrolling interest shareholders	423
Ending balance	29,890
Beijing New Road Information Consulting Services Co., Ltd. [Member]
Noncontrolling Interest [Line Items]
Beginning balance	38
Capital injection from noncontrolling interest shareholders		39
Foreign currency translation adjustment attributed to noncontrolling interest shareholders	(2)
Gain (loss) attributed to noncontrolling interest shareholders	3	(1)
Ending balance	39	$ 38
Jinzhou New Oriental Training School [Member]
Noncontrolling Interest [Line Items]
Capital injection from noncontrolling interest shareholders	182
Gain (loss) attributed to noncontrolling interest shareholders	(21)
Ending balance	$ 161

Noncontrolling Interests - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended
	Feb. 28, 2015	May 31, 2016	Apr. 30, 2016	Nov. 30, 2015	May 31, 2015
Koolearn Corporation [Member]
Noncontrolling Interest [Line Items]
Ordinary shares issued	5,000,000
Cash consideration received on issuance of equity	$ 3,752
Noncontrolling interest, equity percentage					5.90%
Beijing New Road Information Consulting Services Co., Ltd. [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest, equity percentage	49.00%
Noncontrolling interest, ownership percentage by parent	51.00%
Beijing New Oriental Xuncheng Network Technology Company Limited [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest, equity percentage			12.50%	21.00%
Noncontrolling interest, ownership percentage by parent		69.12%
Jinzhou New Oriental Training School [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest, equity percentage			40.00%
Noncontrolling interest, ownership percentage by parent			60.00%

Segment Information - Additional Information (Detail) - Segment	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Segment Reporting Information [Line Items]
Number of operating segments	7	6	6
Sales Revenue, Segment [Member] \| Product Concentration Risk [Member]
Segment Reporting Information [Line Items]
Quantitative threshold	10.00%

Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Segment Reporting Information [Line Items]
Net revenues	$ 1,478,348	$ 1,246,766	$ 1,138,887
Operating costs and expenses:
Cost of revenues	(614,364)	(526,320)	(451,669)
Selling and marketing	(197,897)	(188,483)	(169,062)
General and administrative	(471,010)	(378,434)	(324,210)
Total operating costs and expenses	(1,283,271)	(1,093,237)	(944,941)
Gain on disposal of subsidiaries	3,760		3,621
Operating income	198,837	153,529	197,567
Total assets	2,354,834	1,951,537	1,603,545
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	1,478,348	1,246,766	1,138,887
Operating costs and expenses:
Cost of revenues	(614,364)	(526,320)	(451,669)
Selling and marketing	(174,814)	(166,276)	(147,057)
General and administrative	(365,181)	(304,770)	(250,172)
Total operating costs and expenses	(1,283,271)	(1,093,237)	(944,941)
Gain on disposal of subsidiaries	3,760		3,621
Operating income	198,837	153,529	197,567
Total assets	1,610,880	1,311,508	1,020,841
Corporate, Non-Segment [Member]
Operating costs and expenses:
Total operating costs and expenses	(128,912)	(95,871)	(96,043)
Total assets	743,954	640,029	582,704
Language Training and Test Preparation Course [Member]
Operating costs and expenses:
Total assets	1,120,580	937,020	709,979
Language Training and Test Preparation Course [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	1,238,572	1,040,380	969,947
Operating costs and expenses:
Cost of revenues	(516,370)	(442,994)	(388,998)
Selling and marketing	(125,815)	(122,697)	(112,092)
General and administrative	(296,686)	(245,315)	(204,679)
Total operating costs and expenses	(938,871)	(811,006)	(705,769)
Operating income	299,701	229,374	264,178
Total assets	1,120,580	937,020	709,979
Primary and Secondary Education [Member]
Operating costs and expenses:
Total assets	78,556	75,046	65,357
Primary and Secondary Education [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	30,011	26,735	24,063
Operating costs and expenses:
Cost of revenues	(9,812)	(9,083)	(8,488)
Selling and marketing	(744)	(1,039)	(956)
General and administrative	(12,558)	(10,068)	(8,748)
Total operating costs and expenses	(23,114)	(20,190)	(18,192)
Operating income	6,897	6,545	5,871
Total assets	78,556	75,046	65,357
Others [Member]
Operating costs and expenses:
Total assets	411,744	299,442	245,505
Others [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	209,765	179,651	144,877
Operating costs and expenses:
Cost of revenues	(88,182)	(74,243)	(54,183)
Selling and marketing	(48,255)	(42,540)	(34,009)
General and administrative	(55,937)	(49,387)	(36,745)
Total operating costs and expenses	(192,374)	(166,170)	(124,937)
Gain on disposal of subsidiaries	3,760		3,621
Operating income	21,151	13,481	23,561
Total assets	$ 411,744	$ 299,442	$ 245,505

Mainland China Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Compensation and Retirement Disclosure [Abstract]
Contributions for employee benefits	$ 71,434	$ 61,448	$ 52,159

Statutory Reserve - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Statutory Accounting Practices [Line Items]
Percentage allocation of profits to general reserves	10.00%
Registered capital	50.00%
Accrued for general reserve	$ 695	$ 530	$ 1,029
Equity restructure in subsidiary	$ (766)
Percentage allocation of profits to development fund	25.00%
Group transfers to the statutory reserves	$ 31,853	23,742	22,145
Development fund [Member]
Statutory Accounting Practices [Line Items]
Appropriations to reserves	$ 31,158	$ 23,212	$ 21,116

Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Restricted Net Assets [Line Items]
Restricted net assets	$ 358,956	$ 270,674
Variable interest entities (VIEs) [Member] \| Paid-in capital and statutory reserves [Member]
Restricted Net Assets [Line Items]
Restricted net assets	292,542	216,526
Wholly owned subsidiaries [Member] \| Paid-in capital and statutory reserves [Member]
Restricted Net Assets [Line Items]
Restricted net assets	$ 66,414	$ 54,148

Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	May 31, 2016	Jan. 31, 2016	May 31, 2015
Subsequent Event [Line Items]
Long term investments		$ 178,863		$ 325,991
Convertible Bond [Member] \| Shangjiachongye
Subsequent Event [Line Items]
Long term investments			$ 12,310
Subsequent Event [Member] \| Redeemable Preferred Shares [Member] \| Shangjiachongye
Subsequent Event [Line Items]
Equity interest held	9.80%
Subsequent Event [Member] \| Redeemable Preferred Shares [Member] \| Shangjiachongye \| Converted All the Convertible Bonds [Member]
Subsequent Event [Line Items]
Equity interest held	4.90%
Subsequent Event [Member] \| Redeemable Preferred Shares [Member] \| Shangjiachongye \| Additionally Invested [Member]
Subsequent Event [Line Items]
Long term investments	$ 12,205
Equity interest held	4.90%

Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013
Current assets:
Cash and cash equivalents	$ 709,209	$ 531,298	$ 371,593	$ 417,166
Term deposit	86,706	69,091
Prepaid expense and other current assets	99,677	97,833
Amounts due from related parties	4,539	3,586
Total current assets	1,869,336	1,348,880
Long-term investments	178,863	325,991
Total assets	2,354,834	1,951,537	1,603,545
Current liabilities:
Accrued expenses and other current liabilities	217,044	178,803
Amounts due to related parties	42	1,995
Total current liabilities	918,190	725,232
Equity:
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2015 and 2016; 158,379,387 shares issued as of May 31, 2015 and 2016; 156,486,763 and 157,439,397 shares outstanding as of May 31, 2015 and 2016, respectively)	1,584	1,584
Treasury stock	(9)	(19)
Additional paid-in capital	223,422	141,653
Retained earnings	931,930	824,015
Accumulated other comprehensive income	62,948	99,505
Total New Oriental Education & Technology Group Inc. shareholders' equity	1,404,572	1,220,348
Total liabilities and equity	2,354,834	1,951,537
Parent Company [Member]
Current assets:
Cash and cash equivalents	11,984	22,748	15,874	28,653
Term deposit	10,000
Prepaid expense and other current assets	5,900	10,780
Amounts due from related parties	16,758	25,696
Total current assets	44,642	59,224
Long-term investments	96,498	51,902
Investments in subsidiaries and VIEs	1,353,090	1,194,328
Total assets	1,494,230	1,305,454
Current liabilities:
Accrued expenses and other current liabilities	6,016	9,689
Amounts due to related parties	83,642	75,417
Total current liabilities	89,658	85,106
Equity:
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2015 and 2016; 158,379,387 shares issued as of May 31, 2015 and 2016; 156,486,763 and 157,439,397 shares outstanding as of May 31, 2015 and 2016, respectively)	1,584	1,584
Treasury stock	(9)	(19)
Additional paid-in capital	223,422	141,653
Retained earnings	1,116,627	977,625
Accumulated other comprehensive income	62,948	99,505
Total New Oriental Education & Technology Group Inc. shareholders' equity	1,404,572	1,220,348	$ 1,025,758	$ 857,252
Total liabilities and equity	$ 1,494,230	$ 1,305,454

Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Parenthetical) (Detail) - $ / shares	May 31, 2016	May 31, 2015
Condensed Financial Statements, Captions [Line Items]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	158,379,387	158,379,387
Common stock, shares outstanding	157,439,397	156,486,763
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	158,379,387	158,379,387
Common stock, shares outstanding	157,439,397	156,486,763

Schedule I - Condensed Financial Information of Parent Company - Statements of Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Operating costs and expenses:
General and administrative	$ 471,010	$ 378,434	$ 324,210
Total operating costs and expenses	1,283,271	1,093,237	944,941
Operating loss	198,837	153,529	197,567
Interest income	66,861	66,605	44,880
Equity in earnings of subsidiaries and VIEs	(4,425)	(1,537)	(1,453)
Net income attributable to New Oriental Education & Technology Group Inc.	224,884	193,013	215,704
Parent Company [Member]
Operating costs and expenses:
General and administrative	16,732	12,963	20,435
Total operating costs and expenses	16,732	12,963	20,435
Operating loss	(16,732)	(12,963)	(20,435)
Interest income	1	2	1
Equity in earnings of subsidiaries and VIEs	241,615	205,974	236,138
Net income attributable to New Oriental Education & Technology Group Inc.	$ 224,884	$ 193,013	$ 215,704

Schedule I - Condensed Financial Information of Parent Company - Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Condensed Financial Statements, Captions [Line Items]
Net income	$ 224,884	$ 193,013	$ 215,704
Other comprehensive income, net of tax
Foreign currency translation adjustment	(72,464)	12,006	(17,894)
Unrealized gain on available-for-sale securities, net of tax effect of nil, nil and nil for years ended May 31, 2014, 2015 and 2016	36,635	21,940	586
Other comprehensive (loss) / income	(35,829)	33,946	(17,308)
Comprehensive income	188,327	226,959	198,396
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net income	224,884	193,013	215,704
Other comprehensive income, net of tax
Foreign currency translation adjustment	(72,193)	12,006	(17,894)
Unrealized gain on available-for-sale securities, net of tax effect of nil, nil and nil for years ended May 31, 2014, 2015 and 2016	35,636	21,940	586
Other comprehensive (loss) / income	(36,557)	33,946	(17,308)
Comprehensive income	$ 188,327	$ 226,959	$ 198,396

Schedule I - Condensed Financial Information of Parent Company - Statements of Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Condensed Financial Statements, Captions [Line Items]
Unrealized gain on available-for-sale securities, tax effect
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Unrealized gain on available-for-sale securities, tax effect	$ 0	$ 0	$ 0

Schedule I - Condensed Financial Information of Parent Company - Statements of Changes in Equity (Detail) - USD ($)
$ in Thousands

12 Months Ended

May 31, 2016

May 31, 2015

May 31, 2014

May 31, 2013

$ 1,220,348

Issuance of ADS shares for the exercises of employee share options

158,379,387

$ 7,848

Reissuance of treasury stock for the exercises of employee share options

$ 2,431

$ 11,362

13,524

Reissuance of treasury stock for the exercises of employee share options, shares

2,208,545

Reissuance of treasury stock for Non-vested equity shares vested, shares

2,097,814

$ 16,810

15,689

20,079

(62,668)

^[1]

(54,476)

^[2]

$ (59,420)

^[3]

$ (16,865)

^[4]

(2,800,849)

(762,100)

(1,683,400)

224,884

$ 193,013

$ 215,704

68,498

3,791

(3,752)

(766)

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

(72,464)

12,006

(17,894)

36,635

21,940

$ 586

$ 1,404,572

$ 1,220,348

Condensed Financial Statements, Captions [Line Items]

158,379,387

Common Shares [Member]

Issuance of ADS shares for the exercises of employee share options

156,486,763

157,758,666

156,695,987

$ 11

Reissuance of treasury stock for the exercises of employee share options, shares

240,304

953,514

1,014,727

Reissuance of treasury stock for Non-vested equity shares vested, shares

712,330

575,432

810,052

(2,800,849)

^[3]

(762,100)

^[4]

Additional Paid-in Capital [Member]

157,439,397

156,486,763

157,758,666

156,695,987

Condensed Financial Statements, Captions [Line Items]

Issuance of ADS shares for the exercises of employee share options

$ 7,837

Reissuance of treasury stock for the exercises of employee share options

$ 2,428

$ 11,353

13,514

Reissuance of treasury stock for Non-vested equity shares vested

(7)

(6)

(8)

16,810

15,689

20,079

^[2]

(14,891)

(59,392)

^[3]

(16,858)

^[4]

39,579

(255)

Condensed Financial Statements, Captions [Line Items]

^[5]

23,214

Treasury Stock [Member]

Reissuance of treasury stock for the exercises of employee share options

Reissuance of treasury stock for Non-vested equity shares vested

Retained Earnings [Member]

(28)

^[3]

(7)

^[4]

Condensed Financial Statements, Captions [Line Items]

(62,668)

^[1]

(39,585)

^[2]

Accumulated Other Comprehensive Income (Loss) [Member]

^[5]

(22,448)

Condensed Financial Statements, Captions [Line Items]

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

(72,193)

12,006

(17,894)

35,636

21,940

586

Parent Company [Member]

Condensed Financial Statements, Captions [Line Items]

$ 1,220,348

1,025,758

857,252

Issuance of ADS shares for the exercises of employee share options

158,379,387

7,848

Reissuance of treasury stock for the exercises of employee share options

$ 2,431

11,362

13,524

16,810

15,689

20,079

(62,668)

(54,476)

(59,420)

(16,865)

224,884

193,013

215,704

39,579

(255)

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

(72,193)

12,006

(17,894)

35,636

21,940

586

$ 1,404,572

$ 1,220,348

1,025,758

$ 857,252

Parent Company [Member] | Common Shares [Member]

158,379,387

Condensed Financial Statements, Captions [Line Items]

$ 1,584

$ 1,573

Issuance of ADS shares for the exercises of employee share options

156,486,763

157,758,666

156,695,987

$ 11

Reissuance of treasury stock for the exercises of employee share options, shares

240,304

953,514

1,014,727

Reissuance of treasury stock for Non-vested equity shares vested, shares

712,330

575,432

810,052

(2,800,849)

(762,100)

$ 1,584

$ 1,573

Parent Company [Member] | Additional Paid-in Capital [Member]

157,439,397

156,486,763

157,758,666

156,695,987

Condensed Financial Statements, Captions [Line Items]

Issuance of ADS shares for the exercises of employee share options

$ 141,653

$ 174,009

$ 164,336

7,837

Reissuance of treasury stock for the exercises of employee share options

2,428

11,353

13,514

Reissuance of treasury stock for Non-vested equity shares vested

(7)

(6)

(8)

16,810

15,689

20,079

(14,891)

(59,392)

(16,858)

39,579

(255)

23,214

Parent Company [Member] | Treasury Stock [Member]

223,422

141,653

174,009

$ 164,336

Condensed Financial Statements, Captions [Line Items]

Reissuance of treasury stock for the exercises of employee share options

(19)

(6)

(17)

Reissuance of treasury stock for Non-vested equity shares vested

(28)

(7)

Parent Company [Member] | Retained Earnings [Member]

(9)

(19)

(6)

(17)

Condensed Financial Statements, Captions [Line Items]

977,625

784,612

608,493

(62,668)

(39,585)

224,884

193,013

215,704

(23,214)

Parent Company [Member] | Accumulated Other Comprehensive Income (Loss) [Member]

1,116,627

977,625

784,612

608,493

Condensed Financial Statements, Captions [Line Items]

99,505

65,559

82,867

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

(72,193)

12,006

(17,894)

35,636

21,940

586