View Filing Data

^[1]

$ (59,420)

(59,392)

(28)

(59,420)

(2,800,849)

$ 192,718

193,013

$ (295)

Unrealized gain on available-for-sale investments, net of tax effect of nil, nil and US$3,762

12,006

21,940

Capital injection of noncontrolling interest

3,791

Ending Balance at May. 31, 2015

1,223,844

$ 1,584

141,653

(19)

99,505

153,610

824,015

1,220,348

3,496

Ending Balance, shares at May. 31, 2015

156,486,763

Reissuance of treasury stock for the exercises of employee share options

2,431

2,428

2,431

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

240,304

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

(7)

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

712,330

Share-based compensation expense

16,810

Transfer to statutory reserves

31,853

(31,853)

225,328

224,884

444

Unrealized gain on available-for-sale investments, net of tax effect of nil, nil and US$3,762

(72,464)

(72,193)

(271)

36,635

35,636

999

Capital injection of noncontrolling interest

68,498

39,579

28,919

Ending Balance at May. 31, 2016

$ 1,434,662

$ 1,584

223,422

(9)

62,948

184,697

931,930

1,404,572

30,090

Ending Balance, shares at May. 31, 2016

158,379,387

157,439,397

Equity restructuring of a subsidiary

^[2]

$ (62,668)

(62,668)

^[3]

23,214

(766)

(22,448)

Repurchase shares from noncontrolling interest

(3,752)

(255)

(3,497)

Reissuance of treasury stock for the exercises of employee share options

$ 256

256

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

2,256,592

48,047

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

(2)

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

2,297,814

200,000

Share-based compensation expense

$ 20,287

20,287

Transfer to statutory reserves

35,278

(35,278)

276,796

274,457

2,339

Unrealized gain on available-for-sale investments, net of tax effect of nil, nil and US$3,762

(47,440)

(46,331)

(1,109)

22,521

22,544

(23)

Ending Balance at May. 31, 2017

$ 1,720,078

$ 1,584

249,126

$ (7)

$ 39,161

$ 219,975

$ 1,171,109

1,680,948

39,130

Ending Balance, shares at May. 31, 2017

158,379,387

157,687,444

Capital injection of noncontrolling interests and new noncontrolling interest recognized in an acquisition

$ 12,996

$ 5,163

$ 7,833

[1]	On July 22, 2014, the Company's board of directors authorized the repurchase of up to US$120,000 of the Company's shares during the period from July 28, 2014 through March 31, 2015. 2,800,849 shares were repurchased in the year ended May 31, 2015.
[2]	On July 19, 2015, the Company declared a special cash dividend in the amount of US$0.4 per ADS. The aggregate amount of cash dividend paid was US$62,668, which was funded by retained earnings. The dividend was fully paid on October 7, 2015 to shareholders of record at the close of business on September 4, 2015.
[3]	In January 2016, Beijing New Oriental Xuncheng Network Technology Co., Ltd. ("Xuncheng"), a subsidiary of the Group, transformed from a limited liability company to a joint stock limited company. The Group's accumulated retained earnings and statutory reserve related to Xuncheng were reclassified to additional paid-in-capital in the consolidation financials statements.

Consolidated Statements of Changes in Equity (Parenthetical) - USD ($)	12 Months Ended
	May 31, 2016	Jul. 22, 2014
Shares repurchase approved amount		$ 120,000,000
Special cash dividend declared per share	$ 0.4
Cash paid for dividend	$ 62,668,000
Retained Earnings [Member]
Cash paid for dividend	$ 62,668,000
Fiscal Year 2016 Dividend [Member]
Special cash dividend declared date	Jul. 19, 2015
Dividend payment date	Oct. 07, 2015
Shareholders date of record	Sep. 04, 2015

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Cash flows from operating activities
Net income	$ 276,796	$ 225,328	$ 192,718
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property and equipment	53,864	47,281	46,663
Amortization of intangible assets	1,419	1,122	607
Amortization of land use rights	106	112	116
Loss on disposal of property and equipment	1,747	2,061	2,904
Gain on disposal of subsidiaries		(3,760)
Goodwill impairment	1,682	0	0
Impairment loss from long-term investments	2,338	0	0
Realized gain from long-term investments	(7,086)
Share-based compensation expense	20,287	16,810	15,689
Allowance for doubtful accounts	486	904	680
Loss from equity method investments	3,289	4,425	1,537
Deferred income taxes	(518)	(1,936)	(5,548)
Changes in operating assets and liabilities
Accounts receivables	(75)	(187)	(2,096)
Prepaid expenses and other current assets	(14,796)	(7,711)	(22,503)
Inventory	(5,376)	(5,649)	(1,750)
Long-term deposit	(9,652)	(532)	(2,598)
Long term prepaid rent	(624)	169	668
Accounts payable	3,592	4,830	9,248
Accrued expenses and other current liabilities	35,774	47,945	11,120
Income taxes payable	18,529	7,878	7,607
Deferred revenue	237,635	179,583	117,086
Amounts due to related parties	8	(1,887)	1,994
Amounts due from related parties	(1,288)	1,108	3
Net cash (used in) provided by operating activities	618,137	517,894	374,145
Cash flows from investing activities
Restricted cash paid for establishing new schools and subsidiaries	(1,197)	(5,461)	(2,055)
Release of restricted cash for establishing new schools and subsidiaries	1,333	4,747	976
Investments in bank deposits maturing over three months	(130,000)	(64,540)	(32,703)
Settlement of bank deposits maturing over three months	18,836	42,603	62,924
Investments in short-term held-to-maturity investments	(1,343,198)	(1,112,172)	(943,476)
Settlement of short-term held-to-maturity investments	820,380	851,250	992,117
Purchase of property and equipment	(105,736)	(64,401)	(55,318)
Proceeds from disposal of property and equipment	2,807	1,310	1,738
Purchase of China Management Software Institute, net of cash acquired of US$68			(4,551)
Purchase of Qingdao Alice, net of cash acquired of US$2,306 (Note 3)			(10,623)
Purchase of Ainuoshida, net of cash acquired of US$2,499 (Note 3)	(908)
Payments for available-for-sale investments	(43,498)	(78,764)	(26,076)
Payments for equity method investments	(1,473)	(468)	(10,955)
Purchase of held-to-maturity investments			(145,415)
Settlement of held-to-maturity investments	112,200	115,178
Proceed from disposal of cost method investment		540
Loans provided to related parties	(1,810)	(2,575)
Net cash used in investing activities	(672,264)	(309,737)	(173,417)
Cash flows from financing activities
Proceeds from issuances of common shares upon exercise of share option	542	2,176	11,332
Cash paid for shares repurchased			(59,420)
Cash paid for dividend		(62,668)
Capital contribution from noncontrolling interests	8,807	69,747	3,791
Repurchase shares from noncontrolling interests		(3,752)
Net cash (used in) provided by financing activities	9,349	5,503	(44,297)
Effects of exchange rate changes	(23,413)	(35,749)	3,274
Net change in cash and cash equivalents	(68,191)	177,911	159,705
Cash and cash equivalents at beginning of year	709,209	531,298	371,593
Cash and cash equivalents at end of year	641,018	709,209	531,298
Supplement disclosure of cash flow information
Income taxes paid	36,665	32,037	23,896
Non-cash investing and financing activities:
Payable for purchase of property and equipment	$ 21,445	11,953	7,433
Payable for long term available-for-sale investment			$ 1,452
Beijing Dianshijingwei Technology Co.,Ltd [Member]
Adjustments to reconcile net income to net cash provided by operating activities
Gain on disposal of subsidiaries		(3,760)
Cash flows from investing activities
Proceeds from disposal of subsidiaries		1,520
Boost Caring [Member]
Cash flows from investing activities
Proceeds from disposal of subsidiaries		$ 1,496

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	May 31, 2017	May 31, 2015
China Management Software Institute [Member]
Purchase of business, cash acquired		$ 68
Qingdao Alice [Member]
Purchase of business, cash acquired		$ 2,306
Beijing Ainuoshida Education and Technology Company Limited [Member]
Purchase of business, cash acquired	$ 2,499

Organization and Principal Activities

12 Months Ended

May 31, 2017

Organization and Principal Activities

1.	ORGANIZATION AND PRINCIPAL ACTIVITIES

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

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

As of May 31, 2017, details of the Company’s subsidiaries, variable interest entity and its schools and subsidiaries were as follows:

Name

Date of
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

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”)

April 12, 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 Jinghong Software Technology Company Limited (“Beijing Jinghong”)

September 18, 2016

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

Elite Concept Holdings Limited (“Elite Concept”)

December 3, 2007

Hong Kong

100%

Educational Consulting

Winner Park Limited (“Winner Park”)

December 9, 2008

Hong Kong

100%

Educational Consulting

Smart Shine International Limited (“Smart Shine”)

December 9, 2008

Hong Kong

100%

Educational Consulting

Abundant State Limited (“Abundant”)

March 20, 2013

BVI

100%

Educational Consulting

Koolearn Holding Limited (“Koolearn HK”)

June 21, 2013

Hong Kong

100%

Educational Consulting

New Oriental Vision Overseas Consulting Australia Pty Ltd.

January 25, 2017

Australia

100%

Consulting

Variable interest entity of the Company:

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

August 2, 2001

PRC

N/A

Education consulting,
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

Xi’an Yanta District New Oriental School

November 26, 2002

PRC

N/A

Language education

Nanjing Gulou New Oriental Advanced Study School

November 28, 2002

PRC

N/A

Language education

Shenzhen New Oriental Training School

October 15, 2003

PRC

N/A

Language education

Shenyang New Oriental Foreign Language Training School

June 18, 2003

PRC

N/A

Language education

Chongqing New Oriental Training School

August 15, 2003

PRC

N/A

Language education

Chengdu New Oriental School

August 18, 2003

PRC

N/A

Language education

Xiangyang New Oriental Training School

October 26, 2004

PRC

N/A

Language education

Changsha Furong District New Oriental Training School

May 25, 2005

PRC

N/A

Language education

Jinan New Oriental School

May 31, 2005

PRC

N/A

Language education

Taiyuan New Oriental Training School

April 20, 2005

PRC

N/A

Language education

Ha’er Bin Nangang District New Oriental Training School

May 20, 2005

PRC

N/A

Language education

Changchun New Oriental Training School

July 26, 2005

PRC

N/A

Language education

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

July 21, 2005

PRC

N/A

Language education

Hangzhou New Oriental Education & Consulting Company Limited

May 8, 2012

PRC

N/A

Language education

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

October 22, 2012

PRC

N/A

Language education

Zhengzhou New Oriental Training School

July 19, 2005

PRC

N/A

Language education

Zhuzhou New Oriental Training School

April 30, 2006

PRC

N/A

Language education

Shijiazhuang New Oriental School

April 3, 2006

PRC

N/A

Language education

Suzhou New Oriental School

April 26, 2006

PRC

N/A

Language education

Anshan New Oriental Training School

June 13, 2006

PRC

N/A

Language education

Schools and subsidiaries of New Oriental China:

Hefei New Oriental Foreign Language Training School

June 13, 2006

PRC

N/A

Language education

Yunnan New Oriental Training School

June 13, 2006

PRC

N/A

Language education

Wuxi New Oriental Advanced Study School

August 14, 2006

PRC

N/A

Language education

Fuzhou Gulou District New Oriental Training School

September 1, 2006

PRC

N/A

Language education

Nanchang Donghu District New Oriental Language School

March 16, 2007

PRC

N/A

Language education

Yichang Xiling District New Oriental School

January 1, 2006

PRC

N/A

Language education

Jingzhou New Oriental School

April 10, 2007

PRC

N/A

Language education

Dalian New Oriental Training School

June 12, 2007

PRC

N/A

Language education

Huangshi New Oriental Training School

March 17, 2008

PRC

N/A

Language education

Ningbo New Oriental School

April 16, 2008

PRC

N/A

Language education

Lanzhou Chengguan District New Oriental School

March 19, 2008

PRC

N/A

Language education

Xiamen Siming District New Oriental Education Training School

July 8, 2008

PRC

N/A

Language education

Qingdao New Oriental Language Training School

August 5, 2008

PRC

N/A

Language education

Nanning New Oriental Education Training School

September 18, 2008

PRC

N/A

Language education

Xuzhou New Oriental Advanced Study School

March 31, 2009

PRC

N/A

Language education

Xiangtan Yuhu District New Oriental School

July 15, 2010

PRC

N/A

Language education

Zhenjiang New Oriental School

July 19, 2010

PRC

N/A

Language education

Luoyang New Oriental School

November 25, 2010

PRC

N/A

Language education

Nantong Chongchuan District New Oriental School

December 28, 2010

PRC

N/A

Language education

Jilin Chuanying District New Oriental School

March 17, 2011

PRC

N/A

Language education

Guiyang Yunyan District New Oriental School

March 21, 2011

PRC

N/A

Language education

Inner Mongolia Hohhot New Oriental School

April 2, 2011

PRC

N/A

Language education

Foshan New Oriental School

September 1, 2011

PRC

N/A

Language education

Tangshan Lubei District New Oriental School

May 25, 2011

PRC

N/A

Language education

Urumqi New Oriental School

May 22, 2011

PRC

N/A

Language education

Shiyan New Oriental School

May 23, 2011

PRC

N/A

Language education

Quanzhou Fengze District New Oriental Education Training School

June 26, 2015

PRC

N/A

Language education

Wenzhou New Oriental School

August 14, 2015

PRC

N/A

Language education

Weifang New Oriental Training School

October 10, 2015

PRC

N/A

Language education

Shanghai New Oriental Education & Training Company Limited

September 15, 2015

PRC

N/A

Language education

Zhuhai Xiangzhou District New Oriental Training Centre

December 11, 2015

PRC

N/A

Language education

Yangzhou Guangling District New Oriental Training Centre

March 24, 2016

PRC

N/A

Language education

Jinzhou New Oriental Training School

April 19, 2016

PRC

N/A

Language education

Baoding Jingxiu District New Oriental Training School

July 8, 2016

PRC

N/A

Language education

Taian New Oriental School

September 9, 2016

PRC

N/A

Language education

Chongqing Yongchuan District New Oriental Training School

September 25, 2016

PRC

N/A

Language education

Yantai Zhifu District New Oriental Foreign LanguageTraining School

November 11, 2016

PRC

N/A

Language education

Kaifeng New Oriental Education Information Consulting Co., Ltd.

October 31, 2016

PRC

N/A

Language education

Beijing Shengdeweixin Education & Technology Co., Ltd.

November 22, 2016

PRC

N/A

Language education

Cangzhou Yunhe District New Oriental Education Training School

November 29, 2016

PRC

N/A

Language education

Qinghuangdao Haigang District New Oriental Training School

January 17, 2017

PRC

N/A

Language education

Zhangzhou Development Zone New Oriental Education Training School

March 22, 2017

PRC

N/A

Language education

Anyang Beiguan District New Oriental Education Training School

May 16, 2017

PRC

N/A

Language education

Nanyang New Oriental Education Training Co., Ltd.

April 19, 2017

PRC

N/A

Language education

Handan Congtai District New Oriental Training School

April 27, 2017

PRC

N/A

Language education

Beijing Shuangshi Oriental Education & Technology Co., Ltd.

April 27, 2017

PRC

N/A

Educational consulting

Changchun Tongwen Gaokao Training School (“Tongwen Gaokao”)

October 27, 2008

PRC

N/A

College admission

examination training

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

October 27, 2008

PRC

N/A

Primary secondary
school education

China Management Software Institute (“CMSI”)

September 1, 2012

PRC

N/A

Higher education

Schools and subsidiaries of New Oriental China:

Beijing New Oriental Yangzhou Foreign Language School

June 6, 2002

PRC

N/A

Primary secondary
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

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

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

Schools and subsidiaries of New Oriental China:

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

October 28, 2008

PRC

N/A

Sales of educational
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

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

February 7, 2012

PRC

N/A

Sales of educational
materials and products

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

September 28, 2016

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

Shaanxi New Oriental Vision Overseas Consultancy Co., Ltd.

January 23, 2015

PRC

N/A

Consulting

Tianjin New Oriental Vision Overseas Consultancy Co., Ltd.

May 13, 2015

PRC

N/A

Consulting

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

May 29, 2015

PRC

N/A

Consulting

Liaoning New Oriental Vision Overseas Consultancy Co., Ltd.

June 10, 2015

PRC

N/A

Consulting

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

June 10, 2015

U.K.

N/A

Consulting

Gansu New Oriental Vision Overseas Consultancy Co., Ltd.

May 15, 2015

PRC

N/A

Consulting

Qingdao New Oriental Vision Overseas Consultancy Co., Ltd.

August 20, 2015

PRC

N/A

Consulting

Hunan New Oriental Vision Overseas Consultancy Co., Ltd.

November 3, 2015

PRC

N/A

Consult

ing

Beijing New Oriental Vision Overseas Service Co., Ltd.

February 24, 2016

PRC

N/A

Consulting

Beijing Ainuoshida Education & Technology Co., Ltd and its subsidiaries

September 24, 2014

PRC

N/A

Consulting

Schools and subsidiaries of New Oriental China:

Beijing New Oriental Dogwood Advertisement Co., Ltd. (“Dogwood Advertisement”)

January 20, 2004

PRC

N/A

Advertising

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

March 11, 2005

PRC

N/A

On-line education

Beijing New Oriental Kuxuehuisi Network Technology Co., Ltd.

February 1, 2013

PRC

N/A

On-line education

Beijing DongFangYouBo Network Technology Co., Ltd.

June 23, 2016

PRC

N/A

On-line education

Leci Internet Technology (Beijing) Company Limited (“Leci Internet”)

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

Ningbo Meishan Bonded Port Area Hexin Oriental Asset Management Co., Ltd.

April 28, 2017

PRC

N/A

Asset management

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

March 4, 2015

PRC

N/A

Educational consulting

Beijing Aixuehuisi Education & Technology Co., Ltd.

January 6, 2015

PRC

N/A

Technology

Beijing Fishpond Software Technology Co., Ltd.

November 24, 2015

PRC

N/A

Technology

Beijing Bright the Future Education & Technology Co., Ltd.

July 18, 2016

PRC

N/A

Consulting

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

July 11, 2007

PRC

N/A

Kindergarten

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

November 20, 2007

PRC

N/A

Kindergarten

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

April 10, 2009

PRC

N/A

Kindergarten

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

August 21, 2014

PRC

N/A

Kindergarten

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

December 4, 2014

PRC

N/A

Kindergarten

Qingdao Happy Alice Kindergarten (“Qingdao Happy Alice”)

November 29, 2005

PRC

N/A

Kindergarten

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

October 30, 2014

PRC

N/A

Kindergarten

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

January 20, 2017

PRC

N/A

Kindergarten

(a)

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

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

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

The VIE arrangements

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

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

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

Service agreements. 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, Beijing Joy Tend, Beijing Magnificence, Beijing Top, Beijng Shenghe and Beijing Jinghong, entered into agreements whereby the WFOEs sells various self-developed educational software to the schools or subsidiaries of New Oriental China. Except for four agreements that are silent on renewal, these agreements provide unlimited two-year 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.

In February 2017, as part of our efforts to streamline the corporate structure, the Group removed Shanghai Smart Words as a party to the contractual arrangements with New Oriental China and its schools and subsidiaries and shareholder. The rights and obligations of Shanghai Smart Words under these contractual arrangements have been assumed by Beijing Decision. The April 2012 equity pledge agreements have been amended to reflect the foregoing change while the terms of these agreements remain unchanged. The equity pledges of Century Friendship under the amended agreements have been registered with the Haidian District, Beijing branch of the SAIC.

Exclusive option agreement. 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.

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

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

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

Risks in relation to the VIE structure

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

•

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

•

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

•

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

•

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

•

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

•

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

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

Mr. Yu is the controlling shareholder of Century Friendship, which owns all of the equity interests in New Oriental China, which in turn owns all of the equity interests in Xuncheng, and Mr. Yu is also a beneficial owner of the Company. The interests of Mr. Yu as the beneficial owner of the VIEs may differ from the interests of the Company as a whole, since Mr. Yu is only one of the beneficial shareholders of the company, holding 13.5% of the total common shares outstanding as of May 31, 2017. The Company cannot assure that when conflicts of interest arise, Mr. Yu will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest Mr. Yu may encounter in his capacity as a beneficial owner and director of the VIEs, on the one hand, and as a beneficial owner and director of the Company, on the other hand. The Company believes Mr. Yu will not act contrary to any of the contractual arrangements and the exclusive option agreement provides the Company with a mechanism to remove Mr. Yu as a beneficial shareholder of the VIEs should he act to the detriment of the Company. The Company relies on Mr. Yu, as a director and executive officer of the Company, to fulfill his fiduciary duties and abide by laws of the PRC and Cayman Islands and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and Mr. Yu, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings.

In addition, the current sole shareholder of the New Oriental China is also a beneficial owner of the Company and therefore has no current interest in seeking to act contrary to the contractual arrangements. However, to further protect the investors’ interest from any risk that the shareholders of the New Oriental China may act contrary to the contractual arrangements, the Company, through Beijing Pioneer, entered into an irrevocable power of attorney with Century Friendship on December 3, 2012, which replaces the powers of attorney executed by Century Friendship on April 23, 2012. Through the power of attorney, Century Friendship entrusted Beijing Pioneer as its proxy to exercise its rights as the shareholder of New Oriental 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,
	2016		2017
	US$		US$
Total current assets		1,262,811		1,590,750
Total non-current assets		381,262		488,709

Total assets		1,644,073		2,079,459

Total current liabilities		860,877		1,137,288
Total non-current liabilities		1,432		2,174

Total liabilities		862,309		1,139,462


	Years ended May 31,
	2015			2016			2017
	US$			US$			US$
Net revenues		1,221,101			1,443,851			1,777,864
Net income		265,485			313,828			333,456
Net cash provided by operating activities		357,893			450,848			450,196
Net cash used in investing activities		(167,847	)		(286,235	)		(459,532	)
Net cash provided by financing activities		—			69,747			8,807

The VIEs contributed an aggregate of 97.9%, 97.7% and 98.8% of the consolidated net revenues for the years ended May 31, 2015, 2016 and 2017, 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, 2016 and 2017, the VIEs accounted for an aggregate of 69.8% and 71.1%, respectively, of the consolidated total assets, and 93.7% and 94.6%, 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, 2017

Significant Accounting Policies

2.	SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

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

Basis of consolidation

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

Use of estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include purchase price allocation relating to the business acquired, the valuation allowance for deferred tax assets, economic lives and impairment of property and equipment, impairment of goodwill, impairment of long-term investments, fair value of long-term available-for-sale investments, allowance for doubtable accounts 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 consolidated 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 non-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,
	2016			2017
	US$			US$
Beginning balance		801			408
Charge during the year		235			354
Written-off		(628	)		(177	)

Ending balance		408			585

Inventory

Inventories of the Group are mainly consisted of books. Inventories are stated at the lower of cost or net realizable value.

Land use rights

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

Property and equipment

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


Buildings			20-50 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, 2015, 2016 and 2017.

Goodwill

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

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

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

In order to test goodwill for impairment, the Group first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step 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 nil, nil and US$1,682 impairment loss on goodwill during the years ended May 31, 2015, 2016 and 2017.

Long-term investments

The Group’s long-term investments consist of cost method investments, equity method investments, available-for-sale 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 recognizes as income any dividend received from distribution of the investee’s earnings.

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

The Group estimated the fair value of these investee companies based on the discounted cash flow approach. Factors the Group considers in making such a determination include general market conditions, the duration and the extent to which the fair value of an investment is less than its cost, and the Group’s intent and ability to hold such investment. The Group recorded US$2, nil and nil impairment losses on its cost method investments during the years ended May 31, 2015, 2016 and 2017, respectively.

(b)

Equity Method Investments

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

An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimated the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long term growth rate of a company’s business, the estimation of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The Company did not record impairment losses on its equity method investment during the years ended May 31, 2015, 2016 and 2017, respectively.

(c)

Available-for-sale 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. The Company recorded nil, nil and US$2,338 impairment losses on its available-for-sale investments during the years ended May 31, 2015, 2016 and 2017, respectively.

(d)

Long-term Held-to-maturity Investments

The Group’s long-term held-to-maturity investment represents a trust guaranteed by a bank with the maturity of more than one year, which is stated at its amortized cost. As of May 31, 2017, the related balance was all collected.

Value added tax (“VAT”)

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

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

Since May 2016, in accordance with Cai Shui [2016] No. 68, the non-academic 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.

Revenue recognition

Revenue is recognized when persuasive evidence that an arrangement exists, delivery of the product or service has occurred, the selling price is both fixed and determinable and collection is reasonably assured. Revenue is reported net of business taxes, VAT and refunds. Business tax and VAT amounted to US$45,664 and US$52,993 for the years ended May 31, 2015 and 2016, respectively. Subsequent to May 2016, the Group no longer incurred business taxes. The primary sources of the Group’s revenues are as follows:

(a)

Educational programs and services

The educational programs and services consist of language training and test preparation courses, primary and secondary school education and college admission examination retaking training services. Tuition is generally paid in advance and is initially recorded as deferred revenue. Tuition revenue for educational programs and services is recognized proportionately as the instructions are delivered, and is reported net of business taxes, VAT and related surcharges, and tuition refunds. Students are entitled to a short term course trial period which commences on the date the course begins. Tuition refunds are provided to students if they decide within the trial period that they no longer want to take the course. Tuition refunds have been insignificant in the fiscal years ended May 31, 2015, 2016 and 2017, respectively. After the trial period, if a student withdraws from a class, usually no refunds will be provided and any collected but unearned portion of the fee is recognized at that time.

The Group also sells online-learning cards primarily to distributors at fixed prices after deducting a pre-determined 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 them. Total advertising expenses were US$38,295, US$39,753 and US$41,498, for the years ended May 31, 2015, 2016 and 2017, respectively, and have been included as part of selling and marketing expenses.

Government subsidies

The Group recognizes government subsidies as miscellaneous income when they are received because they are not subject to any past or future conditions, there are no performance conditions or conditions of use, and they are not subject to future return. Government subsidies received and recognized as miscellaneous income totaled US$1,230, US$494 and US$1,325, for the years ended May 31, 2015, 2016 and 2017, respectively.

Foreign currency translation

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

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

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

Foreign currency risk

The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents, restricted cash, and term deposits denominated in RMB amounted to US$747,762 and US$762,895 as of May 31, 2016 and 2017, respectively.

Fair value

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

Level 1

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

Level 2

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

Level 3

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

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

Measured fair value on a recurring basis

The Group measured its financial assets and liabilities primarily including available-for-sale securities at fair value on a recurring basis as of May 31, 2016 and 2017.

As of May 31, 2016 and 2017, the available-for-sale investments recorded in long-term investments include redeemable preferred shares, common shares of two listed companies, convertible bond and assets management plan and trust (Refer to Note 12). Those are measured and recorded at fair value on a recurring basis in periods subsequent to their initial recognition and are as follows:


	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


	May 31, 2017
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		36,406		—		—		36,406
Redeemable preferred shares		—		30,669		123,029		153,698
Asset management plan and trust		—		7,486		—		7,486

Total		36,406		38,155		123,029		197,590

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

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

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

The Group did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. During the years ended May 31, 2016 and 2017, the Group transferred several redeemable preferred shares from level 2 to level 3 for a total of US$63,881 and US$31,505 respectively as the Company changed its fair value measurement for those investees. Specifically, the Company changed its measurement method from recent transactions to a market approach or income approach described in the previous paragraph to determine the investment’s fair value as no recent transactions were available as of May 31, 2016 and 2017.

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


	Available-for-sale investments
	US$
Balance at June 1, 2015		—
Transfer from level 2 fair value measurements		63,881
Initial recognition		2,844
Unrealized gain		3,148

Balance at May 31, 2016		69,873

Transfer from level 2 fair value measurements		31,505
Initial recognition		—
Unrealized gain		21,651

Balance at May 31, 2017		123,029

Measured fair value on a nonrecurring basis

Goodwill and other intangible assets are measured at fair value on a nonrecurring basis when an impairment is recognized.

The Group measured goodwill at fair value on a nonrecurring basis when it is annually evaluated or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group measured acquired intangible assets using the income approach—discounted cash flow method when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group did not recognize any impairment loss related to other intangible assets arising from acquisitions for the years ended May 31, 2015, 2016 and 2017. The fair value of goodwill is determined using discounted cash flows, and an impairment loss will be recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The Group recognized nil, nil and US$1,682 of impairment loss related to goodwill for the years ended May 31, 2015, 2016 and 2017, respectively.

Fair value of financial instruments

The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, term deposits, short-term held-to-maturity investments, accounts receivable, amount due from/to related parties, long-term investments within one year, available-for-sale 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, restricted cash, term deposits, 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 basis of assets and liabilities using enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of operations in the period of change. Deferred tax assets are reduced by a valuation allowance when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized.

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

Comprehensive income

Comprehensive income includes net income, unrealized gain or loss on available-for-sale 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 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, 2017, substantially all of the Group’s cash and cash equivalents, and term deposits were deposited with financial institutions with high-credit ratings and quality. Accounts receivable are typically unsecured and are derived from revenues earned from customers in the PRC. The Group performs periodic credit evaluations and provides an allowance for doubtful accounts to reduce the accounts receivable balance to its net realizable value. The Group did not have any customers constituting 10% or more of the consolidated net revenues and accounts receivable in fiscal years 2015, 2016 and 2017, respectively.

Newly adopted accounting pronouncements

In February 2015, the Financial Accounting Standards Board (“FASB”) issued the Audit Standards Update (“ASU”) 2015-02, “Amendments to the Consolidation Analysis”. The objective of issuing the amendments is to change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendments are an improvement to current U.S. GAAP because they simplify the Codification and reduce the number of consolidation models through the elimination of the indefinite deferral of Statement 167 and because they place more emphasis on risk of loss when determining a controlling financial interest. The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. A reporting entity may apply the amendments in this Update using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. The Group adopted this ASU on June 1, 2016 and determined it has no impact in the current year.

In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), which modifies the accounting for inventory. Under this ASU, the measurement principle for inventory will change from lower of cost or market value to lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Group adopted this ASU on June 1, 2016 and determined it had no impact in the current year.

Recently issued accounting pronouncements not yet adopted

In May 2014, the FASB issued ASU 2014-09 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, 2016, including interim periods within that reporting period. Early application is not permitted.

The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures.

In August 2015, FASB issued its final standard formally amending the effective date of the new revenue recognition guidance. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The new revenue guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption.

The Group plans to adopt the ASU on June 1, 2018, and is in the process of evaluating the impact to its consolidated financial statements.

In January 2016, FASB issued ASU 2016-01 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 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 does not expect the adoption of this pronouncement will have a significant effect on its consolidated financial position or results of operations.

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 does not expect the adoption of this pronouncement will have a significant effect on its consolidated financial position or results of operations.

In November 2016, the FASB issued ASU 2016-18: Statement of Cash Flows (Topic 230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update do not provide a definition of restricted cash or restricted cash equivalents. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Group is in the process of evaluating the impact of the Update on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this Update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity that is a SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group is in the process of evaluating the impact of the Update on its consolidated financial statements.

Business Acquisitions

12 Months Ended

May 31, 2017

Business Combinations [Abstract]

Business Acquisitions

3.	BUSINESS ACQUISITIONS

Acquisition of Qingdao Alice

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


	US$			Amortization 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

Acquisition of Ainuoshida

In March 2015, the Group invested and paid US$1,129 to obtain 18% equity interest in Ainuoshida to expand the business of its oversea consulting and benefit from the synergistic effect expected from such investment. The investment was initially recognized as available-for-sale investment as the Group determined that it was a debt security and measured the investment subsequently at fair value. In December 2016, the Group acquired an additional 33% equity interest in Ainuoshida, for a total consideration of US$3,842, which was fully paid as of May 31, 2017. The acquisition resulted in the Group obtaining control of Ainuoshida with an ownership of 51% equity interest.

The Group recognized an investment gain of US$723 as a result of remeasuring the 18% equity interest immediately to fair value before the business combination. The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The acquisition-date fair value of the equity interest held by the Group immediately prior to the acquisition date was measured at fair value using a discounted cash flow method and taking into account certain factors including the management projection of discounted future cash flow and an appropriate discount rate. The purchase price allocation described below was based on a valuation analysis provided by an independent appraiser. The purchase price was allocated as at the date of acquisition as follows:


	US$			Amortization period
Cash		2,499
Other current assets		4,874
Property, plant and equipment		493			1-5 years
Intangible assets
Trademark		1,708			10 years
Student base		1,069			1 year
Software		76			3 years
Goodwill		5,516
Other current liabilities		(6,040	)
Deferred tax liabilities		(713	)
Fair value of the 18% equity interest		(1,741	)
Noncontrolling interests		(3,899	)

Total		3,842

Disposal of Subsidiaries

12 Months Ended

May 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Disposal of Subsidiaries

4.	DISPOSAL OF SUBSIDIARIES

Disposal of Dianshijingwei

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

The disposal gains from the transaction was presented as continuing operation.

Short-Term Investments

12 Months Ended

May 31, 2017

Investments, Debt and Equity Securities [Abstract]

Short-Term Investments

5.	SHORT-TERM INVESTMENTS

Short-term investments consisted of the following:


	As of May 31,
	2016		2017
	US$		US$
Held-to-maturity investments		819,229		1,312,942

Short-term investments consist of various fixed-income financial products purchased from Chinese banks and trusts and are classified as held-to-maturity 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 5.0%. 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 Group estimated that their fair value approximate their amortized costs considering their short term maturities and high credit quality. No OTTI loss was recognized for the years ended May 31, 2015, 2016 and 2017, respectively.

Inventory

12 Months Ended

May 31, 2017

Inventory Disclosure [Abstract]

Inventory

6.	INVENTORY

Inventory consisted of the following:


	As of May 31,
	2016		2017
	US$		US$
Course materials in schools		5,787		7,419
Publications in bookstores		21,516		24,323

		27,303		31,742

Inventory was marked down to the lower of cost or net realizable value, in the amount of US$638 and US$152 for the years ended May 31, 2016 and 2017, respectively.

Prepaid Expenses and Other Current Assets

12 Months Ended

May 31, 2017

Prepaid Expenses and Other Current Assets

7.	PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:


	As of May 31,
	2016		2017
	US$		US$
Prepaid rent		33,135		44,746
Advances to suppliers		23,143		29,358
Interest receivable		9,341		14,005
Rental deposit		7,122		8,355
Receivable from BOCI for the proceeds of exercise of options and withholding tax		5,548		—
Prepaid advertising fees		3,250		4,235
Staff advances (a)		2,829		2,514
Value added taxes recoverable		2,534		2,305
Deposit of advertising & decoration		1,961		1,411
Receivable of social insurance		1,374		1,651
Prepaid property taxes and other taxes		616		947
Others (b)		8,824		9,870

		99,677		119,397

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

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

Property and Equipment, Net

12 Months Ended

May 31, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

8.	PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following:


	As of May 31,
	2016			2017
	US$			US$
Buildings		146,411			141,477
Transportation equipment		8,553			8,618
Furniture and education equipment		76,492			88,671
Computer equipment and software		40,707			48,385
Leasehold improvements		169,345			216,848

		441,508			503,999
Less: accumulated depreciation		(209,937	)		(235,853	)
Construction in-process		6,127			14,654

		237,698			282,800

Depreciation expense for the years ended May 31, 2015, 2016 and 2017 was US$46,663, US$47,281 and US$53,864 respectively.

Land Use Rights, Net

12 Months Ended

May 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Land Use Rights, Net

9.	LAND USE RIGHTS, NET

Land use rights consisted of the following:


	As of May 31,
	2016			2017
	US$			US$
Land use rights		5,178			5,003
Less: accumulated amortization		(1,201	)		(1,307	)
Exchange differences		(71	)		(28	)

Land use rights, net		3,906			3,668

Amortization expenses for land use rights for the years ended May 31, 2015, 2016 and 2017 were US$116, US$112 and US$106, respectively. The Group expects to recognize US$106 in amortization expense for each of the next five years and US$3,138 thereafter.

Intangible Assets, Net

12 Months Ended

May 31, 2017

Intangible Assets, Net

10.

INTANGIBLE ASSETS, NET

Intangible assets consisted of the following:


	As of May 31,
	2016			2017
	US$			US$
Costs:
Intangible assets with indefinite lives:
Trademark		248			241
Intangible assets with finite lives:
Trademark		1,293			2,976
Courseware		47			122
Student base		1,978			2,995
Favorable lease		713			689
License		415			415

		4,694			7,438

Accumulated amortization:
Trademark		(383	)		(581	)
Courseware		(47	)		(58	)
Student base		(1,404	)		(2,455	)
Favorable lease		(123	)		(199	)
License		(119	)		(140	)

		(2,076	)		(3,433	)

Net carrying amount:
Intangible assets with indefinite lives:
Trademark		248			241
Intangible assets with definite lives:
Trademark		910			2,395
Courseware		—			64
Student base		574			540
Favorable lease		590			490
License		296			275

		2,618			4,005

Amortization expenses for the intangible assets for the years ended May 31, 2015, 2016 and 2017, were US$607, US$1,122 and US$1,419, respectively. As of May 31, 2017, the Group expects to record amortization expenses related to intangible assets US$963, US$400, US$380, US$368 and US$368 for the years ended May 31, 2018, 2019, 2020, 2021, 2022, respectively, and US$1,526 thereafter.

Goodwill, Net

12 Months Ended

May 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Net

11.

GOODWILL, NET


	As of May 31,
	2016			2017
	US$			US$
Costs:
Beginning balance		11,194			10,545
Acquisition of Ainuoshida		—			5,516
Exchange differences		(649	)		(296	)

Ending balance		10,545			15,765

Accumulated goodwill impairment loss:
Beginning balance		—			—

Impairment of Tongwen		—			(1,682	)
Ending balance		—			(1,682	)

Goodwill, net		10,545			14,083

The Company’s goodwill reflects the excess of the consideration paid or transferred including the fair value of contingent consideration over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed by evaluating an initial qualitative assessment of the likelihood of impairment. If this step indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed.

The Company acquired Tongwen Gaokao and Tongwen High school (collectively “Tongwen”) in September 2008. During the year ended May 31, 2017, the Group performed its goodwill impairment testing and determined there was an impairment. As a result, the entire balance of goodwill associated with Tongwen and amounting to US$1,682 was written off.

Long Term Investments

12 Months Ended

May 31, 2017

Investments Schedule [Abstract]

Long Term Investments

12.

LONG-TERM INVESTMENTS

Long term investments consisted of the following:


	As of May 31,
	2016		2017
	US$		US$
Cost method investments:		1,460		8,132
Equity method investments:
Beijing Dongfangheli Investment and Development Ltd. (“Dongfangheli”) (a)		3,451		2,851
Juesheng Education Group Ltd. (“Juesheng.com”) (b)		3,249		2,881
Suzhou Qingrui Education & Technology Co., Ltd. (“Kouyu100”) (c)		3,261		3,436
Other equity method investments (j)		3,638		2,369
Available-for-sale investments:
Shanghai Golden Education & Training Co. Ltd.(“Golden Finance”) (d)		34,242		44,809
Shanghai ALO7 Technology Co., Ltd.(“Alo7.com”) (e)		29,639		17,370
AVIC Trust Tianqi No.556 (“Trust 556”) (f)		16,037		—
Tarena International, Inc. (“Tarena”) (g)		15,945		25,695
Beijing ShangJiaChongYe Education &Technology Co. Ltd.(“Shangjiachongye”) (h)		12,310		32,644
Beijing ROBOROBO Technology Co. Ltd. (“ROBOROBO”) (i)		9,999		—
Beijing Shengtong Printing Co. Ltd (“Shengtong”) (i)		—		10,711
Other available-for-sale investments (j)		45,632		66,361

		178,863		217,259

(a)

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

(b)

In August 2014 and May 2015, the Group invested US$3,006 and US$501 respectively in Juesheng.com, a company engaging in providing international educational products search engine service, for 11.9% equity interests. These investments were classified as available-for-sale investment as the Company determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gain of US$3,933 was reported in other comprehensive income for the year ended May 31, 2015. In March 2016, Juesheng.com successfully listed on the National Equities Exchange and Quotations (“NEEQ”). Upon the listing, the Group’s preference rights, including its redemption and liquidation preference were terminated and the shares became common shares. As the share conversion is not considered an earnings realization event, all unrealized gains deferred in accumulated other comprehensive income were reversed to the carrying amount of the common shares such that the initial carrying amount of such shares is equal to the original cost basis of the original investment. The Group further accounted for its investment by using equity method as the Group determined that it can exercise significant influence over Juesheng.com.

(c)

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

(d)

In April and November 2015, the Group invested US$3,398 and US$11,437 respectively in Golden Finance, a company focusing on training programs associated with finance and business management, for 19.5% equity interest. Unrealized holding gains of nil, US$19,407 and US$10,567 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively.

(e)

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

In March, June and September 2014, the Group further invested US$2,576, US$300 and US$10,000 into Alo7.com. As of May 31, 2017, the Company had 17.2% equity interests in Alo7.com. Unrealized holding gains of US$13,428, US$1,704 and loss of US$8,678 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively.

(f)

In October 2015, the Group invested US$15,654 in a two-year trust named Trust 556 with an expected annualized interest rate of 8.5%. The principal and the interest are not guaranteed during the Group’s holding period and will be paid upon maturity. The investment was classified as available-for-sale investment as the Group determined that the shares were debt securities and unrealized holding gains of US$383 and US$706 were reported in other comprehensive income for the years ended May 31, 2016 and 2017, respectively. As of May 31, 2017, the investment of US$16,743 was reclassified to long term investment due within one year.

(g)

In March 2014, the Group invested US$13,500 in Tarena, which is a service provider of IT professional education in China, for around 3% equity interest. Unrealized holding gain of US$3,495, loss of US$1,005 and gain of US$9,750 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively.

(h)

In January 2016, the Group invested US$12,310 to acquire convertible bond issued by Shangjiachongye, which focuses on online education specific to vocational qualification training. In July 2016, the Group converted all of the convertible bonds into redeemable preferred shares of Shangjiachongye for a 4.9% equity interest. In the meantime, the Group additionally invested US$12,205 into redeemable preferred shares for another 4.9% equity interest. Unrealized holding gains of nil and US$8,129 were reported in other comprehensive income for the years ended May 31, 2016 and 2017, respectively.

(i)

In April 2015, the Group acquired 18% equity interest in ROBOROBO for a cash consideration of US$4,356, a company applying various robots build training courses for kids with different ages. Unrealized holding gains of nil and US$5,643 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively.

In February 2017, the Group disposed the shares in ROBOROBO to exchange for shares newly issued by Shengtong which is an A-share listed company in China. Realized gain of US$7,086 was recognized for the year ended May 31, 2017. The equity interest acquired in Shengtong was classified as available-for-sale security and measured at fair value. Unrealized holding gain of US$423 was reported in other comprehensive income for the year ended May 31, 2017.

(j)	As to the other investments, they represent several insignificant investments either classified as equity method investments or available-for-sale investments as of May 31, 2016 and 2017.

Accrued Expenses and Other Current Liabilities

12 Months Ended

May 31, 2017

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

13.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following:


	As of May 31,
	2016		2017
	US$		US$
Accrued payroll		131,151		157,167
Payable for purchase of property and equipment		11,953		21,445
Amounts reimbursable to employees (a)		8,294		11,022
Individual taxes withholding		8,186		6,454
Refundable fees received from students (b)		5,755		8,687
Business taxes payable		5,259		—
Value-added taxes payable		6,506		9,516
Accrued advertising fees		6,443		7,798
Rent payable		6,285		7,532
Welfare payable		6,004		6,102
Royalty fees payable (c)		3,637		4,011
Refundable deposit (d)		3,161		5,382
Accrued professional service fees		2,352		1,486
Other taxes payable		1,240		1,604
Others (e)		10,818		12,494

Total		217,044		260,700

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

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

(c)	Royalty fees payable related to payments to content providers for on-line 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)	Others primarily included transportation expenses, utility fees, property management fees, and other miscellaneous expenses payable.

Share-Based Compensation

12 Months Ended

May 31, 2017

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

Share-Based Compensation

14.

SHARE-BASED COMPENSATION

On January 20, 2006, the Company adopted 2006 Share Incentive Plan (“2006 Share Incentive Plan”), under which the Company may grant share options to purchase up to 8,000,000 common shares of the Group, to its employees, directors and consultants. The number of common shares available for grant under the 2006 Share Incentive Plan may be increased annually by (i) an additional 5,000,000 shares on January 1, 2007, (ii) an additional 5,000,000 shares on January 1, 2008, and (iii) an annual increase in common shares to be added on the first business day of each calendar year beginning in 2009 equal to the lesser of (x) 3,000,000 shares, (y) two percent (2%) of total common shares outstanding as of such date, or (z) a lesser number of shares as determined by the Group’s management. In the event the aggregate number of shares that may be issued in any given year under all share compensation plans has reached the maximum number of shares allowed in that year, the Company may grant additional awards up to 2,000,000 shares, or extra shares. The number of shares granted in excess of the annual maximum in any given year will result in the reduction of the maximum shares available for grant in the next year. The 2006 Share Incentive Plan has an effective period of 10 years.

As of May 31, 2017, the Company has transferred 16,000,000 common shares to its depositary bank for the issuance to employees and non-employees upon the exercise of their vested share options or upon the vesting of NES. The Company launched a share repurchase program and has since 2013 repurchased a cumulative 5,246,349 of common sharesfrom the open market. Such shares are reserved for the employees and non-employees to exercise of their vested share options and NES in the future. As of May 31, 2017, 691,943 treasury shares were for future issuance upon the exercise of share options and vesting of NES.

The Company recorded total share-based compensation expense of US$15,689, US$16,810 and US$20,287 during the years ended May 31, 2015, 2016 and 2017, respectively.

Share options

The following table summarizes information regarding the share options granted:


Share options	Shares granted		Grant-date 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. During the year ended May 31, 2017, the Group canceled 23,938 outstanding share options granted on March 5, 2007 due to the 10 years validity.

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

The Company adopted the 2016 Share Incentive Plan (“2016 Share Incentive Plan”) in January 2016 to continue to provide incentives to employees, directors and consultants after the termination of 2006 Share Incentive Plan. The maximum aggregate number of shares which may be issued pursuant to all awards (including options) granted under the 2016 Share Incentive Plan is 10,000,000 shares. As of May 31, 2017, no share options had been granted under 2016 Share Incentive Plan.

As of May 31, 2017, 11,285,510 common shares out of the 16,000,000 common shares held by the depositary bank had been issued to employees and non-employees upon the exercise of their share options, and 2,256,592 shares out of the 5,246,349 treasury shares had been reissued to employees and non-employees upon exercise of their share options.

A summary of share options activity under 2006 Share Incentive Plan for year ended May 31, 2017 is as follows:


	Weighted Number of Options		Weighted- average Exercise Prices		Remaining Contractual Life		Aggregated Intrinsic Value
			US$		years		US$
Options outstanding at May 31, 2016		78,337		6.13		0.58		2,829
Granted		—		—
Exercised		48,047		5.37
Forfeited		23,938		8.75

Options outstanding at May 31, 2017		6,352		2.02		1.58		442

Options vested and expect to vest at May 31, 2017		6,352		2.02		1.58		442

Options exercisable at May 31, 2017		6,352		2.02		1.58		442

The total intrinsic value of share options exercised during the years ended May 31, 2015, 2016 and 2017 were US$5,249, US$4,802and US$2,133, respectively. No new share options were granted during the years ended May 31, 2015, 2016 and 2017, respectively. As of May 31, 2017, no unrecognized compensation expense related to share options.

NES

The following table summarizes information regarding NES granted in fiscal year 2015, 2016 and 2017:


NES	Grant-date Shares granted		Fair Value and Intrinsic value
			US$
Grant date:
July 23, 2014		209,650		21.01
September 29, 2014		24,020		22.32
February 5, 2015		600,000		18.52
July 9, 2015		486,330		22.69
October 19, 2015		60,000		22.45
November 16, 2016		436,016		47.19

Total		1,816,016

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

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

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

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

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

In November 2016, the Company granted 436,016 NES to employees which is eligible to vest on June 30, 2017.

As of May 31, 2017, 4,714,490 common shares out of the 16,000,000 common shares held by the depositary bank had been issued to employees and non-employees upon the vesting of their NES, and 2,297,814 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 year ended May 31, 2017 is as follows:


	Number of NES			Weighted- average grant date fair value and intrinsic value
				US$
NES outstanding at May 31, 2016		400,000			18.91
Granted		436,016			47.19
Vested		(200,000	)		18.91
Forfeited		(4,050	)		47.19

NES outstanding at May 31, 2017		631,966			38.24

NES vested and expect to vest at May 31, 2017		631,966

The total fair value of shares vested during the year ended May 31, 2017 was US$3,783. The weighted average grant date fair value of NES granted during the years ended May 31, 2015, 2016 and 2017 was US$19.26, US$22.66 and US$47.19 respectively. As of May 31, 2017, total unrecognized compensation expense for NES of US$3,486 is expected to be recognized over a weighted average period of 0.2 years.

Income Taxes

12 Months Ended

May 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

15.

INCOME TAXES

Significant components of provision for income taxes for the years ended May 31, 2015, 2016 and 2017 were as follows:


	Years ended May 31,
	2015			2016			2017
	US$			US$			US$
Current:
PRC		31,552			39,467			51,142

Deferred:
PRC		(5,331	)		(1,936	)		(518	)

Total provision for income taxes		26,221			37,531			50,624

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

The Company’s subsidiaries Smart Shine, Winner Park and Elite Concept are located in Hong Kong and are subject to an income tax rate of 16.5% for taxable income earned in Hong Kong. Elite Concept and Smart Shine received a special dividend of US$75,898 and nil during the years ended May 31, 2016 and 2017. Withholding taxes of US$7,590 and nil in connection with the dividends were fully paid during the years ended May 31, 2016 and 2017, respectively.

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

Enterprises that qualify as a high and new technology enterprise (“HNTE”) are subject to a tax rate of 15%. Beijing Decision, Beijing Hewstone, Beijing Pioneer and Xuncheng continued to qualify as HNTE and were subject to a tax rate of 15% during the years ended May 31, 2015, 2016 and 2017. Beijing Smart Wood qualified as HNTE and could enjoy a tax rate of 15% since January 2016.

Enterprises that qualify as the “newly established software enterprise” (“NESE”) are exempt from Enterprise Income Tax (“EIT”) for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years. Beijing Smart Wood, Beijing Right Time, Beijing Joy Tend, Beijing Top, Beijing Shenghe, Beijing Magnificence and Beijing Jinghong were qualified as NESE and enjoyed the EIT tax benefit that began from January 2012, January 2013, January 2013, January 2014, January 2014, January 2015 and January 2017, respectively.

Beijing Haidian School was not required by the governing tax bureau to pay any EIT since its establishment through May 31, 2017. If Beijing Haidian School is required to pay EIT in future, this could have material impact to the Group’s consolidated financial statements. However, the Group believes that it is more likely than not that any change to the tax treatment of Beijing Haidian School shall be prospectively applied.

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


	As of May 31,
	2016			2017
	US$			US$
Deferred tax assets, non-current
Allowance doubtful accounts		252			2,017
Accrued expenses		18,427			21,893
Deferred revenue for incentive plan		2,376			233
Net operating loss carry-forward		6,910			8,696

Total deferred tax assets, non-current		27,965			32,839
Less: valuation allowance		(3,624	)		(3,981	)

Net, deferred tax assets, non-current		24,341			28,858

Deferred tax liabilities, non-current
Acquired of non-current assets		1,982			2,220

Total deferred tax liabilities, non-current		1,982			2,220

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

The Group determined the valuation allowance on an entity by entity basis. The valuation allowance, which is primarily related to entities with net operating loss carry-forwards for which the Company does not believe it will ultimately be realized, was US$3,981 as of May 31, 2017, an increase of US$357 from US$3,624 as of May 31, 2016.

As of the year ended May 31, 2017, the Group had net operating loss carried-forwards of US$36,608 from the Company’s PRC subsidiaries and VIE, which will expire on various dates from May 31, 2018 to May 31, 2022.

A reconciliation of the effective tax rates from the 25% statutory tax rates was as follows for the years ended May 31, 2015, 2016 and 2017:


	Years ended May 31,
	2015			2016			2017
	%			%			%
Statutory tax rate		25.00			25.00			25.00
Effect of expenses not deductible for tax purposes		4.91			4.57			2.03
Effect of tax holiday		(20.82	)		(18.05	)		(13.41	)
Changes in valuation allowance		(0.59	)		0.25			0.11
Effect of dividend withholding tax		3.39			2.27			1.58

Total provision for income taxes		11.89			14.04			15.31

If the tax holidays granted to the WFOEs and current tax treatments on certain schools and subsidiaries of New Oriental China were not available, the Group’s income tax expense would have increased by US$47,080, US$47,559 and US$42,895, the basic net income per share attributable to the Company would decrease by US$0.30 , US$0.30 and US$0.27 for the years ended May 31, 2015, 2016 and 2017, respectively, and the diluted net income per share attributable to the Company would decrease by US$0.30, US$0.30 and US$0.27 for the years ended May 31, 2015, 2016 and 2017, respectively.

Under the New Income Tax Law effective from January 1, 2008, the rules for determining whether an entity is resident in the PRC for tax purposes have changed and the determination of residence depends among other things on the “place of actual management”. If the Group, or its non-PRC 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$1,133,217 and US$1,457,705 as of May 31, 2016 and 2017, respectively. Upon distribution of such earnings, the Company will be subject to PRC EIT taxes, the amount of which is impractical to estimate. The Company did not record any tax on any of the aforementioned undistributed earnings because the relevant subsidiaries and VIEs do not intend to declare dividends and the Company intends to permanently reinvest it within the PRC. Additionally, no deferred tax liability was recorded for taxable temporary differences attributable to the undistributed earnings because the Company believes the undistributed earnings can be distributed in a manner that would not be subject to income tax.

The Group did not identify any significant unrecognized tax benefits for the years ended May 31, 2015, 2016 and 2017, respectively. The Group did not incur any significant interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months. The Group has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods.

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

Net Income Per Share

12 Months Ended

May 31, 2017

Earnings Per Share [Abstract]

Net Income Per Share

16.

NET INCOME PER SHARE

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


	Years ended May 31,
	2015		2016		2017
	US$		US$		US$
Numerator used in basic and diluted net income per share:
Net income attributable to New Oriental
Education &Technology Group Inc.		193,013		224,884		274,457

Net income available for future distribution		193,013		224,884		274,457

Shares (denominator):
Weighted average common shares outstanding used in computing basic net income per share		156,438,606		156,782,439		157,551,320

Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method		863,568		609,247		435,074

Weighted average common shares outstanding used in computing diluted net income per share		157,302,174		157,391,686		157,986,394

Net income per share
- Basic		1.23		1.43		1.74
- Diluted		1.23		1.43		1.74

The weighted average of 1,940,781, 1,596,948 and 828,067 treasury shares have been excluded in computing basic net income per share for the years ended May 31, 2015, 2016 and 2017, respectively.

There was no employee stock options excluded from the dilutive share calculation for the years ended May 31, 2015, 2016 and 2017 due to anti-dilutive effects.

Related-Parties Transactions

12 Months Ended

May 31, 2017

Related-Parties Transactions

17.

RELATED-PARTIES TRANSACTIONS

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	2016		2017
			US$		US$
Metropolis Holding China Limited	(1)	Company controlled by the executive Chairman		1,741		1,064
MaxEn		Joint Venture		—		684

				1,741		1,748


				Amounts due from related parties, current As of May 31,				Amounts due to related parties, current As of May 31,
	Notes	Relationship		2016		2017		2016		2017
				US$		US$		US$		US$
Metropolis Holding China Limited	(1)		Company controlled by the executive Chairman		637		1,895		—		—
MaxEn			Joint Venture		812		—		13		12
Beijing Haiwei Career Services Co., Ltd (“Haiwei Career”)	(2)		Joint Venture		1,553		3,965		—		—
Dianshijingwei	(3)		Long-term investee		1,520		—		—		—
Others	(4)				17		88		29		36

Total					4,539		5,948		42		48


Transactions:						Rental expense For the years ended May 31
						2015		2016		2017
						US$		US$		US$
Metropolis Holding China Limited	(1)		Company controlled by the Executive Chairman				5,298		7,139		6,790


						Loan to related parties For the years ended May 31
						2015		2016		2017
						US$		US$		US$
Haiwei Career	(2)		Joint Venture				—		1,520		3,965
Beijing Weixuemingri Network Technology Co., Ltd. (“Weixuemingri”)	(5)		Joint Venture				—		998		1,733
Great Thanks Holdings Limited			Company established by the shareholder of the Joint Venture				—		—		1,450

Total							—		2,518		7,148


						Revenue For the years ended May 31
						2015		2016		2017
						US$		US$		US$
MaxEn			Joint Venture				—		177		—
Beijing Tongban Education & Technology Co., Ltd (“Tongban”)			Long-term investee				—		3		12
STEMedu.cn			Long-term investee				—		11		60
Goldern Finance			Long-term investee				—		—		18

Total							—		191		90


Transactions:		Cost For the years ended May 31
		2015		2016		2017
		US$		US$		US$
STEMedu.cn	Long-term investee		—		30		23

(1)

Since April 2010, the Group began renting a large portion of a building owned by Metropolis Holding China Limited for office space. In March 2012, Metropolis Holding China Limited was acquired by a company wholly -owned by Mr. Yu, the Group’s executive chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2017, the current and non-current amounts due from Metropolis Holding China Limited were US$1,895 and US$1,064, respectively, which represented prepaid rent and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by all of the directors.

(2)

In October 2014, Haiwei Career became a joint venture of the Group. As a result, Haiwei Career became a related party of the Group. As of May 31, 2017, the amount due from Haiwei Career was US$3,965, which represented loans from the Group to Haiwei Career with non-interest bearing to support its daily operation supporting. All the loans are payable within one year.

(3)	As of May 31, 2016, the amount due from Dianshijingwei represented the non-interest bearing loan provided by the Group before the disposal of Dianshijingwei to support its daily operation. As of May 31, 2017, the Group had collected the loans from Dianshijingwei.

(4)	As of May 31, 2017, the balance in “others” included the current receivables from long-term investees of Tongban, Goldern Finance and etc.

(5)	As of May 31, 2017, the amount due from Weixue Mingri represented the non-interest bearing loans provided by the Group to support its daily operation and the outstanding loans were fully wrote off by the Group.

Commitments and Contingencies

12 Months Ended

May 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

18.

COMMITMENTS AND CONTINGENCIES

Operating leases

The Group leases offices, classroom and warehouse facilities under operating leases. The terms of substantially all of these leases are ten years or less. Future minimum lease payments under non-cancelable operating leases were as follows on May 31, 2017:


	US$
Years ended May 31:
2018		204,996
2019		185,059
2020		157,333
2021		123,894
2022		83,329
Thereafter		88,611

		843,222

Rent expense for the years ended May 31, 2015, 2016 and 2017 related to all cancelable and non-cancelable leases were US$157,523, US$173,797 and US$199,329, respectively.

Capital commitments

As of May 31, 2017, future minimum capital commitments under non-cancelable construction and investments were as follows:


	US$
Capital commitment for the purchase of property and equipment		3,359
Capital commitment for leasehold improvements		16,338
Capital commitment for investments		10,064

		29,761

Contingent liabilities

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

Noncontrolling Interests

12 Months Ended

May 31, 2017

Noncontrolling Interest [Abstract]

Noncontrolling Interests

19.

NONCONTROLLING INTERESTS


	Koolearn Corporation			Xuncheng			New Road			Jinzhou School			Dongfangyoubo			Ainuoshida			Total
	US$			US$			US$			US$			US$			US$			US$
Balance as of May 31, 2015		3,458			—			38			—			—			—			3,496
Capital injection from noncontrolling interests shareholders		—			28,737			—			182			—			—			28,919
Capital repurchase from noncontrolling interests shareholders		(3,497	)		—			—			—			—			—			(3,497	)
Unrealized gain on available-for-sale investment attributed to noncontrolling interests shareholders		—			999			—			—			—			—			999
Foreign currency translation adjustment attributed to noncontrolling interest shareholders		—			(269	)		(2	)		—			—			—			(271	)
Net income (loss) attributed to noncontrolling interests shareholders		39			423			3			(21	)		—			—			444

Balance as of May 31, 2016		—			29,890			39			161			—			—			30,090
Capital injections from noncontrolling interests shareholders		—			3,348			—			—			576			—			3,924
Addition of noncontrolling interests in connection with acquisition		—			—			—			—			—			3,909			3,909
Unrealized gain on available-for-sale investment attributed to noncontrolling interests shareholders		—			(23	)		—			—			—			—			(23	)
Foreign currency translation adjustment attributed to noncontrolling interests shareholders		—			(1,118	)		(2	)		(4	)		2			13			(1,109	)
Net income (loss) attributed to noncontrolling interests shareholders		—			4,454			(1	)		(176	)		(254	)		(1,684	)		2,339

Balance as of May 31, 2017		—			36,551			36			(19	)		324			2,238			39,130

The schedule below discloses the effects of changes in the Company’s ownership interest on the Company’s equity:


	Year Ended May 31,
	2016		2017
	US$		US$
Net income attribute to New Oriental Education & Technology Group Inc.		224,884		274,457
Increase in the Group’s additional paid-in capital resulting from capital injection of Dongfangyoubo’s noncontrolling interests shareholders		—		138
Increase in the Group’s additional paid-in capital resulting from capital injection of Xuncheng’s noncontrolling interests shareholders		39,579		4,733
Decrease in the Group’s additional paid-in capital resulting from capital repurchase from Xuncheng’s noncontrolling interests shareholders		—		(5,412	)
Increase in the Group’s additional paid-in capital resulting from transferring Xuncheng’s common shares to noncontrolling interests shareholders				5,704

Changes from net income attributable to New Oriental Education & Technology Group Inc. shareholders and transfers from/to noncontrolling interests		264,463		279,620

(1)

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

(2)

In November 2015, the Group sold a 21% ownership of Xuncheng to seven limited partnership entities (“LPs”) representing the employees of the Group. In April 2016, another 12.5% ownership of Xuncheng was sold to Lin Zhi Tencent Technology Co., Ltd an affiliate of Tencent Holdings Limited. All the cash consideration was fully paid by the other investors as of May 31, 2016. In June 2016, the Group further sold 1.7% ownership of Xuncheng to 8 market makers. In December 2016, the Group repurchased 1.3% from 6 market makers aforementioned and sold it to another 4 market makers again in May 2017. As of May 31, 2017, the equity interest owned by the Group in Xuncheng was diluted to 68%.

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

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

(5)	In June 2016, Dongfangyouba which provides live broadcast lesson service, was established. The Company and another investor have 51% and 49% equity interest, respectively. The cash consideration was fully paid by the other investor as of May 31, 2017.

(6)	In December 2016, the Group purchased an additional 33% of Ainuoshida resulting in the Group controlling Ainuoshida through 51% ownership. See Note 3 for additional details.

Segment Information

12 Months Ended

May 31, 2017

Segment Reporting [Abstract]

Segment Information

20.

SEGMENT INFORMATION

The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Group. During the year ended May 31, 2015, the Group identified six operating segments, including language training and test preparation, primary and secondary school education, online education, content development and distribution, pre-school education and overseas study consulting services. During the year 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, 2017 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, 2015


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

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

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

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

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

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

For the year ended May 31, 2016


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

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

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

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

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

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

For the year ended May 31, 2017


	Language			Primary and
	training and test			secondary
	preparation courses			education			Others			Consolidated
	US$			US$			US$			US$
Net revenues		1,510,497			30,782			258,230			1,799,509

Operating costs and expenses:
Cost of revenues		(623,364	)		(10,465	)		(115,757	)		(749,586	)
Selling and marketing		(146,544	)		(1,347	)		(60,572	)		(208,463	)
General and administrative		(363,949	)		(11,317	)		(63,406	)		(438,672	)
Unallocated corporate expenses		—			—			—			(140,639	)

Total operating costs and expenses		(1,133,857	)		(23,129	)		(239,735	)		(1,537,360	)

Operating income		376,640			7,653			18,495			262,149

Segment assets		1,361,261			79,655			527,300			1,968,216
Unallocated corporate assets		—			—			—			956,763

Total assets		1,361,261			79,655			527,300			2,924,979

Mainland China Contribution Plan

12 Months Ended

May 31, 2017

Mainland China Contribution Plan

21.

MAINLAND CHINA CONTRIBUTION PLAN

The Group’s full time employees in the PRC participate in a government-mandated multiemployer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. The total contributions for such employee benefits were US$61,448, US$71,434 and US$89,709 for the years ended May 31, 2015, 2016 and, 2017, respectively.

Statutory Reserve

12 Months Ended

May 31, 2017

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, 2015, 2016 and 2017, US$530, US$695 and US$1,749 was accrued for the general reserve, respectively.

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, 2015, 2016 and 2017, appropriations to the development fund amounted to US$23,212, US$31,158 and US$33,529, respectively.

These reserves are included as statutory reserves in the consolidated statements of changes in equity and comprehensive income. The Group allocated US$23,742, US$31,853 and US$ 35,278 to statutory reserves during the years ended May 31, 2015, 2016 and 2017, respectively. The statutory reserves cannot be transferred to the Company in the form of loans or advances and are not distributable as cash dividends except in the event of liquidation.

Restricted Net Assets

12 Months Ended

May 31, 2017

Receivables [Abstract]

Restricted Net Assets

23.

RESTRICTED NET ASSETS

Relevant PRC laws and regulations restrict the WFOEs and VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserves and their share capital, to the Company in the form of loans, advances or cash dividends. The balance of restricted net assets was US$358,956 and US$488,560, of which US$292,542 and US$425,927 was attributed to the paid in capital, additional paid-in capital and statutory reserves of the VIEs and US$66,414 and US$62,633was attributed to the paid in capital, additional paid-in capital and statutory reserves of the WFOEs, as of May 31, 2016 and 2017, 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, 2017

Subsequent Events [Abstract]

Subsequent Events

24.

SUBSEQUENT EVENTS

On July 26, 2017, the Group’s board of directors has declared a special cash dividend in the amount of US$0.45 per ADS/common share. The cash dividend will be paid on October 6, 2017 to shareholders of record at the close of business on September 6, 2017. The ex-dividend date will be September 1, 2017. The aggregate amount of cash dividends to be paid is approximately US$70.0 million, which will be funded by surplus cash on the Company’s consolidated balance sheets.

Schedule I - Condensed Financial Information of Parent Company

12 Months Ended

May 31, 2017

Schedule I - Condensed Financial Information of Parent Company

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company

Balance Sheets

(In thousands, except share and share data)


	As of May 31,
	2016			2017
	US$			US$
ASSETS
Current assets:
Cash and cash equivalents		11,984			11,472
Term deposit		10,000			10,000
Prepaid expense and other current assets		5,900			210
Amounts due from related parties		16,758			—

Total current assets		44,642			21,682
Amounts due from related parties		—			56,965
Long-term investments		96,498			120,260
Investments in subsidiaries and VIEs		1,353,090			1,569,358

Total assets		1,494,230			1,768,265

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other current liabilities		6,016			3,675
Amounts due to related parties		83,642			83,642

Total current liabilities		89,658			87,317

Equity:
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2016 and 2017; 158,379,387 shares issued as of May 31, 2016 and 2017; 157,439,397 and 157,687,444 shares outstanding as of May 31, 2016 and 2017, respectively)		1,584			1,584
Treasury stock		(9	)		(7	)
Additional paid-in capital		223,422			249,126
Retained earnings		1,116,627			1,391,084
Accumulated other comprehensive income		62,948			39,161

Total shareholders’ equity		1,404,572			1,680,948

Total liabilities and equity		1,494,230			1,768,265

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED MAY 31, 2015, 2016 AND 2017

(In thousands, except share and per share data, or otherwise noted)

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company

Statements of Operations

(In thousands)


	Years ended May 31,
	2015			2016			2017
	US$			US$			US$
Operating costs and expenses:
General and administrative		12,963			16,732			18,236

Total operating costs and expenses		12,963			16,732			18,236

Operating loss		(12,963	)		(16,732	)		(18,236	)
Interest income		2			1			122
Equity in earnings of subsidiaries and VIEs		205,974			241,615			292,571

Net income		193,013			224,884			274,457

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED MAY 31, 2015, 2016 AND 2017

(In thousands, except share and per share data, or otherwise noted)

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company

Statements of Comprehensive Income

(In thousands)


	Years ended May 31,
	2015		2016			2017
	US$		US$			US$
Net income		193,013		224,884			274,457

Other comprehensive income, net of tax
Foreign currency translation adjustment		12,006		(72,193	)		(46,331	)
Unrealized gain on available-for-sale investment, net of tax effect of nil, nil and nil for years ended May 31, 2015, 2016 and 2017		21,940		35,636			22,544

Other comprehensive income/ (loss)		33,946		(36,557	)		(23,787	)

Comprehensive income attributable to New Oriental Education & Technology Group Inc.		226,959		188,327			250,670

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED MAY 31, 2015, 2016 AND 2017

(In thousands, except share and per share data, or otherwise noted)

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company Statements of Changes in Equity

(In thousands, except share data)


	Common shares					Additional paid-in 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, 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 restructure 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

Reissuance of Treasury stock for the exercises of employee share options		48,047			—		256			—			—			—			256
Reissuance of Treasury stock for Non-vested equity shares vested		200,000			—		(2	)		2			—			—			—
Share based compensation expense		—			—		20,287			—			—			—			20,287
Net income		—			—		—			—			274,457			—			274,457
Capital injection of noncontrolling interests		—			—		4,871			—			—			—			4,871
NCI transactions in Xuncheng		—			—		74			—			—			—			74
Capital injection in Taiyanggong Kindergarten		—			—		218			—			—			—			218
Foreign currency translation adjustment		—			—		—			—			—			(46,331	)		(46,331	)
Unrealized gain on available-for-sale investment, net of tax effect of nil		—			—		—			—			—			22,544			22,544

Balance at May 31, 2017		157,687,444			1,584		249,126			(7	)		1,391,084			39,161			1,680,948

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED MAY 31, 2015, 2016 AND 2017

(In thousands, except share and per share data, or otherwise noted)

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company

Statements of Cash Flows

(In thousands)


	Years ended May 31,
	2015			2016			2017
	US$			US$			US$
Cash flows from operating activities:
Net income		193,013			224,884			274,457
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Equity in earnings of subsidiaries		(205,974	)		(241,615	)		(292,571	)
Dividend received from subsidiaries		—			49,984			43,417
Share-based compensation expense		15,689			16,810			20,287
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(2,613	)		5,135			5,404
Accrued expenses and other current liabilities		(2,728	)		(3,673	)		(2,341	)
Amounts due from/to related parties		(762	)		(1,446	)		(40,207	)

Net cash (used in) provided by operating activities		(3,375	)		50,079			8,446

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

Net cash used in investing activities		(16,723	)		(8,961	)		(9,500	)

Cash flows from financing activities:
Proceeds from issuance of common shares upon exercise of share options		11,332			2,176			542
Loan from a related party		75,060			8,610			—
Cash paid for shares repurchase		(59,420	)		—			—
Cash paid for dividend		—			(62,668	)		—

Net cash provided by (used in) financing activities		26,972			(51,882	)		542

Net increase / (decrease) in cash and cash equivalents		6,874			(10,764	)		(512	)
Cash and cash equivalents, beginning of year		15,874			22,748			11,984

Cash and cash equivalents, end of year		22,748			11,984			11,472

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED MAY 31, 2015, 2016 AND 2017

(In thousands, except share and per share data, or otherwise noted)

Additional Information - Financial Statement Schedule I

Condensed Financial Information of Parent Company

Note to the Financial Statements

1.	BASIS FOR PREPARATION

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

2.	INVESTMENTS IN SUBSIDIARIES AND VIEs

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

3.	INCOME TAXES

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

4.	RELATED-PARTY TRANSACTIONS

The following represented related party balances as of May 31, 2016 and 2017:


	May 31,
	2016		2017
	US$		US$
Amount due from related parties:
Winner Park		12		12
Abundant State Limited		—		40,000
Elite Concept Holdings Limited		9,897		10,104
Koolearn Holdings Limited		180		180
New Oriental China		6,669		6,669

		16,758		56,965

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

		83,642		83,642

All related party balances were non-interest bearing and unsecured. The amount due to related parties will be paid based on demand.

- Definition

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, 2017

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,
	2016			2017
	US$			US$
Beginning balance		801			408
Charge during the year		235			354
Written-off		(628	)		(177	)

Ending balance		408			585

Inventory

Inventories of the Group are mainly consisted of books. Inventories are stated at the lower of cost or net realizable value.

Land use rights

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

Property and equipment


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 Investments

(c)

Available-for-sale Investments

Long-term Held-to-maturity Investments

(d)

Long-term Held-to-maturity Investments

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

The Group measured its financial assets and liabilities primarily including available-for-sale securities at fair value on a recurring basis as of May 31, 2016 and 2017.


	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


	May 31, 2017
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		36,406		—		—		36,406
Redeemable preferred shares		—		30,669		123,029		153,698
Asset management plan and trust		—		7,486		—		7,486

Total		36,406		38,155		123,029		197,590

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

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 investments
	US$
Balance at June 1, 2015		—
Transfer from level 2 fair value measurements		63,881
Initial recognition		2,844
Unrealized gain		3,148

Balance at May 31, 2016		69,873

Transfer from level 2 fair value measurements		31,505
Initial recognition		—
Unrealized gain		21,651

Balance at May 31, 2017		123,029

Measured fair value on a nonrecurring basis

Goodwill and other intangible assets are measured at fair value on a nonrecurring basis when an impairment is recognized.

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.

The Group plans to adopt the ASU on June 1, 2018, and is in the process of evaluating the impact to its consolidated financial statements.

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;

•

Organization and Principal Activities (Tables)

12 Months Ended

May 31, 2017

Details of Company's Subsidiaries and VIE and Its Subsidiaries

As of May 31, 2017, details of the Company’s subsidiaries, variable interest entity and its schools and subsidiaries were as follows:

Name

Date of
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

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”)

April 12, 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 Jinghong Software Technology Company Limited (“Beijing Jinghong”)

September 18, 2016

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

Elite Concept Holdings Limited (“Elite Concept”)

December 3, 2007

Hong Kong

100%

Educational Consulting

Winner Park Limited (“Winner Park”)

December 9, 2008

Hong Kong

100%

Educational Consulting

Smart Shine International Limited (“Smart Shine”)

December 9, 2008

Hong Kong

100%

Educational Consulting

Abundant State Limited (“Abundant”)

March 20, 2013

BVI

100%

Educational Consulting

Koolearn Holding Limited (“Koolearn HK”)

June 21, 2013

Hong Kong

100%

Educational Consulting

New Oriental Vision Overseas Consulting Australia Pty Ltd.

January 25, 2017

Australia

100%

Consulting

Variable interest entity of the Company:

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

August 2, 2001

PRC

N/A

Education consulting,
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

Xi’an Yanta District New Oriental School

November 26, 2002

PRC

N/A

Language education

Nanjing Gulou New Oriental Advanced Study School

November 28, 2002

PRC

N/A

Language education

Shenzhen New Oriental Training School

October 15, 2003

PRC

N/A

Language education

Shenyang New Oriental Foreign Language Training School

June 18, 2003

PRC

N/A

Language education

Chongqing New Oriental Training School

August 15, 2003

PRC

N/A

Language education

Chengdu New Oriental School

August 18, 2003

PRC

N/A

Language education

Xiangyang New Oriental Training School

October 26, 2004

PRC

N/A

Language education

Changsha Furong District New Oriental Training School

May 25, 2005

PRC

N/A

Language education

Jinan New Oriental School

May 31, 2005

PRC

N/A

Language education

Taiyuan New Oriental Training School

April 20, 2005

PRC

N/A

Language education

Ha’er Bin Nangang District New Oriental Training School

May 20, 2005

PRC

N/A

Language education

Changchun New Oriental Training School

July 26, 2005

PRC

N/A

Language education

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

July 21, 2005

PRC

N/A

Language education

Hangzhou New Oriental Education & Consulting Company Limited

May 8, 2012

PRC

N/A

Language education

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

October 22, 2012

PRC

N/A

Language education

Zhengzhou New Oriental Training School

July 19, 2005

PRC

N/A

Language education

Zhuzhou New Oriental Training School

April 30, 2006

PRC

N/A

Language education

Shijiazhuang New Oriental School

April 3, 2006

PRC

N/A

Language education

Suzhou New Oriental School

April 26, 2006

PRC

N/A

Language education

Anshan New Oriental Training School

June 13, 2006

PRC

N/A

Language education

Schools and subsidiaries of New Oriental China:

Hefei New Oriental Foreign Language Training School

June 13, 2006

PRC

N/A

Language education

Yunnan New Oriental Training School

June 13, 2006

PRC

N/A

Language education

Wuxi New Oriental Advanced Study School

August 14, 2006

PRC

N/A

Language education

Fuzhou Gulou District New Oriental Training School

September 1, 2006

PRC

N/A

Language education

Nanchang Donghu District New Oriental Language School

March 16, 2007

PRC

N/A

Language education

Yichang Xiling District New Oriental School

January 1, 2006

PRC

N/A

Language education

Jingzhou New Oriental School

April 10, 2007

PRC

N/A

Language education

Dalian New Oriental Training School

June 12, 2007

PRC

N/A

Language education

Huangshi New Oriental Training School

March 17, 2008

PRC

N/A

Language education

Ningbo New Oriental School

April 16, 2008

PRC

N/A

Language education

Lanzhou Chengguan District New Oriental School

March 19, 2008

PRC

N/A

Language education

Xiamen Siming District New Oriental Education Training School

July 8, 2008

PRC

N/A

Language education

Qingdao New Oriental Language Training School

August 5, 2008

PRC

N/A

Language education

Nanning New Oriental Education Training School

September 18, 2008

PRC

N/A

Language education

Xuzhou New Oriental Advanced Study School

March 31, 2009

PRC

N/A

Language education

Xiangtan Yuhu District New Oriental School

July 15, 2010

PRC

N/A

Language education

Zhenjiang New Oriental School

July 19, 2010

PRC

N/A

Language education

Luoyang New Oriental School

November 25, 2010

PRC

N/A

Language education

Nantong Chongchuan District New Oriental School

December 28, 2010

PRC

N/A

Language education

Jilin Chuanying District New Oriental School

March 17, 2011

PRC

N/A

Language education

Guiyang Yunyan District New Oriental School

March 21, 2011

PRC

N/A

Language education

Inner Mongolia Hohhot New Oriental School

April 2, 2011

PRC

N/A

Language education

Foshan New Oriental School

September 1, 2011

PRC

N/A

Language education

Tangshan Lubei District New Oriental School

May 25, 2011

PRC

N/A

Language education

Urumqi New Oriental School

May 22, 2011

PRC

N/A

Language education

Shiyan New Oriental School

May 23, 2011

PRC

N/A

Language education

Quanzhou Fengze District New Oriental Education Training School

June 26, 2015

PRC

N/A

Language education

Wenzhou New Oriental School

August 14, 2015

PRC

N/A

Language education

Weifang New Oriental Training School

October 10, 2015

PRC

N/A

Language education

Shanghai New Oriental Education & Training Company Limited

September 15, 2015

PRC

N/A

Language education

Zhuhai Xiangzhou District New Oriental Training Centre

December 11, 2015

PRC

N/A

Language education

Yangzhou Guangling District New Oriental Training Centre

March 24, 2016

PRC

N/A

Language education

Jinzhou New Oriental Training School

April 19, 2016

PRC

N/A

Language education

Baoding Jingxiu District New Oriental Training School

July 8, 2016

PRC

N/A

Language education

Taian New Oriental School

September 9, 2016

PRC

N/A

Language education

Chongqing Yongchuan District New Oriental Training School

September 25, 2016

PRC

N/A

Language education

Yantai Zhifu District New Oriental Foreign LanguageTraining School

November 11, 2016

PRC

N/A

Language education

Kaifeng New Oriental Education Information Consulting Co., Ltd.

October 31, 2016

PRC

N/A

Language education

Beijing Shengdeweixin Education & Technology Co., Ltd.

November 22, 2016

PRC

N/A

Language education

Cangzhou Yunhe District New Oriental Education Training School

November 29, 2016

PRC

N/A

Language education

Qinghuangdao Haigang District New Oriental Training School

January 17, 2017

PRC

N/A

Language education

Zhangzhou Development Zone New Oriental Education Training School

March 22, 2017

PRC

N/A

Language education

Anyang Beiguan District New Oriental Education Training School

May 16, 2017

PRC

N/A

Language education

Nanyang New Oriental Education Training Co., Ltd.

April 19, 2017

PRC

N/A

Language education

Handan Congtai District New Oriental Training School

April 27, 2017

PRC

N/A

Language education

Beijing Shuangshi Oriental Education & Technology Co., Ltd.

April 27, 2017

PRC

N/A

Educational consulting

Changchun Tongwen Gaokao Training School (“Tongwen Gaokao”)

October 27, 2008

PRC

N/A

College admission

examination training

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

October 27, 2008

PRC

N/A

Primary secondary
school education

China Management Software Institute (“CMSI”)

September 1, 2012

PRC

N/A

Higher education

Schools and subsidiaries of New Oriental China:

Beijing New Oriental Yangzhou Foreign Language School

June 6, 2002

PRC

N/A

Primary secondary
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

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

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

Schools and subsidiaries of New Oriental China:

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

October 28, 2008

PRC

N/A

Sales of educational
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

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

February 7, 2012

PRC

N/A

Sales of educational
materials and products

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

September 28, 2016

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

Shaanxi New Oriental Vision Overseas Consultancy Co., Ltd.

January 23, 2015

PRC

N/A

Consulting

Tianjin New Oriental Vision Overseas Consultancy Co., Ltd.

May 13, 2015

PRC

N/A

Consulting

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

May 29, 2015

PRC

N/A

Consulting

Liaoning New Oriental Vision Overseas Consultancy Co., Ltd.

June 10, 2015

PRC

N/A

Consulting

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

June 10, 2015

U.K.

N/A

Consulting

Gansu New Oriental Vision Overseas Consultancy Co., Ltd.

May 15, 2015

PRC

N/A

Consulting

Qingdao New Oriental Vision Overseas Consultancy Co., Ltd.

August 20, 2015

PRC

N/A

Consulting

Hunan New Oriental Vision Overseas Consultancy Co., Ltd.

November 3, 2015

PRC

N/A

Consult

ing

Beijing New Oriental Vision Overseas Service Co., Ltd.

February 24, 2016

PRC

N/A

Consulting

Beijing Ainuoshida Education & Technology Co., Ltd and its subsidiaries

September 24, 2014

PRC

N/A

Consulting

Schools and subsidiaries of New Oriental China:

Beijing New Oriental Dogwood Advertisement Co., Ltd. (“Dogwood Advertisement”)

January 20, 2004

PRC

N/A

Advertising

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

March 11, 2005

PRC

N/A

On-line education

Beijing New Oriental Kuxuehuisi Network Technology Co., Ltd.

February 1, 2013

PRC

N/A

On-line education

Beijing DongFangYouBo Network Technology Co., Ltd.

June 23, 2016

PRC

N/A

On-line education

Leci Internet Technology (Beijing) Company Limited (“Leci Internet”)

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

Ningbo Meishan Bonded Port Area Hexin Oriental Asset Management Co., Ltd.

April 28, 2017

PRC

N/A

Asset management

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

March 4, 2015

PRC

N/A

Educational consulting

Beijing Aixuehuisi Education & Technology Co., Ltd.

January 6, 2015

PRC

N/A

Technology

Beijing Fishpond Software Technology Co., Ltd.

November 24, 2015

PRC

N/A

Technology

Beijing Bright the Future Education & Technology Co., Ltd.

July 18, 2016

PRC

N/A

Consulting

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

July 11, 2007

PRC

N/A

Kindergarten

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

November 20, 2007

PRC

N/A

Kindergarten

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

April 10, 2009

PRC

N/A

Kindergarten

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

August 21, 2014

PRC

N/A

Kindergarten

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

December 4, 2014

PRC

N/A

Kindergarten

Qingdao Happy Alice Kindergarten (“Qingdao Happy Alice”)

November 29, 2005

PRC

N/A

Kindergarten

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

October 30, 2014

PRC

N/A

Kindergarten

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

January 20, 2017

PRC

N/A

Kindergarten

(a)

(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,
	2016		2017
	US$		US$
Total current assets		1,262,811		1,590,750
Total non-current assets		381,262		488,709

Total assets		1,644,073		2,079,459

Total current liabilities		860,877		1,137,288
Total non-current liabilities		1,432		2,174

Total liabilities		862,309		1,139,462


	Years ended May 31,
	2015			2016			2017
	US$			US$			US$
Net revenues		1,221,101			1,443,851			1,777,864
Net income		265,485			313,828			333,456
Net cash provided by operating activities		357,893			450,848			450,196
Net cash used in investing activities		(167,847	)		(286,235	)		(459,532	)
Net cash provided by financing activities		—			69,747			8,807

- Definition

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

+ References + Details

Significant Accounting Policies (Tables)

12 Months Ended

May 31, 2017

Changes in Allowance for Doubtful Accounts

Changes in the allowance for doubtful accounts were as follows:


	As of May 31,
	2016			2017
	US$			US$
Beginning balance		801			408
Charge during the year		235			354
Written-off		(628	)		(177	)

Ending balance		408			585

Estimated Useful Lives of Assets

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


Buildings			20-50 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, 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


	May 31, 2017
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		36,406		—		—		36,406
Redeemable preferred shares		—		30,669		123,029		153,698
Asset management plan and trust		—		7,486		—		7,486

Total		36,406		38,155		123,029		197,590

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

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


	Available-for-sale investments
	US$
Balance at June 1, 2015		—
Transfer from level 2 fair value measurements		63,881
Initial recognition		2,844
Unrealized gain		3,148

Balance at May 31, 2016		69,873

Transfer from level 2 fair value measurements		31,505
Initial recognition		—
Unrealized gain		21,651

Balance at May 31, 2017		123,029

Business Acquisitions (Tables)

12 Months Ended

May 31, 2017

Qingdao Alice [Member]

Purchase Price Allocation

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


	US$			Amortization 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

Ainuoshida [Member]

Purchase Price Allocation

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


	US$			Amortization period
Cash		2,499
Other current assets		4,874
Property, plant and equipment		493			1-5 years
Intangible assets
Trademark		1,708			10 years
Student base		1,069			1 year
Software		76			3 years
Goodwill		5,516
Other current liabilities		(6,040	)
Deferred tax liabilities		(713	)
Fair value of the 18% equity interest		(1,741	)
Noncontrolling interests		(3,899	)

Total		3,842

Short-Term Investments (Tables)

12 Months Ended

May 31, 2017

Investments, Debt and Equity Securities [Abstract]

Summary of Short-Term Investments

Short-term investments consisted of the following:


	As of May 31,
	2016		2017
	US$		US$
Held-to-maturity investments		819,229		1,312,942

Inventory (Tables)

12 Months Ended

May 31, 2017

Inventory Disclosure [Abstract]

Components of Inventory

Inventory consisted of the following:


	As of May 31,
	2016		2017
	US$		US$
Course materials in schools		5,787		7,419
Publications in bookstores		21,516		24,323

		27,303		31,742

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

May 31, 2017

Components of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


	As of May 31,
	2016		2017
	US$		US$
Prepaid rent		33,135		44,746
Advances to suppliers		23,143		29,358
Interest receivable		9,341		14,005
Rental deposit		7,122		8,355
Receivable from BOCI for the proceeds of exercise of options and withholding tax		5,548		—
Prepaid advertising fees		3,250		4,235
Staff advances (a)		2,829		2,514
Value added taxes recoverable		2,534		2,305
Deposit of advertising & decoration		1,961		1,411
Receivable of social insurance		1,374		1,651
Prepaid property taxes and other taxes		616		947
Others (b)		8,824		9,870

		99,677		119,397

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

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

Property and Equipment, Net (Tables)

12 Months Ended

May 31, 2017

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment, Net

Property and equipment consisted of the following:


	As of May 31,
	2016			2017
	US$			US$
Buildings		146,411			141,477
Transportation equipment		8,553			8,618
Furniture and education equipment		76,492			88,671
Computer equipment and software		40,707			48,385
Leasehold improvements		169,345			216,848

		441,508			503,999
Less: accumulated depreciation		(209,937	)		(235,853	)
Construction in-process		6,127			14,654

		237,698			282,800

Land Use Rights, Net (Tables)

12 Months Ended

May 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Land Use Rights, Net

Land use rights consisted of the following:


	As of May 31,
	2016			2017
	US$			US$
Land use rights		5,178			5,003
Less: accumulated amortization		(1,201	)		(1,307	)
Exchange differences		(71	)		(28	)

Land use rights, net		3,906			3,668

Intangible Assets, Net (Tables)

12 Months Ended

May 31, 2017

Schedule of Intangible Assets

Intangible assets consisted of the following:


	As of May 31,
	2016			2017
	US$			US$
Costs:
Intangible assets with indefinite lives:
Trademark		248			241
Intangible assets with finite lives:
Trademark		1,293			2,976
Courseware		47			122
Student base		1,978			2,995
Favorable lease		713			689
License		415			415

		4,694			7,438

Accumulated amortization:
Trademark		(383	)		(581	)
Courseware		(47	)		(58	)
Student base		(1,404	)		(2,455	)
Favorable lease		(123	)		(199	)
License		(119	)		(140	)

		(2,076	)		(3,433	)

Net carrying amount:
Intangible assets with indefinite lives:
Trademark		248			241
Intangible assets with definite lives:
Trademark		910			2,395
Courseware		—			64
Student base		574			540
Favorable lease		590			490
License		296			275

		2,618			4,005

Goodwill, Net (Tables)

12 Months Ended

May 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Components of Goodwill


	As of May 31,
	2016			2017
	US$			US$
Costs:
Beginning balance		11,194			10,545
Acquisition of Ainuoshida		—			5,516
Exchange differences		(649	)		(296	)

Ending balance		10,545			15,765

Accumulated goodwill impairment loss:
Beginning balance		—			—

Impairment of Tongwen		—			(1,682	)
Ending balance		—			(1,682	)

Goodwill, net		10,545			14,083

Long Term Investments (Tables)

12 Months Ended

May 31, 2017

Investments Schedule [Abstract]

Schedule of Long Term Investments

Long term investments consisted of the following:


	As of May 31,
	2016		2017
	US$		US$
Cost method investments:		1,460		8,132
Equity method investments:
Beijing Dongfangheli Investment and Development Ltd. (“Dongfangheli”) (a)		3,451		2,851
Juesheng Education Group Ltd. (“Juesheng.com”) (b)		3,249		2,881
Suzhou Qingrui Education & Technology Co., Ltd. (“Kouyu100”) (c)		3,261		3,436
Other equity method investments (j)		3,638		2,369
Available-for-sale investments:
Shanghai Golden Education & Training Co. Ltd.(“Golden Finance”) (d)		34,242		44,809
Shanghai ALO7 Technology Co., Ltd.(“Alo7.com”) (e)		29,639		17,370
AVIC Trust Tianqi No.556 (“Trust 556”) (f)		16,037		—
Tarena International, Inc. (“Tarena”) (g)		15,945		25,695
Beijing ShangJiaChongYe Education &Technology Co. Ltd.(“Shangjiachongye”) (h)		12,310		32,644
Beijing ROBOROBO Technology Co. Ltd. (“ROBOROBO”) (i)		9,999		—
Beijing Shengtong Printing Co. Ltd (“Shengtong”) (i)		—		10,711
Other available-for-sale investments (j)		45,632		66,361

		178,863		217,259

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)	As to the other investments, they represent several insignificant investments either classified as equity method investments or available-for-sale investments as of May 31, 2016 and 2017.

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

May 31, 2017

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	As of May 31,
	2016		2017
	US$		US$
Accrued payroll		131,151		157,167
Payable for purchase of property and equipment		11,953		21,445
Amounts reimbursable to employees (a)		8,294		11,022
Individual taxes withholding		8,186		6,454
Refundable fees received from students (b)		5,755		8,687
Business taxes payable		5,259		—
Value-added taxes payable		6,506		9,516
Accrued advertising fees		6,443		7,798
Rent payable		6,285		7,532
Welfare payable		6,004		6,102
Royalty fees payable (c)		3,637		4,011
Refundable deposit (d)		3,161		5,382
Accrued professional service fees		2,352		1,486
Other taxes payable		1,240		1,604
Others (e)		10,818		12,494

Total		217,044		260,700

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

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

(c)	Royalty fees payable related to payments to content providers for on-line 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)	Others primarily included transportation expenses, utility fees, property management fees, and other miscellaneous expenses payable.

Share-Based Compensation (Tables)

12 Months Ended

May 31, 2017

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

Summary of Share Options Granted and NES

The following table summarizes information regarding the share options granted:


Share options	Shares granted		Grant-date 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 granted in fiscal year 2015, 2016 and 2017:


NES	Grant-date Shares granted		Fair Value and Intrinsic value
			US$
Grant date:
July 23, 2014		209,650		21.01
September 29, 2014		24,020		22.32
February 5, 2015		600,000		18.52
July 9, 2015		486,330		22.69
October 19, 2015		60,000		22.45
November 16, 2016		436,016		47.19

Total		1,816,016

Summary of Share Options Activity under 2006 Share Incentive Plan

A summary of share options activity under 2006 Share Incentive Plan for year ended May 31, 2017 is as follows:


	Weighted Number of Options		Weighted- average Exercise Prices		Remaining Contractual Life		Aggregated Intrinsic Value
			US$		years		US$
Options outstanding at May 31, 2016		78,337		6.13		0.58		2,829
Granted		—		—
Exercised		48,047		5.37
Forfeited		23,938		8.75

Options outstanding at May 31, 2017		6,352		2.02		1.58		442

Options vested and expect to vest at May 31, 2017		6,352		2.02		1.58		442

Options exercisable at May 31, 2017		6,352		2.02		1.58		442

Summary of NES Activities under 2006 Share Incentive Plan

A summary of NES activities under 2006 Share Incentive Plan for the year ended May 31, 2017 is as follows:


	Number of NES			Weighted- average grant date fair value and intrinsic value
				US$
NES outstanding at May 31, 2016		400,000			18.91
Granted		436,016			47.19
Vested		(200,000	)		18.91
Forfeited		(4,050	)		47.19

NES outstanding at May 31, 2017		631,966			38.24

NES vested and expect to vest at May 31, 2017		631,966

Income Taxes (Tables)

12 Months Ended

May 31, 2017

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

Significant components of provision for income taxes for the years ended May 31, 2015, 2016 and 2017 were as follows:


	Years ended May 31,
	2015			2016			2017
	US$			US$			US$
Current:
PRC		31,552			39,467			51,142

Deferred:
PRC		(5,331	)		(1,936	)		(518	)

Total provision for income taxes		26,221			37,531			50,624

Components of Group's Deferred Tax Assets and Liabilities

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


	As of May 31,
	2016			2017
	US$			US$
Deferred tax assets, non-current
Allowance doubtful accounts		252			2,017
Accrued expenses		18,427			21,893
Deferred revenue for incentive plan		2,376			233
Net operating loss carry-forward		6,910			8,696

Total deferred tax assets, non-current		27,965			32,839
Less: valuation allowance		(3,624	)		(3,981	)

Net, deferred tax assets, non-current		24,341			28,858

Deferred tax liabilities, non-current
Acquired of non-current assets		1,982			2,220

Total deferred tax liabilities, non-current		1,982			2,220

Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates

A reconciliation of the effective tax rates from the 25% statutory tax rates was as follows for the years ended May 31, 2015, 2016 and 2017:


	Years ended May 31,
	2015			2016			2017
	%			%			%
Statutory tax rate		25.00			25.00			25.00
Effect of expenses not deductible for tax purposes		4.91			4.57			2.03
Effect of tax holiday		(20.82	)		(18.05	)		(13.41	)
Changes in valuation allowance		(0.59	)		0.25			0.11
Effect of dividend withholding tax		3.39			2.27			1.58

Total provision for income taxes		11.89			14.04			15.31

Net Income Per Share (Tables)

12 Months Ended

May 31, 2017

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Share

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


	Years ended May 31,
	2015		2016		2017
	US$		US$		US$
Numerator used in basic and diluted net income per share:
Net income attributable to New Oriental
Education &Technology Group Inc.		193,013		224,884		274,457

Net income available for future distribution		193,013		224,884		274,457

Shares (denominator):
Weighted average common shares outstanding used in computing basic net income per share		156,438,606		156,782,439		157,551,320

Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method		863,568		609,247		435,074

Weighted average common shares outstanding used in computing diluted net income per share		157,302,174		157,391,686		157,986,394

Net income per share
- Basic		1.23		1.43		1.74
- Diluted		1.23		1.43		1.74

Related-Parties Transactions (Tables)

12 Months Ended

May 31, 2017

Balances and Transaction with Related Parties

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

Balances:


			Amounts due from related parties, non-current As of May 31,
	Notes	Relationship	2016		2017
			US$		US$
Metropolis Holding China Limited	(1)	Company controlled by the executive Chairman		1,741		1,064
MaxEn		Joint Venture		—		684

				1,741		1,748


				Amounts due from related parties, current As of May 31,				Amounts due to related parties, current As of May 31,
	Notes	Relationship		2016		2017		2016		2017
				US$		US$		US$		US$
Metropolis Holding China Limited	(1)		Company controlled by the executive Chairman		637		1,895		—		—
MaxEn			Joint Venture		812		—		13		12
Beijing Haiwei Career Services Co., Ltd (“Haiwei Career”)	(2)		Joint Venture		1,553		3,965		—		—
Dianshijingwei	(3)		Long-term investee		1,520		—		—		—
Others	(4)				17		88		29		36

Total					4,539		5,948		42		48


Transactions:						Rental expense For the years ended May 31
						2015		2016		2017
						US$		US$		US$
Metropolis Holding China Limited	(1)		Company controlled by the Executive Chairman				5,298		7,139		6,790


						Loan to related parties For the years ended May 31
						2015		2016		2017
						US$		US$		US$
Haiwei Career	(2)		Joint Venture				—		1,520		3,965
Beijing Weixuemingri Network Technology Co., Ltd. (“Weixuemingri”)	(5)		Joint Venture				—		998		1,733
Great Thanks Holdings Limited			Company established by the shareholder of the Joint Venture				—		—		1,450

Total							—		2,518		7,148


						Revenue For the years ended May 31
						2015		2016		2017
						US$		US$		US$
MaxEn			Joint Venture				—		177		—
Beijing Tongban Education & Technology Co., Ltd (“Tongban”)			Long-term investee				—		3		12
STEMedu.cn			Long-term investee				—		11		60
Goldern Finance			Long-term investee				—		—		18

Total							—		191		90


Transactions:		Cost For the years ended May 31
		2015		2016		2017
		US$		US$		US$
STEMedu.cn	Long-term investee		—		30		23

(1)

(2)

(3)	As of May 31, 2016, the amount due from Dianshijingwei represented the non-interest bearing loan provided by the Group before the disposal of Dianshijingwei to support its daily operation. As of May 31, 2017, the Group had collected the loans from Dianshijingwei.

(4)	As of May 31, 2017, the balance in “others” included the current receivables from long-term investees of Tongban, Goldern Finance and etc.

(5)	As of May 31, 2017, the amount due from Weixue Mingri represented the non-interest bearing loans provided by the Group to support its daily operation and the outstanding loans were fully wrote off by the Group.

Parent Company [Member]

Balances and Transaction with Related Parties

The following represented related party balances as of May 31, 2016 and 2017:


	May 31,
	2016		2017
	US$		US$
Amount due from related parties:
Winner Park		12		12
Abundant State Limited		—		40,000
Elite Concept Holdings Limited		9,897		10,104
Koolearn Holdings Limited		180		180
New Oriental China		6,669		6,669

		16,758		56,965

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

		83,642		83,642

Commitments and Contingencies (Tables)

12 Months Ended

May 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Lease Payments under Non-Cancelable Operating Leases


	US$
Years ended May 31:
2018		204,996
2019		185,059
2020		157,333
2021		123,894
2022		83,329
Thereafter		88,611

		843,222

Future Minimum Capital Commitments under Non-Cancelable Construction and Investments

As of May 31, 2017, future minimum capital commitments under non-cancelable construction and investments were as follows:


	US$
Capital commitment for the purchase of property and equipment		3,359
Capital commitment for leasehold improvements		16,338
Capital commitment for investments		10,064

		29,761

Noncontrolling Interests (Tables)

12 Months Ended

May 31, 2017

Noncontrolling Interest [Abstract]

Summary of Changes in Noncontrolling Interest


	Koolearn Corporation			Xuncheng			New Road			Jinzhou School			Dongfangyoubo			Ainuoshida			Total
	US$			US$			US$			US$			US$			US$			US$
Balance as of May 31, 2015		3,458			—			38			—			—			—			3,496
Capital injection from noncontrolling interests shareholders		—			28,737			—			182			—			—			28,919
Capital repurchase from noncontrolling interests shareholders		(3,497	)		—			—			—			—			—			(3,497	)
Unrealized gain on available-for-sale investment attributed to noncontrolling interests shareholders		—			999			—			—			—			—			999
Foreign currency translation adjustment attributed to noncontrolling interest shareholders		—			(269	)		(2	)		—			—			—			(271	)
Net income (loss) attributed to noncontrolling interests shareholders		39			423			3			(21	)		—			—			444

Balance as of May 31, 2016		—			29,890			39			161			—			—			30,090
Capital injections from noncontrolling interests shareholders		—			3,348			—			—			576			—			3,924
Addition of noncontrolling interests in connection with acquisition		—			—			—			—			—			3,909			3,909
Unrealized gain on available-for-sale investment attributed to noncontrolling interests shareholders		—			(23	)		—			—			—			—			(23	)
Foreign currency translation adjustment attributed to noncontrolling interests shareholders		—			(1,118	)		(2	)		(4	)		2			13			(1,109	)
Net income (loss) attributed to noncontrolling interests shareholders		—			4,454			(1	)		(176	)		(254	)		(1,684	)		2,339

Balance as of May 31, 2017		—			36,551			36			(19	)		324			2,238			39,130

Schedule of Effects of Changes in Ownership Interest on Equity

The schedule below discloses the effects of changes in the Company’s ownership interest on the Company’s equity:


	Year Ended May 31,
	2016		2017
	US$		US$
Net income attribute to New Oriental Education & Technology Group Inc.		224,884		274,457
Increase in the Group’s additional paid-in capital resulting from capital injection of Dongfangyoubo’s noncontrolling interests shareholders		—		138
Increase in the Group’s additional paid-in capital resulting from capital injection of Xuncheng’s noncontrolling interests shareholders		39,579		4,733
Decrease in the Group’s additional paid-in capital resulting from capital repurchase from Xuncheng’s noncontrolling interests shareholders		—		(5,412	)
Increase in the Group’s additional paid-in capital resulting from transferring Xuncheng’s common shares to noncontrolling interests shareholders				5,704

Changes from net income attributable to New Oriental Education & Technology Group Inc. shareholders and transfers from/to noncontrolling interests		264,463		279,620

Segment Information (Tables)

12 Months Ended

May 31, 2017

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

For the year ended May 31, 2015


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

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

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

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

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

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

For the year ended May 31, 2016


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

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

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

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

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

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

For the year ended May 31, 2017


	Language			Primary and
	training and test			secondary
	preparation courses			education			Others			Consolidated
	US$			US$			US$			US$
Net revenues		1,510,497			30,782			258,230			1,799,509

Operating costs and expenses:
Cost of revenues		(623,364	)		(10,465	)		(115,757	)		(749,586	)
Selling and marketing		(146,544	)		(1,347	)		(60,572	)		(208,463	)
General and administrative		(363,949	)		(11,317	)		(63,406	)		(438,672	)
Unallocated corporate expenses		—			—			—			(140,639	)

Total operating costs and expenses		(1,133,857	)		(23,129	)		(239,735	)		(1,537,360	)

Operating income		376,640			7,653			18,495			262,149

Segment assets		1,361,261			79,655			527,300			1,968,216
Unallocated corporate assets		—			—			—			956,763

Total assets		1,361,261			79,655			527,300			2,924,979

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

12 Months Ended

May 31, 2017

Condensed Financial Information of Parent Company - Balance Sheets

Condensed Financial Information of Parent Company

Balance Sheets

(In thousands, except share and share data)


	As of May 31,
	2016			2017
	US$			US$
ASSETS
Current assets:
Cash and cash equivalents		11,984			11,472
Term deposit		10,000			10,000
Prepaid expense and other current assets		5,900			210
Amounts due from related parties		16,758			—

Total current assets		44,642			21,682
Amounts due from related parties		—			56,965
Long-term investments		96,498			120,260
Investments in subsidiaries and VIEs		1,353,090			1,569,358

Total assets		1,494,230			1,768,265

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other current liabilities		6,016			3,675
Amounts due to related parties		83,642			83,642

Total current liabilities		89,658			87,317

Equity:
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2016 and 2017; 158,379,387 shares issued as of May 31, 2016 and 2017; 157,439,397 and 157,687,444 shares outstanding as of May 31, 2016 and 2017, respectively)		1,584			1,584
Treasury stock		(9	)		(7	)
Additional paid-in capital		223,422			249,126
Retained earnings		1,116,627			1,391,084
Accumulated other comprehensive income		62,948			39,161

Total shareholders’ equity		1,404,572			1,680,948

Total liabilities and equity		1,494,230			1,768,265

Condensed Financial Information of Parent Company - Statements of Operations

Condensed Financial Information of Parent Company

Statements of Operations

(In thousands)


	Years ended May 31,
	2015			2016			2017
	US$			US$			US$
Operating costs and expenses:
General and administrative		12,963			16,732			18,236

Total operating costs and expenses		12,963			16,732			18,236

Operating loss		(12,963	)		(16,732	)		(18,236	)
Interest income		2			1			122
Equity in earnings of subsidiaries and VIEs		205,974			241,615			292,571

Net income		193,013			224,884			274,457

Condensed Financial Information of Parent Company - Statements of Comprehensive Income

Condensed Financial Information of Parent Company

Statements of Comprehensive Income

(In thousands)


	Years ended May 31,
	2015		2016			2017
	US$		US$			US$
Net income		193,013		224,884			274,457

Other comprehensive income, net of tax
Foreign currency translation adjustment		12,006		(72,193	)		(46,331	)
Unrealized gain on available-for-sale investment, net of tax effect of nil, nil and nil for years ended May 31, 2015, 2016 and 2017		21,940		35,636			22,544

Other comprehensive income/ (loss)		33,946		(36,557	)		(23,787	)

Comprehensive income attributable to New Oriental Education & Technology Group Inc.		226,959		188,327			250,670

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

Condensed Financial Information of Parent Company Statements of Changes in Equity

(In thousands, except share data)


	Common shares					Additional paid-in 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, 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 restructure 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

Reissuance of Treasury stock for the exercises of employee share options		48,047			—		256			—			—			—			256
Reissuance of Treasury stock for Non-vested equity shares vested		200,000			—		(2	)		2			—			—			—
Share based compensation expense		—			—		20,287			—			—			—			20,287
Net income		—			—		—			—			274,457			—			274,457
Capital injection of noncontrolling interests		—			—		4,871			—			—			—			4,871
NCI transactions in Xuncheng		—			—		74			—			—			—			74
Capital injection in Taiyanggong Kindergarten		—			—		218			—			—			—			218
Foreign currency translation adjustment		—			—		—			—			—			(46,331	)		(46,331	)
Unrealized gain on available-for-sale investment, net of tax effect of nil		—			—		—			—			—			22,544			22,544

Balance at May 31, 2017		157,687,444			1,584		249,126			(7	)		1,391,084			39,161			1,680,948

Condensed Financial Information of Parent Company - Statements of Cash Flows

Condensed Financial Information of Parent Company

Statements of Cash Flows

(In thousands)


	Years ended May 31,
	2015			2016			2017
	US$			US$			US$
Cash flows from operating activities:
Net income		193,013			224,884			274,457
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Equity in earnings of subsidiaries		(205,974	)		(241,615	)		(292,571	)
Dividend received from subsidiaries		—			49,984			43,417
Share-based compensation expense		15,689			16,810			20,287
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(2,613	)		5,135			5,404
Accrued expenses and other current liabilities		(2,728	)		(3,673	)		(2,341	)
Amounts due from/to related parties		(762	)		(1,446	)		(40,207	)

Net cash (used in) provided by operating activities		(3,375	)		50,079			8,446

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

Net cash used in investing activities		(16,723	)		(8,961	)		(9,500	)

Cash flows from financing activities:
Proceeds from issuance of common shares upon exercise of share options		11,332			2,176			542
Loan from a related party		75,060			8,610			—
Cash paid for shares repurchase		(59,420	)		—			—
Cash paid for dividend		—			(62,668	)		—

Net cash provided by (used in) financing activities		26,972			(51,882	)		542

Net increase / (decrease) in cash and cash equivalents		6,874			(10,764	)		(512	)
Cash and cash equivalents, beginning of year		15,874			22,748			11,984

Cash and cash equivalents, end of year		22,748			11,984			11,472

Organization and Principal Activities - Additional Information (Detail) - Agreement	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Product Information [Line Items]
Renewal of trade mark registration	10 years
Exclusive service agreement renewal term	10 years
Notice period of agreement termination	30 days
Number of new equity pledged agreements	5
Century Friendship [Member] \| Previously Held Equity Interest [Member]
Product Information [Line Items]
Equity interest of Century Friendship prior to the transfer	53.00%
Minimum [Member]
Product Information [Line Items]
Operating services fee percentage from revenue	2.00%
Maximum [Member]
Product Information [Line Items]
Operating services fee percentage from revenue	6.00%
Variable interest entities (VIEs) [Member]
Product Information [Line Items]
Shareholding percentage of Mr. Yu	13.50%
Credit Concentration Risk [Member] \| Sales Revenue, Net [Member]
Product Information [Line Items]
Concentration risk percentage	98.80%	97.70%	97.90%
Credit Concentration Risk [Member] \| Assets, Total [Member]
Product Information [Line Items]
Concentration risk percentage	71.10%	69.80%
Credit Concentration Risk [Member] \| Liabilities, Total [Member]
Product Information [Line Items]
Concentration risk percentage	94.60%	93.70%

Organization and Principal Activities - Balances and Amounts of Company's WFOEs and VIEs (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Variable Interest Entities [Line Items]
Total current assets	$ 2,326,262	$ 1,869,336
Total assets	2,924,979	2,354,834	$ 1,951,537
Total current liabilities	1,202,681	918,190
Total liabilities	1,204,901	920,172
Net revenues	1,799,509	1,478,348	1,246,766
Net income	274,457	224,884	193,013
Net cash provided by operating activities	618,137	517,894	374,145
Net cash used in investing activities	(672,264)	(309,737)	(173,417)
Net cash provided by financing activities	9,349	5,503	(44,297)
Variable interest entities (VIEs) [Member]
Variable Interest Entities [Line Items]
Total current assets	1,590,750	1,262,811
Total non-current assets	488,709	381,262
Total assets	2,079,459	1,644,073
Total current liabilities	1,137,288	860,877
Total non-current liabilities	2,174	1,432
Total liabilities	1,139,462	862,309
Net revenues	1,777,864	1,443,851	1,221,101
Net income	333,456	313,828	265,485
Net cash provided by operating activities	450,196	450,848	357,893
Net cash used in investing activities	(459,532)	(286,235)	$ (167,847)
Net cash provided by financing activities	$ 8,807	$ 69,747

Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016
Receivables [Abstract]
Beginning balance	$ 408	$ 801
Charge during the year	354	235
Written-off	(177)	(628)
Ending balance	$ 585	$ 408

Significant Accounting Policies - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Significant Of Accounting Policies [Line Items]
Impairment loss on long-lived assets	$ 0	$ 0	$ 0
Impairment loss on goodwill	1,682,000	0	0
Impairment losses	$ 0	0	2,000
Percentage of ownership interest in voting stock considered to exist significant influence over investee company	50.00%
Impairment losses on Equity Method Investment	$ 0	0	0
Impairment losses on available-for-sale investments	2,338,000	0	0
Business tax	0	52,993,000	45,664,000
Total advertising expenses	41,498,000	39,753,000	38,295,000
Government subsidies received	1,325,000	494,000	1,230,000
Aggregate amounts denominated in RMB	762,895,000	747,762,000
Amount transfer from level 1 to level 2	0	0
Amount transfer from level 2 to level 1	0	0
Impairment loss on Other Intangible Assets	$ 0	0	$ 0
Minimum [Member]
Significant Of Accounting Policies [Line Items]
Percentage of ownership interest in voting stock considered to exist significant influence over investee company	20.00%
Maximum [Member]
Significant Of Accounting Policies [Line Items]
Percentage of ownership interest in voting stock considered to exist significant influence over investee company	50.00%
Available-for-Sale Investments [Member]
Significant Of Accounting Policies [Line Items]
Transfer from level 2 fair value measurements	$ 31,505,000	$ 63,881,000
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member]
Significant Of Accounting Policies [Line Items]
Concentration risk	10.00%	10.00%	10.00%
Credit Concentration Risk [Member] \| Sales Revenue, Net [Member]
Significant Of Accounting Policies [Line Items]
Concentration risk	98.80%	97.70%	97.90%
Credit Concentration Risk [Member] \| Accounts Receivable [Member]
Significant Of Accounting Policies [Line Items]
Concentration risk	10.00%	10.00%	10.00%
Land use rights [Member] \| Minimum [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	38 years 6 months
Land use rights [Member] \| Maximum [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	50 years

Significant Accounting Policies - Estimated Useful Lives of Assets (Detail)	12 Months Ended
	May 31, 2017
Transportation equipment [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	10 years
Furniture and education equipment [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	5 years
Computer equipment and software [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	3 years
Leasehold Improvements [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	Shorter of the lease term or estimated economic life
Minimum [Member] \| Buildings [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	20 years
Maximum [Member] \| Buildings [Member]
Significant Of Accounting Policies [Line Items]
Estimated useful lives	50 years

Significant Accounting Policies - Schedule of Available-for-Sale Securities Included in Long Term Investments Measured and Recorded at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	$ 197,590	$ 163,804
Common Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	36,406	15,945
Redeemable Preferred Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	153,698	112,136
Convertible Bond [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments		12,310
Asset Management Plan and Trust [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	7,486	23,413
Quoted Prices in Active Market for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	36,406	15,945
Quoted Prices in Active Market for Identical Assets Level 1 [Member] \| Common Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	36,406	15,945
Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	38,155	77,986
Significant Other Observable Inputs Level 2 [Member] \| Redeemable Preferred Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	30,669	42,263
Significant Other Observable Inputs Level 2 [Member] \| Convertible Bond [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments		12,310
Significant Other Observable Inputs Level 2 [Member] \| Asset Management Plan and Trust [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	7,486	23,413
Significant Other Observable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	123,029	69,873
Significant Other Observable Inputs Level 3 [Member] \| Redeemable Preferred Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sales investments	$ 123,029	$ 69,873

Significant Accounting Policies - Reconciliation of The Fair Value Measurements of Assets And Liabilities Using Significant Unobservable Inputs (level 3) (Detail) - Available-for-Sale Investments [Member] - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 69,873
Transfer from level 2 fair value measurements	31,505	$ 63,881
Initial recognition		2,844
Unrealized gain	21,651	3,148
Ending balance	$ 123,029	$ 69,873

Business Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
	Dec. 01, 2014	Mar. 31, 2015	May 31, 2017	Dec. 01, 2016
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
Ainuoshida [Member]
Business Acquisition [Line Items]
Business acquisition, date			Mar. 31, 2015
Business acquisition, equity interest		18.00%	51.00%	33.00%
Business acquisition, total consideration			$ 3,842
Cash consideration		$ 1,129
Gain recognized on investment			$ 723

- Definition

This item represents the net total realized and unrealized gain (loss) included in earnings for the period as a result of selling or holding marketable securities categorized as trading, available-for-sale, or held-to-maturity, including the unrealized holding gain (loss) of held-to-maturity securities transferred to the trading security category and the cumulative unrealized gain (loss) which was included in other comprehensive income (a separate component of shareholders' equity) for available-for-sale securities transferred to trading securities during the period. Additionally, this item would include any gains (losses) realized during the period from the sale of investments accounted for under the cost method of accounting and losses recognized for other than temporary impairments (OTTI) of the subject investments.

+ References + Details

Business Acquisitions - Purchase Price Allocation (Detail) - USD ($) $ in Thousands	Dec. 01, 2016	Dec. 01, 2014	May 31, 2017	May 31, 2016
Business Acquisition [Line Items]
Goodwill			$ 14,083	$ 10,545
Qingdao Alice [Member]
Business Acquisition [Line Items]
Cash		$ 2,306
Other current assets		644
Property, plant and equipment		89
Goodwill		7,540
Other current liabilities		(514)
Deferred tax liabilities		(955)
Total		12,929
Qingdao Alice [Member] \| Trademark [Member]
Business Acquisition [Line Items]
Intangible assets		$ 1,058
Amortization period		10 years 1 month 6 days
Qingdao Alice [Member] \| Student base [Member]
Business Acquisition [Line Items]
Intangible assets		$ 1,998
Amortization period		2 years 2 months 12 days
Qingdao Alice [Member] \| Favorable lease [Member]
Business Acquisition [Line Items]
Intangible assets		$ 763
Amortization period		8 years 8 months 12 days
Qingdao Alice [Member] \| Property, Plant and Equipment [Member] \| Minimum [Member]
Business Acquisition [Line Items]
Amortization period		1 year
Qingdao Alice [Member] \| Property, Plant and Equipment [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Amortization period		5 years
Ainuoshida [Member]
Business Acquisition [Line Items]
Cash	$ 2,499
Other current assets	4,874
Property, plant and equipment	493
Goodwill	5,516
Other current liabilities	(6,040)
Deferred tax liabilities	(713)
Fair value of the 18% equity interest	(1,741)
Noncontrolling interests	(3,899)
Total	3,842
Ainuoshida [Member] \| Trademark [Member]
Business Acquisition [Line Items]
Intangible assets	$ 1,708
Amortization period	10 years
Ainuoshida [Member] \| Student base [Member]
Business Acquisition [Line Items]
Intangible assets	$ 1,069
Amortization period	1 year
Ainuoshida [Member] \| Software [Member]
Business Acquisition [Line Items]
Intangible assets	$ 76
Amortization period	3 years
Ainuoshida [Member] \| Property, Plant and Equipment [Member] \| Minimum [Member]
Business Acquisition [Line Items]
Amortization period	1 year
Ainuoshida [Member] \| Property, Plant and Equipment [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Amortization period	5 years

Business Acquisitions - Purchase Price Allocation (Parenthetical) (Detail)	May 31, 2017	Dec. 01, 2016	Mar. 31, 2015
Ainuoshida [Member]
Business Acquisition [Line Items]
Business acquisition, equity interest	51.00%	33.00%	18.00%

Disposal of Subsidiaries - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Apr. 30, 2016	May 31, 2016	May 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on disposal of subsidiaries		$ 3,760
Equity ownership interest			50.00%
Beijing Dianshijingwei Technology Co.,Ltd [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of equity interest sold	51.00%
Cash consideration	$ 2,325
Gain on disposal of subsidiaries		$ 3,760
Equity ownership interest			49.00%

Short-Term Investments - Summary of Short-Term Investments (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Short-term Investments [Abstract]
Held-to-maturity investments	$ 1,312,942	$ 819,229

Short-Term Investments - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Short-term Investments [Abstract]
Held-to-maturity investments for OTTI recognized	$ 0	$ 0	$ 0
Minimum [Member]
Short-term Investments [Abstract]
Short-term investments stated interest rate	2.60%
Maximum [Member]
Short-term Investments [Abstract]
Short-term investments stated interest rate	5.00%

Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Inventory Disclosure [Abstract]
Course materials in schools	$ 7,419	$ 5,787
Publications in bookstores	24,323	21,516
Inventory	$ 31,742	$ 27,303

Inventory - Additional Information (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Inventory Disclosure [Abstract]
Inventory marked down value	$ 152	$ 638

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

May 31, 2017

May 31, 2016

Prepaid Expenses And Other Current Assets [Abstract]

Prepaid rent

$ 44,746

$ 33,135

Advances to suppliers

29,358

23,143

Interest receivable

14,005

9,341

Rental deposit

8,355

7,122

Receivable from BOCI for the proceeds of exercise of options and withholding tax

5,548

Prepaid advertising fees

4,235

3,250

Staff advances

^[1]

2,514

2,829

Value added taxes recoverable

2,305

2,534

Deposit of advertising & decoration

1,411

1,961

Receivable of social insurance

1,651

1,374

Prepaid property taxes and other taxes

947

616

Others

^[2]

9,870

8,824

Prepaid expenses and other current assets

$ 119,397

$ 99,677

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

Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 503,999	$ 441,508
Less: accumulated depreciation	(235,853)	(209,937)
Construction in-process	14,654	6,127
Property and equipment, Net	282,800	237,698
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	141,477	146,411
Transportation equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,618	8,553
Furniture and education equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	88,671	76,492
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	48,385	40,707
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 216,848	$ 169,345

Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 53,864	$ 47,281	$ 46,663

Land Use Rights, Net - Land Use Rights, Net (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Real Estate [Abstract]
Land use rights	$ 5,003	$ 5,178
Less: accumulated amortization	(1,307)	(1,201)
Exchange differences	(28)	(71)
Land use rights, net	$ 3,668	$ 3,906

Land Use Rights, Net - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Land Use Rights [Line Items]
Amortization expenses of land use rights	$ 106	$ 112	$ 116
Future amortization expense next twelve months	963
Future amortization expense year two	400
Future amortization expense year three	380
Future amortization expense year four	368
Future amortization expense year five	368
Future amortization expense thereafter	1,526
Land use rights [Member]
Land Use Rights [Line Items]
Future amortization expense next twelve months	106
Future amortization expense year two	106
Future amortization expense year three	106
Future amortization expense year four	106
Future amortization expense year five	106
Future amortization expense thereafter	$ 3,138

Intangible Assets, Net - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Intangible assets with indefinite lives:
Intangible assets with indefinite lives, Gross	$ 241	$ 248
Intangible assets with finite lives:
Intangible assets, gross	7,438	4,694
Accumulated amortization:
Accumulated amortization	(3,433)	(2,076)
Intangible assets with indefinite lives, Net	241	248
Intangible assets	4,005	2,618
Trademark [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	2,976	1,293
Accumulated amortization:
Accumulated amortization	(581)	(383)
Intangible assets with definite lives, Net	2,395	910
Courseware [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	122	47
Accumulated amortization:
Accumulated amortization	(58)	(47)
Intangible assets with definite lives, Net	64
Student base [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	2,995	1,978
Accumulated amortization:
Accumulated amortization	(2,455)	(1,404)
Intangible assets with definite lives, Net	540	574
Favorable lease [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	689	713
Accumulated amortization:
Accumulated amortization	(199)	(123)
Intangible assets with definite lives, Net	490	590
License [Member]
Intangible assets with finite lives:
Intangible assets with finite lives, Gross	415	415
Accumulated amortization:
Accumulated amortization	(140)	(119)
Intangible assets with definite lives, Net	$ 275	$ 296

Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expenses	$ 1,419	$ 1,122	$ 607
Future amortization expense next twelve months	963
Future amortization expense year two	400
Future amortization expense year three	380
Future amortization expense year four	368
Future amortization expense year five	368
Future amortization expense thereafter	$ 1,526

Goodwill, Net - Components of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015	Dec. 01, 2016
Costs:
Beginning balance	$ 10,545	$ 11,194
Exchange differences	(296)	(649)
Ending balance	15,765	10,545	$ 11,194
Accumulated goodwill impairment loss:
Beginning balance	0	0
Impairment	(1,682)	0	0
Ending balance	(1,682)	0	$ 0
Goodwill, net	14,083	$ 10,545
Ainuoshida [Member]
Costs:
Acquisition	5,516
Accumulated goodwill impairment loss:
Goodwill, net				$ 5,516
Tongwen [Member]
Accumulated goodwill impairment loss:
Impairment	$ (1,682)

Goodwill, Net - Additional information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Goodwill [Line Items]
Goodwill impairment	$ 1,682	$ 0	$ 0
Tongwen [Member]
Goodwill [Line Items]
Goodwill impairment	$ 1,682

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

May 31, 2017

May 31, 2016

Oct. 31, 2015

Apr. 30, 2015

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Mar. 05, 2012

Schedule of Equity Method Investments [Line Items]

Cost-method Investments [Member]

$ 217,259

$ 178,863

Schedule of Equity Method Investments [Line Items]

Dongfangheli [Member] | Equity Method Investments [Member]

8,132

1,460

Schedule of Equity Method Investments [Line Items]

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

^[1]

2,851

3,451

Schedule of Equity Method Investments [Line Items]

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

^[2]

2,881

3,249

Schedule of Equity Method Investments [Line Items]

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

^[3]

3,436

3,261

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

^[4]

44,809

34,242

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]

^[5]

17,370

29,639

Trust 556 [Member]

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

16,743

$ 15,654

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

^[6]

16,037

Tarena [Member]

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

$ 13,500

Schedule of Equity Method Investments [Line Items]

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

^[7]

25,695

15,945

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

^[8]

32,644

12,310

ROBOROBO [Member]

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

$ 4,356

Schedule of Equity Method Investments [Line Items]

Beijing Shengtong Printing Co Ltd [Member] | Available for sale securities investments [Member]

^[9]

9,999

Schedule of Equity Method Investments [Line Items]

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

^[9]

10,711

Schedule of Equity Method Investments [Line Items]

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

^[10]

2,369

3,638

Schedule of Equity Method Investments [Line Items]

Other Liabilities Disclosure [Abstract]

^[10]

$ 66,361

$ 45,632

[1]	In August 2014, the Group invested US$4,034 to acquire 50% equity interest in Dongfangheli, a company concentrating on investment in educational research and development programs and software consulting services. The Group used the equity method to account for the investment as the Group has the ability to exercise significant influence but does not have control over the investee.
[2]	In August 2014 and May 2015, the Group invested US$3,006 and US$501 respectively in Juesheng.com, a company engaging in providing international educational products search engine service, for 11.9% equity interests. These investments were classified as available-for-sale investment as the Company determined that the shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. Unrealized holding gain of US$3,933 was reported in other comprehensive income for the year ended May 31, 2015. In March 2016, Juesheng.com successfully listed on the National Equities Exchange and Quotations ("NEEQ"). Upon the listing, the Group's preference rights, including its redemption and liquidation preference were terminated and the shares became common shares. As the share conversion is not considered an earnings realization event, all unrealized gains deferred in accumulated other comprehensive income were reversed to the carrying amount of the common shares such that the initial carrying amount of such shares is equal to the original cost basis of the original investment. The Group further accounted for its investment by using equity method as the Group determined that it can exercise significant influence over Juesheng.com.
[3]	In December 2014, the Group invested US$3,472 in Kouyu100, a company applying cutting edge psychoacoustic technology to spoken language training and correcting the pronunciation of a student like a real tutor, for 7% equity interest. The investment was classified as available-for-sale investment as the Company determined that the shares were debt securities due to the redemption option available to the investor and measured subsequently at fair value. Unrealized gain of nil was reported in other comprehensive income for the year ended May 31, 2015. In December 2015, Kouyu100 successfully listed on the NEEQ. Upon the listing, the Group's preference rights, including redemption and liquidation preference were terminated and the shares became common shares. As the share conversion is not considered an earnings realization event, all unrealized gains deferred in accumulated other comprehensive income were reversed to the carrying amount of the common shares such that the initial carrying amount of such shares is equal to the original cost basis of the original investment. The Group further accounted for this investment by using the equity method as the Group determined that it can exercise significant influence over Kouyu100.
[4]	In April and November 2015, the Group invested US$3,398 and US$11,437 respectively in Golden Finance, a company focusing on training programs associated with finance and business management, for 19.5% equity interest. Unrealized holding gains of nil, US$19,407 and US$10,567 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively.
[5]	On March 5, 2012, the Group acquired a convertible promissory from Alo7.com for US$1,000, which entitled the Group to automatically convert the note into equity security. On July 1, 2012, the Group converted the US$1,000 promissory note into convertible redeemable preferred shares and warrants issued by Alo7.com, for 3.4% equity ownership interest in Alo7.com on an as-converted basis. In March, June and September 2014, the Group further invested US$2,576, US$300 and US$10,000 into Alo7.com. As of May 31, 2017, the Company had 17.2% equity interests in Alo7.com. Unrealized holding gains of US$13,428, US$1,704 and loss of US$8,678 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively.
[6]	In October 2015, the Group invested US$15,654 in a two-year trust named Trust 556 with an expected annualized interest rate of 8.5%. The principal and the interest are not guaranteed during the Group's holding period and will be paid upon maturity. The investment was classified as available-for-sale investment as the Group determined that the shares were debt securities and unrealized holding gains of US$383 and US$1,248 were reported in other comprehensive income for the years ended May 31, 2016 and 2017, respectively. As of May 31, 2017, the investment of US$16,743 was reclassified to long term investment due within one year.
[7]	In March 2014, the Group invested US$13,500 in Tarena, which is a service provider of IT professional education in China, for around 3% equity interest. Unrealized holding gain of US$3,495, loss of US$1,005 and gain of US$9,750 were reported in other comprehensive income for the years ended May 31, 2015, 2016 and 2017, respectively.
[8]	In January 2016, the Group invested US$12,310 to acquire convertible bond issued by Shangjiachongye, which focuses on online education specific to vocational qualification training. In July 2016, the Group converted all of the convertible bonds into redeemable preferred shares of Shangjiachongye for a 4.9% equity interest. In the meantime, the Group additionally invested US$12,205 into redeemable preferred shares for another 4.9% equity interest. Unrealized holding gains of nil and US$8,129 were reported in other comprehensive income for the years ended May 31, 2016 and 2017, respectively.
[9]	In April 2015, the Group acquired 18% equity interest in ROBOROBO for a cash consideration of US$4,356, a company applying various robots build training courses for kids with different ages. Unrealized holding gains of nil and US$5,643 were reported in other comprehensive income for the years ended May 31, 2015 and 2016, respectively. In February 2017, the Group disposed the shares in ROBOROBO to exchange for shares newly issued by Shengtong which is an A-share listed company in China. Realized gain of US$7,086 was recognized for the year ended May 31, 2017. The equity interest acquired in Shengtong was classified as available-for-sale security and measured at fair value. Unrealized holding gain of US$423 was reported in other comprehensive income for the year ended May 31, 2017.
[10]	As to the other investments, they represent several insignificant investments either classified as equity method investments or available-for-sale investments as of May 31, 2016 and 2017.

Long Term Investments - Schedule of Long Term Investments (Parenthetical) (Detail) - USD ($)	1 Months Ended						12 Months Ended
	Nov. 30, 2015	Oct. 31, 2015	May 31, 2015	Apr. 30, 2015	Dec. 31, 2014	Mar. 31, 2014	May 31, 2017	May 31, 2016	May 31, 2015	Jul. 31, 2016	Jan. 31, 2016	Sep. 30, 2014	Aug. 31, 2014	Jun. 30, 2014	Jul. 01, 2012	Mar. 05, 2012
Schedule of Equity Method Investments [Line Items]
Equity ownership interest							50.00%
Long term investments							$ 217,259,000	$ 178,863,000
Realized gain from long-term investments							7,086,000
Dongfangheli [Member]
Schedule of Equity Method Investments [Line Items]
Investment for acquiring equity interest													$ 4,034,000
Equity ownership interest													50.00%
Juesheng.com [Member]
Schedule of Equity Method Investments [Line Items]
Investment for acquiring equity interest			$ 501,000						$ 501,000				$ 3,006,000
Equity ownership interest classified as available for sale			11.90%
Unrealized holding gains (loss)									3,933,000
Kouyu 100 [Member]
Schedule of Equity Method Investments [Line Items]
Unrealized holding gains (loss)									0
Equity ownership interest					7.00%
Cash consideration					$ 3,472,000
Golden Finance [Member]
Schedule of Equity Method Investments [Line Items]
Unrealized holding gains (loss)							10,567,000	19,407,000
Cash consideration	$ 11,437,000			$ 3,398,000
Investment ownership interest	19.50%
Alo7.com [Member]
Schedule of Equity Method Investments [Line Items]
Unrealized holding gains (loss)							$ (8,678,000)	1,704,000	13,428,000
Investment ownership interest							17.20%
Long term investments						$ 2,576,000						$ 10,000,000		$ 300,000		$ 1,000,000
Noncontrolling interest, equity ownership percentage															3.40%
Trust 556 [Member]
Schedule of Equity Method Investments [Line Items]
Unrealized holding gains (loss)							$ 706,000	383,000
Long term investments		$ 15,654,000					16,743,000
Investment interest rate		8.50%
Tarena [Member]
Schedule of Equity Method Investments [Line Items]
Equity ownership interest classified as available for sale						3.00%
Unrealized holding gains (loss)							9,750,000	(1,005,000)	$ 3,495,000
Long term investments						$ 13,500,000
ROBOROBO [Member]
Schedule of Equity Method Investments [Line Items]
Unrealized holding gains (loss)							423,000	$ 5,643,000
Investment ownership interest				18.00%
Long term investments				$ 4,356,000
Realized gain from long-term investments							7,086,000
Convertible Bond [Member] \| Shangjiachongye [Member]
Schedule of Equity Method Investments [Line Items]
Long term investments											$ 12,310,000
Redeemable Preferred Shares [Member] \| Shangjiachongye [Member]
Schedule of Equity Method Investments [Line Items]
Unrealized holding gains (loss)							$ 8,129,000
Investment ownership interest										4.90%
Long term investments										$ 12,205,000

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

May 31, 2017

May 31, 2016

Accrued payroll

$ 157,167

$ 131,151

Payable for purchase of property and equipment

21,445

11,953

Amounts reimbursable to employees

^[1]

11,022

8,294

Individual taxes withholding

6,454

8,186

Refundable fees received from students

^[2]

8,687

5,755

Business taxes payable

5,259

Value-added taxes payable

9,516

6,506

Accrued advertising fees

7,798

6,443

Rent payable

7,532

6,285

Welfare payable

6,102

6,004

Royalty fees payable

^[3]

4,011

3,637

Refundable deposit

^[4]

5,382

3,161

Accrued professional service fees

1,486

2,352

Other taxes payable

1,604

1,240

Others

^[5]

12,494

10,818

Total

$ 260,700

$ 217,044

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

Share-Based Compensation - Additional Information (Detail) - USD ($)			1 Months Ended						12 Months Ended			60 Months Ended
	May 31, 2016	Jan. 20, 2006	Nov. 30, 2016	Oct. 31, 2015	Jul. 31, 2015	Feb. 28, 2015	Sep. 30, 2014	Jul. 31, 2014	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2017	Jan. 01, 2008	Jan. 01, 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase shares		8,000,000
Incremental common shares for grant													5,000,000	5,000,000
Common shares to add on the first business day from 2009											3,000,000
Minimum percentage of shares to be added from 2009											2.00%
Additional shares granted											2,000,000
Share Incentive Plan, expiration period		10 years
Number of shares repurchased from open market											2,800,849	5,246,349
Treasury shares for future issuance									691,943			691,943
Share-based compensation expense									$ 20,287,000	$ 16,810,000	$ 15,689,000
Minimum percentage for exercise price of option									100.00%			100.00%
Number of canceled outstanding share options									23,938
Outstanding share options granted Date									Mar. 05, 2007
New share options granted									0	0	0
Common shares issued to employees and non-employees upon the exercise of their share options									11,285,510			11,285,510
Reissuance of treasury stock for the exercises of employee share options									2,256,592
Common shares transferred to be issued to employees and non employees upon the exercise of their vested share options and vesting of non-vesting equity shares									5,246,349
Value of options exercised									$ 2,133,000	$ 4,802,000	$ 5,249,000
Unrecognized compensation expense									$ 0			$ 0
Common shares issued to employees upon the vesting of their shares									4,714,490			4,714,490
Reissuance of treasury stock for Non-vested equity shares vested									2,297,814
Weighted-average grant date fair value, Granted									$ 47.19	$ 22.66	$ 19.26
Total fair value of shares vested									$ 3,783,000
July 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees								209,650
Granted shares vested date											May 31, 2015
September 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees							24,020
Granted shares vested date											May 31, 2015
February 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees						600,000
February 2015 [Member] \| Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees											240,000
Granted shares vested date											Dec. 31, 2015
February 2015 [Member] \| Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees											180,000
Granted shares vested date											Dec. 31, 2016
February 2015 [Member] \| Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees											180,000
Granted shares vested date											Dec. 31, 2017
July 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees					486,330
Granted shares vested date										May 31, 2016
October Two Thousand Fifteen Grant One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees				60,000
October Two Thousand Fifteen Grant One [Member] \| Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees										20,000
Granted shares vested date										May 31, 2016
October Two Thousand Fifteen Grant One [Member] \| Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees										20,000
Granted shares vested date										Dec. 31, 2016
October Two Thousand Fifteen Grant One [Member] \| Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees										20,000
Granted shares vested date										Dec. 31, 2017
November 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
NES grant to employees			436,016
Granted shares vested date									Jun. 30, 2017
Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share transfer									16,000,000			16,000,000
Total unrecognized compensation cost related to NES									$ 3,486,000			$ 3,486,000
Weighted-average period of recognition									2 months 12 days
Non-Vested Equity Shares [Member] \| July 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted									$ 21.01
Non-Vested Equity Shares [Member] \| September 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted									22.32
Non-Vested Equity Shares [Member] \| February 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted									18.52
Non-Vested Equity Shares [Member] \| July 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted									22.69
Non-Vested Equity Shares [Member] \| November 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value, Granted									$ 47.19
2016 Share Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum aggregate number of shares which may be issued	10,000,000									10,000,000
New share options granted	0

Share-Based Compensation - Summary of Share Options Granted and NES (Detail) - $ / shares	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	0	0	0
Fair value of common shares	$ 47.19	$ 22.66	$ 19.26
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	15,826,000
Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	1,816,016
February 2006 [Member] \| Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	7,099,500
Fair value of common shares	$ 1.00
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
July 2014 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	209,650
Fair value of common shares	$ 21.01
Intrinsic value	$ 21.01
September 2014 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	24,020
Fair value of common shares	$ 22.32
Intrinsic value	$ 22.32
February 2015 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	600,000
Fair value of common shares	$ 18.52
Intrinsic value	$ 18.52
July 2015 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	486,330
Fair value of common shares	$ 22.69
Intrinsic value	$ 22.69
October 2015 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	60,000
Fair value of common shares	$ 22.45
Intrinsic value	$ 22.45
November 2016 [Member] \| Non-Vested Equity Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options and non-vested equity shares granted to date	436,016
Fair value of common shares	$ 47.19
Intrinsic value	$ 47.19

Share-Based Compensation - Summary of Share Options Activity under 2006 Share Incentive Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted number of options, Granted	0	0	0
2006 Share Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted number of options outstanding, Beginning balance	78,337
Weighted number of options, Granted	0
Weighted number of options, Exercised	48,047
Weighted number of options, Forfeited	23,938
Weighted number of options outstanding, Ending balance	6,352	78,337
Weighted number of options vested and expect to vest at May 31, 2017	6,352
Weighted number of options exercisable at May 31, 2017	6,352
Weighted average exercise prices, Options outstanding, Beginning balance	$ 6.13
Weighted average exercise prices, Granted	0
Weighted average exercise prices, Exercised	5.37
Weighted average exercise prices, Forfeited	8.75
Weighted average exercise prices, Options outstanding, Ending balance	2.02	$ 6.13
Weighted average exercise prices, Options vested and expect to vest at May 31, 2017	2.02
Weighted average exercise prices, Options exercisable at May 31, 2017	$ 2.02
Remaining contractual life, Options outstanding	1 year 6 months 29 days	6 months 29 days
Remaining contractual life, Options vested and expect to vest	1 year 6 months 29 days
Remaining contractual life, Options exercisable	1 year 6 months 29 days
Aggregate intrinsic value, Options outstanding	$ 442	$ 2,829
Aggregate intrinsic value, Options vested and expect to vest at May 31, 2017	442
Aggregate intrinsic value, Options exercisable at May 31, 2017	$ 442

Share-Based Compensation - Summary of NES Activities under 2006 Share Incentive Plan (Detail) - $ / shares	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Weighted-average grant date fair value, Granted	$ 47.19	$ 22.66	$ 19.26
2006 Share Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of NES, Beginning balance	400,000
Number of NES, Granted	436,016
Number of NES, Vested	(200,000)
Number of NES, Forfeited	(4,050)
Number of NES, Ending balance	631,966	400,000
Number of NES, vested and expect to vest at May 31, 2017	631,966
Weighted-average grant date fair value, Beginning balance	$ 18.91
Weighted-average grant date fair value, Granted	47.19
Weighted-average grant date fair value, Vested	18.91
Weighted-average grant date fair value, Forfeited	47.19
Weighted-average grant date fair value, Ending balance	38.24	$ 18.91
Weighted-average grant date intrinsic value, Beginning balance	18.91
Weighted-average grant date intrinsic value, Granted	47.19
Weighted-average grant date intrinsic value, Vested	18.91
Weighted-average grant date intrinsic value, Forfeited	47.19
Weighted-average grant date intrinsic value, Ending balance	$ 38.24	$ 18.91

Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Current:
PRC	$ 51,142	$ 39,467	$ 31,552
Deferred:
PRC	(518)	(1,936)	(5,331)
Total provision for income taxes	$ 50,624	$ 37,531	$ 26,221

Income Taxes - Additional Information (Detail)	12 Months Ended
Income Taxes - Additional Information (Detail)	May 31, 2017 USD ($) $ / shares	May 31, 2017 CNY (¥)	May 31, 2016 USD ($) $ / shares	May 31, 2015 USD ($) $ / shares
Income Taxes [Line Items]
Income tax rate	15.31%	15.31%	14.04%	11.89%
Cash paid for dividend			$ 62,668,000
Valuation allowance	$ 3,981,000		3,624,000
Increase in valuation allowance	357,000
Net operating loss	36,608,000
Increase of income tax expense	$ 42,895,000		$ 47,559,000	$ 47,080,000
Decrease in basic net income per share \| $ / shares	$ 0.27		$ 0.30	$ 0.30
Decrease in diluted net income per share \| $ / shares	$ 0.27		$ 0.30	$ 0.30
Withholding tax, dividends paid by PRC schools and subsidiaries to their foreign investors				10.00%
Aggregate undistributed earnings available for distribution	$ 1,457,705,000		$ 1,133,217,000
Unrecognized tax benefits	0		0	$ 0
Wholly owned subsidiaries [Member]
Income Taxes [Line Items]
Cash paid for dividend	0		75,898,000
Withholding tax paid for the dividend	$ 0		7,590,000
Beijing Pioneer Technology Company Limited [Member]
Income Taxes [Line Items]
Preferential tax rate	15.00%	15.00%
Minimum [Member]
Income Taxes [Line Items]
Underpayment of tax liability	$ 16,000	¥ 100,000
Shanghai Smart Words Software Technology Company Limited [Member]
Income Taxes [Line Items]
Withholding tax paid for the dividend				$ 5,559,000
Beijing Hewstone, Shanghai Smart Words and Beijing Decision [Member]
Income Taxes [Line Items]
Withholding tax paid for the dividend			$ 7,590,000
High and new tech enterprise (HNTE) [Member]
Income Taxes [Line Items]
Income tax rate	15.00%	15.00%	15.00%	15.00%
Preferential tax rate				15.00%
Newly established software enterprise (NESE) [Member]
Income Taxes [Line Items]
Preferential tax rate	12.50%	12.50%
Tax holiday year	2 years	2 years
Income tax holiday, description	Enterprises that qualify as the "newly established software enterprise" ("NESE") are exempt from Enterprise Income Tax ("EIT") for two years beginning the enterprise's first profitable year followed by a tax rate of 12.5% for the succeeding three years.	Enterprises that qualify as the "newly established software enterprise" ("NESE") are exempt from Enterprise Income Tax ("EIT") for two years beginning the enterprise's first profitable year followed by a tax rate of 12.5% for the succeeding three years.
Peoples Republic Of China Entities [Member]
Income Taxes [Line Items]
Income tax rate	25.00%	25.00%
Variable interest entities (VIEs) [Member]
Income Taxes [Line Items]
Income tax rate	25.00%	25.00%
Hong Kong [Member]
Income Taxes [Line Items]
Income tax rate	16.50%	16.50%
Earliest Tax Year [Member]
Income Taxes [Line Items]
Net operating loss expiration dates	May 31, 2018	May 31, 2018
Latest Tax Year [Member]
Income Taxes [Line Items]
Net operating loss expiration dates	May 31, 2022	May 31, 2022

Income Taxes - Components of Group's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Deferred tax assets, non-current
Allowance doubtful accounts	$ 2,017	$ 252
Accrued expenses	21,893	18,427
Deferred revenue for incentive plan	233	2,376
Net operating loss carry-forward	8,696	6,910
Total deferred tax assets, non-current	32,839	27,965
Less: valuation allowance	(3,981)	(3,624)
Net, deferred tax assets, non-current	28,858	24,341
Deferred tax liabilities, non-current
Acquired of non-current assets	2,220	1,982
Total deferred tax liabilities, non-current	$ 2,220	$ 1,982

Income Taxes - Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates (Detail)	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Income Tax Disclosure [Abstract]
Statutory tax rate	25.00%	25.00%	25.00%
Effect of expenses not deductible for tax purposes	2.03%	4.57%	4.91%
Effect of tax holiday	(13.41%)	(18.05%)	(20.82%)
Changes in valuation allowance	0.11%	0.25%	(0.59%)
Effect of dividend withholding tax	1.58%	2.27%	3.39%
Total provision for income taxes	15.31%	14.04%	11.89%

Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Numerator used in basic and diluted net income per share:
Net income attributable to New Oriental Education & Technology Group Inc.	$ 274,457	$ 224,884	$ 193,013
Net income available for future distribution	$ 274,457	$ 224,884	$ 193,013
Shares (denominator):
Weighted average common shares outstanding used in computing basic net income per share	157,551,320	156,782,439	156,438,606
Plus incremental weighted average common shares from assumed exercise of share options and vesting of NES using the treasury stock method	435,074	609,247	863,568
Weighted average common shares outstanding used in computing diluted net income per share	157,986,394	157,391,686	157,302,174
Net income per share
- Basic	$ 1.74	$ 1.43	$ 1.23
- Diluted	$ 1.74	$ 1.43	$ 1.23

Net Income Per Share - Additional Information (Detail) - shares	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Earnings Per Share [Abstract]
Weighted average treasury shares excluded in computing basic net income per share	828,067	1,596,948	1,940,781
Employee stock options excluded from the dilutive share calculation	0	0	0

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

12 Months Ended

May 31, 2017

May 31, 2016

May 31, 2015

Amounts due from related parties - non current

$ 1,748

$ 1,741

Amounts due to related parties - current

5,948

4,539

Non-Interest Bearing Loan [Member]

191

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

7,148

2,518

Amounts due from related parties - non current

^[1]

1,064

1,741

MaxEn [Member] | Joint Venture [Member]

^[1]

1,895

637

Rental expense

^[1]

6,790

7,139

$ 5,298

Amounts due from related parties - non current

684

Amounts due to related parties - current

812

Haiwei Career [Member] | Joint Venture [Member]

177

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

^[2]

3,965

1,553

Beijing Dianshijingwei Technology Co.,Ltd [Member] | Long-term investee [Member]

^[2]

3,965

1,520

^[3]

1,520

Others [Member]

Amounts due to related parties - current

^[4]

^[4]

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

Great Thanks Holdings Limited [Member] | Joint Venture [Member] | Non-Interest Bearing Loan [Member]

^[5]

1,733

998

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

1,450

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

Goldern Finance [Member] | Long-term investee [Member]

Cost

$ 30

$ 18

[1]	Since April 2010, the Group began renting a large portion of a building owned by Metropolis Holding China Limited for office space. In March 2012, Metropolis Holding China Limited was acquired by a company wholly -owned by Mr. Yu, the Group's executive chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2017, the current and non-current amounts due from Metropolis Holding China Limited were US$1,895 and US$1,064, respectively, which represented prepaid rent and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by all of the directors.
[2]	In October 2014, Haiwei Career became a joint venture of the Group. As a result, Haiwei Career became a related party of the Group. As of May 31, 2017, the amount due from Haiwei Career was US$3,965, which represented loans from the Group to Haiwei Career with non-interest bearing to support its daily operation supporting. All the loans are payable within one year.
[3]	As of May 31, 2016, the amount due from Dianshijingwei represented the non-interest bearing loan provided by the Group before the disposal of Dianshijingwei to support its daily operation. As of May 31, 2017, the Group had collected the loans from Dianshijingwei.
[4]	As of May 31, 2017, the balance in "others" included the current receivables from long-term investees of Tongban, Goldern Finance and etc.
[5]	As of May 31, 2017, the amount due from Weixue Mingri represented the non-interest bearing loans provided by the Group to support its daily operation and the outstanding loans were fully wrote off by the Group.

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

12 Months Ended

May 31, 2017

May 31, 2016

Amounts due from related parties, non-current

$ 5,948

$ 4,539

1,748

1,741

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

Amounts due from related parties, non-current

^[1]

1,895

637

^[1]

1,064

1,741

Haiwei Career [Member] | Joint Venture [Member]

Non-Interest Bearing Loan [Member]

^[2]

3,965

1,553

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

7,148

2,518

Condensed Financial Statements, Captions [Line Items]

^[2]

$ 3,965

$ 1,520

Loans paid off period

1 year

[1]

Since April 2010, the Group began renting a large portion of a building owned by Metropolis Holding China Limited for office space. In March 2012, Metropolis Holding China Limited was acquired by a company wholly -owned by Mr. Yu, the Group's executive chairman. As a result, Metropolis Holding China Limited became a related party of the Group thereafter. As of May 31, 2017, the current and non-current amounts due from Metropolis Holding China Limited were US$1,895 and US$1,064, respectively, which represented prepaid rent and deposit for the building. The amount of the rental payments was determined based on the prevailing market rates and was duly approved by all of the directors.

[2]

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Operating Leased Assets [Line Items]
Rent expenses for cancelable and non-cancelable leases	$ 199,329	$ 173,797	$ 157,523
Maximum [Member]
Operating Leased Assets [Line Items]
Lease term	10 years

Commitments and Contingencies - Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands	May 31, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2018	$ 204,996
2019	185,059
2020	157,333
2021	123,894
2022	83,329
Thereafter	88,611
Operating Leases, Future Minimum Payments Due, Total	$ 843,222

Commitments and Contingencies - Future Minimum Capital Commitments under Non-Cancelable Construction and Investments (Detail) $ in Thousands	May 31, 2017 USD ($)
Capital Lease Obligations [Line Items]
Capital commitment	$ 29,761
Available-for-Sale Investments [Member]
Capital Lease Obligations [Line Items]
Capital commitment	10,064
Purchase of Property and Equipment [Member]
Capital Lease Obligations [Line Items]
Capital commitment	3,359
Leasehold Improvements [Member]
Capital Lease Obligations [Line Items]
Capital commitment	$ 16,338

Noncontrolling Interests - Summary of Changes in Noncontrolling Interest (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Noncontrolling Interest [Line Items]
Beginning balance	$ 30,090	$ 3,496
Capital injections from noncontrolling interests shareholders	3,924	28,919
Capital repurchase from noncontrolling interests shareholders		(3,497)
Addition of noncontrolling interests in connection with acquisition	3,909
Unrealized gain on available-for-sale investment attributed to noncontrolling interests shareholders	(23)	999
Foreign currency translation adjustment attributed to noncontrolling interests shareholders	(1,109)	(271)
Net income (loss) attributed to noncontrolling interests shareholders	2,339	444	$ (295)
Ending balance	39,130	30,090	3,496
Koolearn Corporation [Member]
Noncontrolling Interest [Line Items]
Beginning balance		3,458
Capital repurchase from noncontrolling interests shareholders		(3,497)
Net income (loss) attributed to noncontrolling interests shareholders		39
Ending balance			3,458
Beijing New Oriental Xuncheng Network Technology Company Limited [Member]
Noncontrolling Interest [Line Items]
Beginning balance	29,890
Capital injections from noncontrolling interests shareholders	3,348	28,737
Unrealized gain on available-for-sale investment attributed to noncontrolling interests shareholders	(23)	999
Foreign currency translation adjustment attributed to noncontrolling interests shareholders	(1,118)	(269)
Net income (loss) attributed to noncontrolling interests shareholders	4,454	423
Ending balance	36,551	29,890
Beijing New Road Information Consulting Services Co., Ltd. [Member]
Noncontrolling Interest [Line Items]
Beginning balance	39	38
Foreign currency translation adjustment attributed to noncontrolling interests shareholders	(2)	(2)
Net income (loss) attributed to noncontrolling interests shareholders	(1)	3
Ending balance	36	39	$ 38
Jinzhou New Oriental Training School [Member]
Noncontrolling Interest [Line Items]
Beginning balance	161
Capital injections from noncontrolling interests shareholders		182
Foreign currency translation adjustment attributed to noncontrolling interests shareholders	(4)
Net income (loss) attributed to noncontrolling interests shareholders	(176)	(21)
Ending balance	(19)	$ 161
Dongfangyoubo [Member]
Noncontrolling Interest [Line Items]
Capital injections from noncontrolling interests shareholders	576
Foreign currency translation adjustment attributed to noncontrolling interests shareholders	2
Net income (loss) attributed to noncontrolling interests shareholders	(254)
Ending balance	324
Ainuoshida [Member]
Noncontrolling Interest [Line Items]
Addition of noncontrolling interests in connection with acquisition	3,909
Foreign currency translation adjustment attributed to noncontrolling interests shareholders	13
Net income (loss) attributed to noncontrolling interests shareholders	(1,684)
Ending balance	$ 2,238

Noncontrolling Interests - Schedule of Effects of Changes in Ownership Interest on Equity (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Noncontrolling Interest [Line Items]
Net income attribute to New Oriental Education & Technology Group Inc.	$ 274,457	$ 224,884	$ 193,013
Increase in the Group's additional paid-in capital resulting from capital injection of noncontrolling interests shareholders		68,498	3,791
Repurchase shares from noncontrolling interest		(3,752)
Parent Company [Member]
Noncontrolling Interest [Line Items]
Net income attribute to New Oriental Education & Technology Group Inc.	274,457	224,884	$ 193,013
Increase in the Group's additional paid-in capital resulting from capital injection of noncontrolling interests shareholders	4,871	39,579
Repurchase shares from noncontrolling interest		(255)
Changes from net income attributable to New Oriental Education & Technology Group Inc. shareholders and transfers from/to noncontrolling interests	279,620	264,463
Dongfangyoubo [Member] \| Parent Company [Member]
Noncontrolling Interest [Line Items]
Increase in the Group's additional paid-in capital resulting from capital injection of noncontrolling interests shareholders	138
Beijing New Oriental Xuncheng Network Technology Company Limited [Member] \| Parent Company [Member]
Noncontrolling Interest [Line Items]
Increase in the Group's additional paid-in capital resulting from capital injection of noncontrolling interests shareholders	4,733	$ 39,579
Repurchase shares from noncontrolling interest	(5,412)
Increase in the Group's additional paid-in capital resulting from transferring common shares to noncontrolling interests shareholders	$ 5,704

Noncontrolling Interests - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended
	Feb. 28, 2015	Jun. 30, 2017	May 31, 2017	Dec. 31, 2016	Dec. 01, 2016	Jun. 30, 2016	Apr. 30, 2016	Nov. 30, 2015	May 31, 2015
Koolearn Corporation [Member]
Noncontrolling Interest [Line Items]
Ordinary shares issued	5,000,000
Cash consideration received on issuance of equity	$ 3,752
Noncontrolling interest, equity percentage									5.90%
Beijing New Road Information Consulting Services Co., Ltd. [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest, equity percentage	49.00%
Noncontrolling interest, ownership percentage by parent	51.00%
Beijing New Oriental Xuncheng Network Technology Company Limited [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest, equity percentage		1.70%	1.30%	1.30%			12.50%	21.00%
Noncontrolling interest, ownership percentage by parent			68.00%
Jinzhou New Oriental Training School [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest, equity percentage							40.00%
Noncontrolling interest, ownership percentage by parent							60.00%
Dongfangyouba [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest, equity percentage						49.00%
Noncontrolling interest, ownership percentage by parent						51.00%
Ainuoshida [Member]
Noncontrolling Interest [Line Items]
Business acquisition, equity interest			51.00%		33.00%

Segment Information - Additional Information (Detail) - Segment	12 Months Ended
	May 31, 2017	May 31, 2015
Segment Reporting Information [Line Items]
Number of operating segments	7	6
Sales Revenue, Segment [Member] \| Product Concentration Risk [Member]
Segment Reporting Information [Line Items]
Quantitative threshold	10.00%

Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Segment Reporting Information [Line Items]
Net revenues	$ 1,799,509	$ 1,478,348	$ 1,246,766
Operating costs and expenses:
Cost of revenues	(749,586)	(614,364)	(526,320)
Selling and marketing	(232,826)	(197,897)	(188,483)
General and administrative	(554,948)	(471,010)	(378,434)
Total operating costs and expenses	(1,537,360)	(1,283,271)	(1,093,237)
Gain on disposal of subsidiaries		3,760
Operating income	262,149	198,837	153,529
Total assets	2,924,979	2,354,834	1,951,537
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	1,799,509	1,478,348	1,246,766
Operating costs and expenses:
Cost of revenues	(749,586)	(614,364)	(526,320)
Selling and marketing	(208,463)	(174,814)	(166,276)
General and administrative	(438,672)	(365,181)	(304,770)
Total operating costs and expenses	(1,537,360)	(1,283,271)	(1,093,237)
Gain on disposal of subsidiaries		3,760
Operating income	262,149	198,837	153,529
Total assets	1,968,216	1,610,880	1,311,508
Corporate, Non-Segment [Member]
Operating costs and expenses:
Total operating costs and expenses	(140,639)	(128,912)	(95,871)
Total assets	956,763	743,954	640,029
Language Training and Test Preparation Course [Member]
Operating costs and expenses:
Total assets	1,361,261	1,120,580	937,020
Language Training and Test Preparation Course [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	1,510,497	1,238,572	1,040,380
Operating costs and expenses:
Cost of revenues	(623,364)	(516,370)	(442,994)
Selling and marketing	(146,544)	(125,815)	(122,697)
General and administrative	(363,949)	(296,686)	(245,315)
Total operating costs and expenses	(1,133,857)	(938,871)	(811,006)
Operating income	376,640	299,701	229,374
Total assets	1,361,261	1,120,580	937,020
Primary and Secondary Education [Member]
Operating costs and expenses:
Total assets	79,655	78,556	75,046
Primary and Secondary Education [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	30,782	30,011	26,735
Operating costs and expenses:
Cost of revenues	(10,465)	(9,812)	(9,083)
Selling and marketing	(1,347)	(744)	(1,039)
General and administrative	(11,317)	(12,558)	(10,068)
Total operating costs and expenses	(23,129)	(23,114)	(20,190)
Operating income	7,653	6,897	6,545
Total assets	79,655	78,556	75,046
Others [Member]
Operating costs and expenses:
Total assets	527,300	411,744	299,442
Others [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	258,230	209,765	179,651
Operating costs and expenses:
Cost of revenues	(115,757)	(88,182)	(74,243)
Selling and marketing	(60,572)	(48,255)	(42,540)
General and administrative	(63,406)	(55,937)	(49,387)
Total operating costs and expenses	(239,735)	(192,374)	(166,170)
Gain on disposal of subsidiaries		3,760
Operating income	18,495	21,151	13,481
Total assets	$ 527,300	$ 411,744	$ 299,442

Mainland China Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Compensation and Retirement Disclosure [Abstract]
Contributions for employee benefits	$ 89,709	$ 71,434	$ 61,448

Statutory Reserve - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Statutory Accounting Practices [Line Items]
Percentage allocation of profits to general reserves	10.00%
Registered capital	50.00%
Accrued for general reserve	$ 1,749	$ 695	$ 530
Percentage allocation of profits to development fund	25.00%
Group transfers to the statutory reserves	$ 35,278	31,853	23,742
Development fund [Member]
Statutory Accounting Practices [Line Items]
Appropriations to reserves	$ 33,529	$ 31,158	$ 23,212

Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Restricted Net Assets [Line Items]
Restricted net assets	$ 488,560	$ 358,956
Variable interest entities (VIEs) [Member] \| Paid in capital, additional paid-in capital and statutory reserves [Member]
Restricted Net Assets [Line Items]
Restricted net assets	425,927	292,542
Wholly owned subsidiaries [Member] \| Paid in capital, additional paid-in capital and statutory reserves [Member]
Restricted Net Assets [Line Items]
Restricted net assets	$ 62,633	$ 66,414

Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Jul. 26, 2017	May 31, 2016
Subsequent Event [Line Items]
Special cash dividend declared per share		$ 0.4
Subsequent Event [Member]
Subsequent Event [Line Items]
Special cash dividend declared per share	$ 0.45
Dividend payable date	Oct. 06, 2017
Ex-dividend date	Sep. 01, 2017
Aggregate amount of cash dividends to be paid	$ 70.0
Shareholders date of record	Sep. 06, 2017

Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014
Current assets:
Cash and cash equivalents	$ 641,018	$ 709,209	$ 531,298	$ 371,593
Term deposit	195,085	86,706
Prepaid expense and other current assets	119,397	99,677
Amounts due from related parties	5,948	4,539
Total current assets	2,326,262	1,869,336
Amounts due from related parties	1,748	1,741
Long-term investments	217,259	178,863
Total assets	2,924,979	2,354,834	1,951,537
Current liabilities:
Accrued expenses and other current liabilities	260,700	217,044
Amounts due to related parties	48	42
Total current liabilities	1,202,681	918,190
Equity:
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2016 and 2017; 158,379,387 shares issued as of May 31, 2016 and 2017; 157,439,397 and 157,687,444 shares outstanding as of May 31, 2016 and 2017, respectively)	1,584	1,584
Treasury stock	(7)	(9)
Additional paid-in capital	249,126	223,422
Retained earnings	1,171,109	931,930
Accumulated other comprehensive income	39,161	62,948
Total New Oriental Education & Technology Group Inc. shareholders' equity	1,680,948	1,404,572
Total liabilities and equity	2,924,979	2,354,834
Parent Company [Member]
Current assets:
Cash and cash equivalents	11,472	11,984	22,748	15,874
Term deposit	10,000	10,000
Prepaid expense and other current assets	210	5,900
Amounts due from related parties		16,758
Total current assets	21,682	44,642
Amounts due from related parties	56,965
Long-term investments	120,260	96,498
Investments in subsidiaries and VIEs	1,569,358	1,353,090
Total assets	1,768,265	1,494,230
Current liabilities:
Accrued expenses and other current liabilities	3,675	6,016
Amounts due to related parties	83,642	83,642
Total current liabilities	87,317	89,658
Equity:
Common shares (US$0.01 par value; 300,000,000 shares authorized as of May 31, 2016 and 2017; 158,379,387 shares issued as of May 31, 2016 and 2017; 157,439,397 and 157,687,444 shares outstanding as of May 31, 2016 and 2017, respectively)	1,584	1,584
Treasury stock	(7)	(9)
Additional paid-in capital	249,126	223,422
Retained earnings	1,391,084	1,116,627
Accumulated other comprehensive income	39,161	62,948
Total New Oriental Education & Technology Group Inc. shareholders' equity	1,680,948	1,404,572	$ 1,220,348	$ 1,025,758
Total liabilities and equity	$ 1,768,265	$ 1,494,230

Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Parenthetical) (Detail) - $ / shares	May 31, 2017	May 31, 2016
Condensed Financial Statements, Captions [Line Items]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	158,379,387	158,379,387
Common stock, shares outstanding	157,687,444	157,439,397
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	158,379,387	158,379,387
Common stock, shares outstanding	157,687,444	157,439,397

Schedule I - Condensed Financial Information of Parent Company - Statements of Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Operating costs and expenses:
General and administrative	$ 554,948	$ 471,010	$ 378,434
Total operating costs and expenses	1,537,360	1,283,271	1,093,237
Operating loss	262,149	198,837	153,529
Interest income	61,445	66,861	66,605
Equity in earnings of subsidiaries and VIEs	(3,289)	(4,425)	(1,537)
Net income attributable to New Oriental Education & Technology Group Inc.	274,457	224,884	193,013
Parent Company [Member]
Operating costs and expenses:
General and administrative	18,236	16,732	12,963
Total operating costs and expenses	18,236	16,732	12,963
Operating loss	(18,236)	(16,732)	(12,963)
Interest income	122	1	2
Equity in earnings of subsidiaries and VIEs	292,571	241,615	205,974
Net income attributable to New Oriental Education & Technology Group Inc.	$ 274,457	$ 224,884	$ 193,013

Schedule I - Condensed Financial Information of Parent Company - Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Condensed Financial Statements, Captions [Line Items]
Net income	$ 274,457	$ 224,884	$ 193,013
Other comprehensive income, net of tax
Foreign currency translation adjustment	(47,440)	(72,464)	12,006
Unrealized gain on available-for-sale investment, net of tax effect of nil, nil and nil for years ended May 31, 2015, 2016 and 2017	22,521	36,635	21,940
Other comprehensive income/ (loss)	(24,919)	(35,829)	33,946
Comprehensive income attributable to New Oriental Education & Technology Group Inc.	250,670	188,327	226,959
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net income	274,457	224,884	193,013
Other comprehensive income, net of tax
Foreign currency translation adjustment	(46,331)	(72,193)	12,006
Unrealized gain on available-for-sale investment, net of tax effect of nil, nil and nil for years ended May 31, 2015, 2016 and 2017	22,544	35,636	21,940
Other comprehensive income/ (loss)	(23,787)	(36,557)	33,946
Comprehensive income attributable to New Oriental Education & Technology Group Inc.	$ 250,670	$ 188,327	$ 226,959

Schedule I - Condensed Financial Information of Parent Company - Statements of Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Condensed Financial Statements, Captions [Line Items]
Unrealized gain on available-for-sale investment, tax effect	$ 3,762
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Unrealized gain on available-for-sale investment, tax effect	$ 0	$ 0	$ 0

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

12 Months Ended

60 Months Ended

May 31, 2017

May 31, 2016

May 31, 2015

May 31, 2017

$ 1,404,572

Reissuance of treasury stock for the exercises of employee share options

158,379,387

$ 256

$ 2,431

$ 11,362

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

2,256,592

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

2,297,814

$ 20,287

16,810

15,689

^[1]

$ (59,420)

^[2]

(62,668)

(2,800,849)

(5,246,349)

274,457

224,884

$ 193,013

68,498

3,791

(3,752)

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

(47,440)

(72,464)

12,006

22,521

36,635

$ 21,940

$ 1,680,948

$ 1,404,572

$ 1,680,948

Condensed Financial Statements, Captions [Line Items]

158,379,387

Common Shares [Member]

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

157,439,397

156,486,763

157,758,666

48,047

240,304

953,514

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

200,000

712,330

575,432

(2,800,849)

Additional Paid-in Capital [Member]

157,687,444

157,439,397

156,486,763

157,687,444

Condensed Financial Statements, Captions [Line Items]

Reissuance of treasury stock for the exercises of employee share options

$ 256

$ 2,428

$ 11,353

Reissuance of treasury stock for Non-vested equity shares vested

(2)

(7)

(6)

20,287

16,810

15,689

^[1]

(59,392)

39,579

(255)

Condensed Financial Statements, Captions [Line Items]

^[3]

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]

^[1]

(28)

Condensed Financial Statements, Captions [Line Items]

^[2]

(62,668)

Accumulated Other Comprehensive Income (Loss) [Member]

^[3]

(22,448)

Condensed Financial Statements, Captions [Line Items]

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

(46,331)

(72,193)

12,006

22,544

35,636

21,940

Parent Company [Member]

Condensed Financial Statements, Captions [Line Items]

$ 1,404,572

1,220,348

1,025,758

Reissuance of treasury stock for the exercises of employee share options

158,379,387

$ 256

2,431

11,362

20,287

16,810

15,689

(59,420)

(62,668)

274,457

224,884

193,013

4,871

39,579

(255)

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

(46,331)

(72,193)

12,006

22,544

35,636

21,940

$ 1,680,948

$ 1,404,572

1,220,348

$ 1,680,948

Parent Company [Member] | Beijing New Oriental Xuncheng Network Technology Company Limited [Member]

158,379,387

Condensed Financial Statements, Captions [Line Items]

Parent Company [Member] | Beijing Chao Yang District Taiyanggong Kindergarten of Stars [Member]

$ 74

Condensed Financial Statements, Captions [Line Items]

Parent Company [Member] | Common Shares [Member]

218

Condensed Financial Statements, Captions [Line Items]

$ 1,584

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

157,439,397

156,486,763

157,758,666

48,047

240,304

953,514

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

200,000

712,330

575,432

(2,800,849)

$ 1,584

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

157,687,444

157,439,397

156,486,763

157,687,444

Condensed Financial Statements, Captions [Line Items]

Reissuance of treasury stock for the exercises of employee share options

$ 223,422

$ 141,653

$ 174,009

256

2,428

11,353

Reissuance of treasury stock for Non-vested equity shares vested

(2)

(7)

(6)

20,287

16,810

15,689

(59,392)

4,871

39,579

(255)

23,214

Parent Company [Member] | Additional Paid-in Capital [Member] | Beijing New Oriental Xuncheng Network Technology Company Limited [Member]

249,126

223,422

141,653

$ 249,126

Condensed Financial Statements, Captions [Line Items]

Parent Company [Member] | Additional Paid-in Capital [Member] | Beijing Chao Yang District Taiyanggong Kindergarten of Stars [Member]

Condensed Financial Statements, Captions [Line Items]

Parent Company [Member] | Treasury Stock [Member]

218

Condensed Financial Statements, Captions [Line Items]

Reissuance of treasury stock for the exercises of employee share options

(9)

(19)

(6)

Reissuance of treasury stock for Non-vested equity shares vested

(28)

Parent Company [Member] | Retained Earnings [Member]

(7)

(9)

(19)

(7)

Condensed Financial Statements, Captions [Line Items]

1,116,627

977,625

784,612

(62,668)

274,457

224,884

193,013

(23,214)

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

1,391,084

1,116,627

977,625

1,391,084

Condensed Financial Statements, Captions [Line Items]

62,948

99,505

65,559

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

(46,331)

(72,193)

12,006

22,544

35,636

21,940