0001104659-21-063077 | 20-F | XBRL Viewer

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Document and Entity Information	12 Months Ended
Document and Entity Information	Feb. 28, 2021 shares
Document Information [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Feb. 28, 2021
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-34900
Entity Registrant Name	TAL Education Group
Entity Incorporation, State or Country Code	KY
Entity Address, Address Line One	15/F, Danling SOHO
Entity Address, Address Line Two	6 Danling Street
Entity Address, Address Line Three	Haidian District
Entity Address, City or Town	Beijing
Entity Address, Postal Zip Code	100080
Entity Address, Country	CN
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Central Index Key	0001499620
Current Fiscal Year End Date	--02-29
Amendment Flag	false
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
ICFR Auditor Attestation Flag	true
ADS
Document Information [Line Items]
Title of 12(b) Security	American Depositary Shares, each three representing one Class A common share*
Trading Symbol	TAL
Security Exchange Name	NYSE
Common Class A
Document Information [Line Items]
Title of 12(b) Security	Class A common shares, par value $0.001 per share**
Trading Symbol	TAL
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding	147,995,578
Common Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	66,939,204
Business Contact [Member]
Document Information [Line Items]
Contact Personnel Name	Rong Luo
Entity Address, Address Line One	15/F, Danling SOHO
Entity Address, Address Line Two	6 Danling Street
Entity Address, Address Line Three	Haidian District
Entity Address, City or Town	Beijing
Entity Address, Postal Zip Code	100080
Entity Address, Country	CN
Contact Personnel Email Address	ir@tal.com
Country Region	86
City Area Code	10
Local Phone Number	5292-6658

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Feb. 28, 2021 USD ($)	Feb. 29, 2020 USD ($)
Current assets
Cash and cash equivalents	$ 3,242,953	$ 1,873,866
Restricted cash-current	1,758,937	28,084
Short-term investments	2,694,555	345,457
Inventory	38,675	25,832
Amounts due from related parties-current	2,964	3,642
Income tax receivables	15,641	11,548
Prepaid expenses and other current assets	403,110	207,352
Total current assets	8,156,835	2,495,781
Restricted cash-non-current	16,094	13,235
Property and equipment, net	511,415	366,656
Deferred tax assets	317,189	79,534
Rental deposits	102,555	72,721
Intangible assets, net	66,041	58,985
Land use rights, net	216,702	204,853
Goodwill	454,413	378,913
Long-term investments	667,636	571,601
Long-term prepayments and other non-current assets	57,694	85,275
Operating lease right-of-use assets	1,545,735	1,243,692
Total assets	12,112,309	5,571,246
Current liabilities
Accounts payable (including accounts payable of the consolidated VIEs without recourse to TAL Education Group of $104,231 and $334,579 as of February 29, 2020 and February 28, 2021, respectively)	353,778	117,770
Deferred revenue-current (including deferred revenue-current of the consolidated VIEs without recourse to TAL Education Group of $733,253 and $1,328,473 as of February 29, 2020 and February 28, 2021, respectively)	1,387,493	780,167
Amounts due to related parties-current (including amounts due to related parties-current of the consolidated VIEs without recourse to TAL Education Group of $4,264 and $3,396 as of February 29, 2020 and February 28, 2021, respectively)	3,488	4,361
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to TAL Education Group of $470,519 and $750,204 as of February 29, 2020 and February 28, 2021, respectively)	911,283	552,650
Income tax payable (including income tax payable of the consolidated VIEs without recourse to TAL Education Group of $43,233 and $51,037 as of February 29, 2020 and February 28, 2021, respectively)	65,138	46,650
Current portion of long-term debt (including current portion of long-term debt of the consolidated VIEs without recourse to TAL Education Group of nil and nil as of February 29, 2020 and February 28, 2021, respectively)	270,000
Operating lease liabilities, current portion (including operating lease liabilities, current portion of the consolidated VIEs without recourse to TAL Education Group of $276,712 and $349,547 as of February 29, 2020 and February 28, 2021, respectively)	382,671	304,960
Total current liabilities	3,373,851	1,806,558
Deferred revenue-non-current (including deferred revenue-non-current of the consolidated VIEs without recourse to TAL Education Group of $833 and $30,005 as of February 29, 2020 and February 28, 2021, respectively)	30,005	833
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to TAL Education Group of $7,197 and $10,109 as of February 29, 2020 and February 28, 2021, respectively)	10,333	7,789
Bond payable (including bond payable of the consolidated VIEs without recourse to TAL Education Group of nil and nil as of February 29, 2020 and February 28, 2021, respectively)	2,300,000
Long-term debt (including long-term debt of the consolidated VIEs without recourse to TAL Education Group of nil and nil as of February 29, 2020 and February 28, 2021, respectively)		261,950
Operating lease liabilities, non-current portion (including operating lease liabilities, non-current portion of the consolidated VIEs without recourse to TAL Education Group of $883,603 and $1,123,508 as of February 29, 2020 and February 28, 2021, respectively)	1,193,564	949,919
Total liabilities	6,907,753	3,027,049
Mezzanine equity
Redeemable noncontrolling interests	1,775
Equity
Additional paid-in capital	4,369,125	1,675,640
Statutory reserve	121,285	82,712
Retained earnings	624,883	786,097
Accumulated other comprehensive (loss) / income	86,321	(28,913)
Total TAL Education Group shareholder's equity	5,201,829	2,515,736
Noncontrolling interests	952	28,461
Total equity	5,202,781	2,544,197
Total liabilities, mezzanine equity and equity	12,112,309	5,571,246
Common Class A
Equity
Common shares	148	133
Total equity	148	133
Common Class B
Equity
Common shares	67	67
Total equity	$ 67	$ 67

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Feb. 28, 2021	Feb. 29, 2020
Accounts payable	$ 353,778,000	$ 117,770,000
Deferred revenue - current	1,387,493,000	780,167,000
Amounts due to related parties	3,488,000	4,361,000
Accrued expenses and other current liabilities	911,283,000	552,650,000
Income tax payable	65,138,000	46,650,000
Operating lease liability - current	382,671,000	304,960,000
Deferred revenue - non-current	30,005,000	833,000
Deferred tax liabilities - non-current	10,333,000	7,789,000
Long-term debt		261,950,000
Operating lease liability - noncurrent	1,193,564,000	949,919,000
VIE's
Accounts payable	334,579,000	104,231,000
Deferred revenue - current	1,328,473,000	733,253,000
Amounts due to related parties	3,396,000	4,264,000
Accrued expenses and other current liabilities	750,204,000	470,519,000
Income tax payable	51,037,000	43,233,000
Short-term Debt	0	0
Operating lease liability - current	349,547,000	276,712,000
Deferred revenue - non-current	30,005,000	833,000
Deferred tax liabilities - non-current	10,109,000	7,197,000
Bond payable, Non-current	0	0
Long-term debt	0	0
Operating lease liability - noncurrent	$ 1,123,508,000	$ 883,603,000
Common Class A
Common shares, par value (in dollars per share)	$ 0.001	$ 0.001
Common shares, shares authorized (in shares)	500,000,000	500,000,000
Common shares, shares issued (in shares)	147,995,578	132,895,675
Common shares, shares outstanding (in shares)	147,995,578	132,895,675
Common Class B
Common shares, shares issued (in shares)	66,939,204	66,941,204
Common shares, shares outstanding (in shares)	66,939,204	66,941,204

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 4,495,755	$ 3,273,308	$ 2,562,984
Cost of revenues	(2,048,561)	(1,468,569)	(1,164,454)
Gross profit	2,447,194	1,804,739	1,398,530
Operating expenses
Selling and marketing	(1,680,050)	(852,808)	(484,000)
General and administrative	(1,117,324)	(794,957)	(579,672)
Impairment loss on intangible assets and goodwill	(107,535)	(28,998)	0
Total operating expenses	(2,904,909)	(1,676,763)	(1,063,672)
Government subsidies	19,491	9,467	6,724
Income / (loss) from operations	(438,224)	137,443	341,582
Interest income	114,232	72,991	59,614
Interest expense	(16,946)	(11,820)	(17,628)
Other income / (expense)	140,878	(95,297)	131,727
Impairment loss on long-term investments	(24,563)	(153,970)	(58,091)
Income / (loss) before provision for income tax and (loss) / income from equity method investments	(224,623)	(50,653)	457,204
Income tax (expense) / benefit	69,897	(69,328)	(76,504)
(Loss) / income from equity method investments	11,676	(7,670)	(16,186)
Net income / (loss)	(143,050)	(127,651)	364,514
Add: Net loss attributable to noncontrolling interests shareholders	27,060	17,456	2,722
Net income / (loss) attributable to TAL Education Group's shareholders	$ (115,990)	$ (110,195)	$ 367,236
Net income / (loss) per common share
Basic	$ (0.57)	$ (0.56)	$ 1.93
Diluted	$ (0.57)	$ (0.56)	$ 1.83
Weighted average shares used in calculating net income / (loss) per common share
Basic	203,603,391	198,184,370	189,951,643
Diluted	203,603,391	198,184,370	200,224,934

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME /(LOSS)
Net income / (loss)	$ (143,050)	$ (127,651)	$ 364,514
Other comprehensive income / (loss), net of tax
Foreign currency translation adjustment	99,329	(48,947)	(35,823)
Unrealized gains on available-for-sale investments:
Net unrealized gains on available-for-sale investments, net of tax effect of $2,018, $(2,371) and $944 for the years ended February 28, 2019, February 29, 2020 and , February 28, 2021, respectively	17,169	1,122	15,837
Less: Transfer to statements of operations of realized gains on available-for-sale investments, net of tax effect of nil,nil and nil for the years ended February 28, 2019, February 29,2020 and February 28, 2021			(96,251)
Other comprehensive (loss) / income	116,498	(47,825)	(116,237)
Comprehensive income / (loss)	(26,552)	(175,476)	248,277
Add: Comprehensive loss attributable to noncontrolling interests shareholders	25,796	19,321	3,681
Comprehensive income / (loss) attributable to TAL Education Group's shareholders	$ (756)	$ (156,155)	$ 251,958

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME /(LOSS)
Net unrealized gains on available-for-sale investments, net	$ 944	$ (2,371)	$ 2,018
Transfer to statements of operations of realized gains on available-for-sale, net	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Additional paid-in capital	Statutory reserve	Retained earnings Cumulative adjustment	Retained earnings	Accumulated other comprehensive income /(loss)	Total TAL Education Group shareholders' equity Cumulative adjustment	Total TAL Education Group shareholders' equity	Noncontrolling Interest Cumulative adjustment	Noncontrolling Interest	Common Class A	Common Class B	Class A common shares Issuable	Cumulative adjustment	Total
Balance at Feb. 28, 2018	$ 884,717	$ 38,315		$ 565,202	$ 132,325		$ 1,620,748		$ 19,716	$ 118	$ 71			$ 1,640,464
Balance (in shares) at Feb. 28, 2018										118,401,821	70,556,000
Net income / (loss)				367,236			367,236		(2,722)					364,514
Provision for statutory reserve		20,375		(20,375)
Issuance of common shares in connection with vesting of non-vested shares	(2)									$ 2
Issuance of common shares in connection with vesting of non-vested shares (in shares)										2,073,711
Share-based compensation	76,720						76,720							76,720
Exercise of share options	3,296						3,297			$ 1				3,297
Exercise of share options (in shares)										232,024
Foreign currency translation adjustment					(34,864)		(34,864)		(959)					(35,823)
Net unrealized gains on available-for-sale investments, net					15,837		15,837							15,837
Conversion of convertible bond to Class A common shares	5,799						5,800			$ 1				5,800
Conversion of convertible bond to Class A common shares (in shares)										443,091
Exercise of capped call option	13,270						13,270							13,270
Business acquisitions (Note 3)	1,726						3,703		29,658			$ 1,977		33,361
Stock consideration (in shares)										20,502
Transfer to statements of operations of gains recognized for available-for-sale investments, net of tax effect of nil					(96,251)		(96,251)							(96,251)
Capital injection from noncontrolling interests shareholders									15					15
Class A Common shares issued under private placements (Note 18)	499,995						500,000			$ 5				500,000
Class A Common shares issued under private placements (Note 18) (in shares)										5,329,922
Balance at Feb. 28, 2019	1,485,521	58,690	$ 8,251	920,314	17,047	$ 8,251	2,483,747	$ 1,022	46,730	$ 127	$ 71	1,977	$ 9,273	2,530,477
Balance (in shares) at Feb. 28, 2019										126,501,071	70,556,000
Conversion of Class B common shares to Class A common shares										$ 4	$ (4)
Conversion of Class B common shares to Class A common shares (in shares)										3,614,796	(3,614,796)
Net income / (loss)				(110,195)			(110,195)		(17,456)					(127,651)
Provision for statutory reserve		24,022		(24,022)
Issuance of common shares in connection with vesting of non-vested shares	(2)									$ 2
Issuance of common shares in connection with vesting of non-vested shares (in shares)										2,239,239
Share-based compensation	116,703						116,703							116,703
Exercise of share options	2,550						2,550							2,550
Exercise of share options (in shares)										114,793
Foreign currency translation adjustment					(47,082)		(47,082)		(1,865)					(48,947)
Net unrealized gains on available-for-sale investments, net					1,122		1,122							1,122
Conversion of convertible bond to Class A common shares	5,250						5,250							5,250
Conversion of convertible bond to Class A common shares (in shares)										401,074
Exercise of capped call option	66,346						66,346							66,346
Acquisition of noncontrolling interests	(672)						(672)		(1,755)					(2,427)
Business acquisitions (Note 3)	2,741						764					$ (1,977)		764
Stock consideration (in shares)										24,702
Capital injection from noncontrolling interests shareholders	(2,797)						(2,797)		2,807					10
Balance at Feb. 29, 2020	1,675,640	82,712		786,097	(28,913)		2,515,736		28,461	$ 133	$ 67			2,544,197
Balance (in shares) at Feb. 29, 2020										132,895,675	66,941,204
Conversion of Class B common shares to Class A common shares (in shares)										2,000	(2,000)
Net income / (loss)				(115,990)			(115,990)		(27,060)					(143,050)
Provision for statutory reserve		38,573		(38,573)
Issuance of common shares in connection with vesting of non-vested shares	(2)									$ 2
Issuance of common shares in connection with vesting of non-vested shares (in shares)										2,240,585
Share-based compensation	195,000						195,000							195,000
Exercise of share options	8,352						8,352							8,352
Exercise of share options (in shares)										359,178
Share repurchases	(9,852)						(9,852)							(9,852)
Share repurchases (in shares)										(61,667)
Foreign currency translation adjustment					98,065		98,065		1,264					99,329
Net unrealized gains on available-for-sale investments, net					17,169		17,169							17,169
Business acquisitions (Note 3)									(629)					(629)
Stock consideration (in shares)										0
Disposal of a subsidiary									(1,084)					(1,084)
Class A Common shares issued under private placements (Note 18)	2,499,987						2,500,000			$ 13				2,500,000
Class A Common shares issued under private placements (Note 18) (in shares)										12,559,807
Balance at Feb. 28, 2021	$ 4,369,125	$ 121,285	$ (6,651)	$ 624,883	$ 86,321	$ (6,651)	$ 5,201,829		$ 952	$ 148	$ 67		$ (6,651)	$ 5,202,781
Balance (in shares) at Feb. 28, 2021										147,995,578	66,939,204

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Feb. 28, 2019 USD ($)
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Net unrealized gains on available-for-sale investments, net	$ 2,018
Transfer to statements of operations of realized gains on available for sale securities, net	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
Cash flows from operating activities
Net income / (loss)	$ (143,050)	$ (127,651)	$ 364,514
Adjustments to reconcile net income / (loss) to net cash provided by operating activities
Depreciation of property and equipment	136,960	99,511	76,669
Amortization of intangible assets	24,030	15,677	12,166
Amortization of land use rights	4,345	2,804
Loss on disposal of property and equipment	1,427	934	187
Share-based compensation	204,945	117,943	77,277
Impairment loss on operating assets, intangible assets and goodwill	154,745	63,420	2,569
Impairment loss on long-term investments	24,563	153,970	58,091
Loss / (gain) from equity method investments	(11,676)	7,670	16,186
(Gain) / loss from fair value change of investments	(9,471)	104,239	(16,394)
Gain recognized for the conversion of debt securities to equity securities			(95,491)
Gain from remeasuring fair value of previously held equity interests upon business acquisitions	(3,855)		(26,397)
Gain from disposal of long-term investments	(619)	(25,002)	(3,363)
Loss from disposal of a subsidiary	966
Changes in operating assets and liabilities
Inventory	(16,998)	(18,333)	(2,368)
Amounts due from related parties	748	(1,589)	(690)
Prepaid expenses and other current assets	(206,499)	(24,981)	(34,584)
Income tax receivables	(4,093)	(4,344)	7,889
Deferred income taxes	(242,401)	(58,339)	(19,786)
Rental deposits	(29,203)	(16,587)	(8,745)
Other non-current assets	(8,546)	256	1,033
Accounts payable	229,003	693	49,286
Deferred revenue	529,209	343,555	(407,150)
Amounts due to related parties	(866)	424	610
Accrued expenses and other current liabilities	283,085	204,352	117,796
Income tax payable	18,488	7,906	25,056
Operating lease right-of-use assets	(300,078)	(218,829)
Operating lease liabilities	319,573	228,151
Net cash provided by operating activities	954,732	855,850	194,361
Cash flows from investing activities
Loan to third parties		(13,590)	(33,700)
Repayment of loan to third parties	13,812		5,231
Loan to related parties	(16,294)	(31,681)	(3,989)
Repayment of loan to related parties		2,146	2,322
Loan to employees	(2,538)	(2,373)	(2,660)
Repayment of loan to employees	4,659	5,486	6,269
Prepayment for investments	(5,515)	(18,489)	(2,562)
Prepayments for purchase of land use right		(6,780)	(209,865)
Purchase of property and equipment	(245,058)	(178,071)	(138,406)
Purchase of intangible assets	(683)	(3,213)	(6,738)
Purchase of short-term investments	(2,534,705)	(546,747)	(581,204)
Proceeds from short-term investments	207,576	517,001	1,103,252
Proceeds from disposal of property and equipment	750	543	1,709
Business acquisitions, net of cash acquired	(11,902)	(7,026)	(66,921)
Payments for long-term investments	(53,334)	(117,508)	(243,542)
Proceeds from disposal of long-term investments	1,763	61,487	4,220
Net cash used in investing activities	(2,641,469)	(338,815)	(166,584)
Cash flows from financing activities
Net proceeds from long-term debt and short-term debt		270,000	189,932
Repayment of long-term debt and short-term debt	(3,518)	(209,308)	(205,000)
Payment for upfront fee related to long term debt (Note 14)			(12,600)
Payments for purchasing noncontrolling interests		(5,183)	(4,407)
Capital injection from noncontrolling interests shareholders		10	15
Cash received from exercise of capped call option		73,247	6,369
Proceeds from issuance of convertible bond (Note 13)	2,300,000
Proceeds from private placement (Note 18)	2,500,000		500,000
Proceeds from exercise of share options	8,183	2,490	710
Repayment of convertible bond		(25)
Share repurchase	(9,852)
Net cash provided by financing activities	4,794,813	131,231	475,019
Effect of exchange rate changes	(5,277)	3,218	33,208
Net increase in cash, cash equivalents and restricted cash	3,102,799	651,484	536,004
Cash, cash equivalents and restricted cash at the beginning of year	1,915,185	1,263,701	727,697
Cash, cash equivalents and restricted cash at the end of year	5,017,984	1,915,185	1,263,701
Supplemental disclosure of cash flow information:
Interest paid	8,380	6,707	12,556
Income tax paid	158,785	122,266	61,811
Non-cash investing and financing activities:
Payable for purchase of property and equipment	43,732	24,145	8,466
Payable for purchase of intangible assets	866	1,436	2,688
Payable for investments and acquisitions	$ 312	404	38,630
Conversion of convertible bond to Class A common shares		$ 5,250	5,800
Class A Common shares issued and issuable for business acquisitions			3,703
Receivable for exercise of capped call option			$ 6,901

ORGANIZATION AND PRINCIPAL ACTIVITIES

12 Months Ended

Feb. 28, 2021

ORGANIZATION AND PRINCIPAL ACTIVITIES

ORGANIZATION AND PRINCIPAL ACTIVITIES

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

TAL Education Group (the “Company” or “TAL”) was incorporated in the Cayman Islands on January 10, 2008 to be the holding company for a group of companies engaged in the provision of high quality after-school tutoring programs for primary and secondary school students in the People’s Republic of China (the “PRC”). At the time of its incorporation and through the Variable Interest Entities (“VIEs”) arrangements as described below, the ownership interest of the Company was held by Bangxin Zhang, Yundong Cao, Yachao Liu and Yunfeng Bai (collectively, “the founding shareholders”).

The Company, its subsidiaries, its consolidated VIEs and VIEs’ subsidiaries and schools are collectively referred to as the “Group”.

As of February 28, 2021, details of the Company’s major subsidiaries, VIEs and VIEs’ subsidiaries and schools are as follows:

Name	Later of date of incorporation or acquisition	Place of incorporation (or establishment) /operation	Percentage of legal ownership	Principal activities	Nature of company

TAL Holding Limited (“TAL Hong Kong”)	March 11, 2008	Hong Kong	100%	Intermediate holding company	Subsidiary
Beijing Century TAL Education Technology Co., Ltd. (“TAL Beijing”)	May 8, 2008	Beijing	100%	Software sales, and consulting service	Subsidiary
Beijing Huanqiu Zhikang Shidai Education Consulting Co., Ltd. (“Huanqiu Zhikang”)	September 17, 2009	Beijing	100%	Education and management consulting service	Subsidiary
Yidu Huida Education Technology (Beijing) Co., Ltd. (“Yidu Huida”)	November 11, 2009	Beijing	100%	Software sales and consulting service	Subsidiary
Beijing Xintang Sichuang Education Technology Co., Ltd. (“Beijing Xintang Sichuang”)	August 27, 2012	Beijing	100%	Software and Network development, sales, and consulting service	Subsidiary
Zhixuesi Education Consulting (Beijing) Co., Ltd. (“Zhixuesi Beijing”)	October 23, 2012	Beijing	100%	Software and Network development, sales, and consulting service	Subsidiary
Pengxin TAL Industrial investment (Shanghai) Co., Ltd. (“Pengxin TAL”)	June 26, 2014	Shanghai	100%	Investment management and consulting services	Subsidiary
Firstleap Education (“Firstleap”)	January 22, 2016	Cayman Islands	100%	Intermediate holding company	Subsidiary

1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued

Name	Later of date of incorporation or acquisition	Place of incorporation (or establishment) /operation	Percentage of legal ownership	Principal activities	Nature of company
Firstleap Education (HK) Limited (“Firstleap Hong Kong”)	January 22, 2016	Hong Kong	100%	Intermediate holding company	Subsidiary
Beijing Lebai Information Consulting Co., Ltd. (“Lebai Information”)	January 22, 2016	Beijing	100%	Education and management consulting service	Subsidiary
Beijing Yizhen Xuesi Education Technology Co., Ltd. (“Yizhen Xuesi”)	November 3, 2016	Beijing	100%	Software and Network development,sales and consulting service	Subsidiary
Beijing Xueersi Education Technology Co., Ltd. (“Xueersi Education”)	December 31, 2005	Beijing	N/A*	Sales of educational materials and products	VIE
Beijing Xueersi Network Technology Co., Ltd. (“Xueersi Network”)	August 23, 2007	Beijing	N/A*	Technology development and Educational consulting service	VIE
Xinxin Xiangrong Education Technology (Beijing) Co., Ltd. (“Xinxin Xiangrong”)	June 23, 2015	Beijing	N/A*	Technology development and Educational consulting service	VIE
Beijing Lebai Education Consulting Co., Ltd. (“Lebai Education”)	January 22, 2016	Beijing	N/A*	Educational consulting service	VIE
Beijing Xicheng District Xueersi Training School (“Beijing Xicheng School” )	April 2, 2009	Beijing	N/A*	After-school tutoring for primary and secondary school students	VIE’s subsidiaries and schools
Shanghai Xueersi Education Training Co., Ltd. (“Shanghai Education”)	July 2, 2009	Shanghai	N/A*	After-school tutoring for primary and secondary school students	VIE’s subsidiaries and schools
Shenzhen Xueersi Training Center (“Shenzhen School”)	November 12, 2013	Shenzhen	N/A*	After-school tutoring for primary and secondary school students	VIE’s subsidiaries and schools
TAL Training School (Shanghai) Co., Ltd. (“TAL Shanghai”)	February 20, 2019	Shanghai	N/A*	After-school tutoring for primary and secondary school students	VIE’s subsidiaries and schools

*These entities are controlled by the Company pursuant to the contractual arrangements disclosed below.

1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued

The VIE arrangements

Due to PRC legal restrictions on foreign ownership and investment in the education business in China, aside from the Group’s small portion of personalized premium tutoring services in Beijing conducted by the Company’s wholly owned PRC subsidiaries, Huanqiu Zhikang and Zhixuesi Beijing, the Group provides most of its services in the PRC through its VIEs including Xueersi Education, Xueersi Network, Xinxin Xiangrong, Lebai Education and their subsidiaries and schools.

To provide the Company the power to control and the ability to receive the expected residual returns of the VIEs and their subsidiaries and schools, the Company’s wholly owned subsidiary, TAL Beijing, entered into a series of contractual arrangements with Xueersi Education, Xueersi Network and their respective shareholders on February 12, 2009 and August 12, 2009, including exclusive business service agreements, which were superseded by the Exclusive Business Cooperation Agreement entered into on June 25, 2010. TAL Beijing also entered into a series of contractual arrangements with Xinxin Xiangrong on August 4, 2015. The Company acquired Firstleap during fiscal year 2016. Lebai Information, a wholly owned PRC subsidiary of Firstleap, entered into a series of contractual arrangements on October 26, 2015 with Lebai Education and its sole shareholder. After the acquisition, Xueersi Education, a VIE of the Group became the sole shareholder of Lebai Education.

The VIEs and their subsidiaries and schools hold various licenses upon which the Group’s business depends. A substantial majority of the Group’s employees who provide the Group’s services are hired by the VIEs and their subsidiaries and schools, and the VIEs and their subsidiaries and schools lease a substantial portion of the properties upon which the Group’s services are delivered. The net revenue from the VIEs and their subsidiaries and schools accounted for 94.4% of the Group’s total net revenue for the fiscal year ended February 28, 2021.

Through the contractual arrangements below, TAL Beijing and Lebai Information have (1) the power to direct the activities of the VIEs and their subsidiaries and schools that most significantly affect their economic performance and (2) the right to receive substantially all the benefits from the VIEs and their subsidiaries and schools. They are therefore considered the primary beneficiaries of the VIEs and their subsidiaries and schools, and accordingly, the results of operations, assets and liabilities of the VIEs and their subsidiaries and schools are consolidated in the Group’s financial statements.

Series of exclusive technology support and service agreements: Pursuant to Exclusive Business Cooperation Agreement entered into on June 25, 2010, by and among TAL Beijing, Xueersi Education, Xueersi Network, and the shareholders of Xueersi Education and Xueersi Network, TAL Beijing or its designated affiliates have the exclusive right to provide each of Xueersi Education and Xueersi Network and their subsidiaries and schools comprehensive intellectual property licensing and various technical and business support services. Pursuant to the Exclusive Business Service Agreement entered into by and among group TAL Beijing, Xinxin Xiangrong and its shareholders on August 4, 2015, TAL Beijing and its designated affiliates have the exclusive right to provide Xinxin Xiangrong and its subsidiaries and schools (if any) comprehensive intellectual property licensing and various technical and business support services. The agreements are effective within the operation term of TAL Beijing, its subsidiaries and schools according to PRC Law, unless earlier terminated by mutual agreement of all parties.

Lebai Information, Lebai Education and its sole shareholder, subsidiaries and schools have entered into an Exclusive Business Service Agreement on October 26, 2015, the terms of which are substantially the same as the agreement of Xinxin Xiangrong summarized above. The term of such agreement is 10 years and will be renewed for another 10 years at Lebai Information’s discretion.

The services under each of these agreements include, but are not limited to, employee training, technology development, transfer and consulting services, public relation services, market survey, research and consulting services, market development and planning services, human resource and internal information management, network development, upgrade and ordinary maintenance services, and software and trademark licensing and other additional services as the parties may mutually agree from time to time. TAL Beijing, Lebai Information or their designated affiliates, owns the exclusive intellectual property rights developed in the performance of these agreements. As consideration for these services, TAL Beijing, Lebai Information or their designated affiliates are entitled to charge the VIEs and VIEs’ subsidiaries and schools service fees annually or regularly, and adjust the service fee rates from time to time at their discretion.

1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued

The VIE arrangements - continued

Call option agreement: Pursuant to the call option agreement entered into on February 12, 2009, by and among TAL Beijing, Xueersi Education, Xueersi Network and their respective shareholders, the respective shareholders of Xueersi Education and Xueersi Network unconditionally and irrevocably granted TAL Beijing or its designated party an exclusive option to purchase from Xueersi Education and Xueersi Network’ shareholders, to the extent permitted under PRC law, part of or all the equity interests in Xueersi Education and Xueersi Network, as the case may be, for the minimum amount of consideration permitted by the applicable law without any other conditions.

TAL Beijing, Xinxin Xiangrong and the shareholders of Xinxin Xiangrong have entered into a call option agreement on August 4, 2015. Lebai Information, Lebai Education and the sole shareholder of Lebai Education have entered into a call option agreement on October 26, 2015, the terms of which are substantially the same as the call option agreement summarized above.

Under each of these agreements, TAL Beijing or Lebai Information has the sole discretion to decide when to exercise the option, and whether to exercise the option in part or in full. Unless terminated early by mutual agreement of all parties, these agreements shall remain effective until TAL Beijing and Lebai Information exercise their purchase right to purchase all the VIEs’ equity interests according to these agreements.

Equity pledge agreement: Pursuant to the equity pledge agreements, dated on February 12, 2009, by and among TAL Beijing, Xueersi Education, Xueersi Network and the respective shareholders of Xueersi Education and Xueersi Network, and supplemental agreements, dated on June 25, 2010, by and among TAL Beijing, Xueersi Education, Xueersi Network and their respective shareholders, the shareholders of Xueersi Education and Xueersi Network unconditionally and irrevocably pledged all of their equity interests, including the right to receive declared dividends and the voting rights, in the Xueersi Education and Xueersi Network to TAL Beijing to guarantee Xueersi Education and Xueersi Network’s performance of their obligations under the exclusive technology support and service agreements. The shareholders of Xueersi Education and Xueersi Network agree that, without prior written consent of TAL Beijing, they will not transfer or dispose the pledged equity interests or create or allow any encumbrance on the pledged equity interests that would prejudice TAL Beijing’s interest.

TAL Beijing, Xinxin Xiangrong and the shareholders of Xinxin Xiangrong have entered into an equity pledge agreement on August 4, 2015. Lebai Information, Lebai Education and the sole shareholder of Lebai Education have entered into an equity pledge agreement on October 26, 2015, the terms of which are substantially the same as the agreements summarized above. These agreements are effective on the date of execution and terminate when all the secured rights under the relevant agreements, as the case may be, are completely fulfilled or terminated in accordance thereof.

Letter of Undertaking: All of the shareholders of Xueersi Education and Xueersi Network have executed a letter of undertaking to covenant with and undertake to TAL Beijing that, if, as the respective shareholders of Xueersi Education and Xueersi Network, such shareholders receive any dividends, interests, other distributions or remnant assets upon liquidation from Xueersi Education and Xueersi Network, such shareholders shall, to the extent permitted by applicable laws, regulations and legal procedures, remit all such income after payment of any applicable tax and other expenses required by laws and regulations to TAL Beijing without any compensation therefore. All the shareholders of Xinxin Xiangrong have made similar undertakings in the option agreement dated August 4, 2015, described above. The sole shareholder of Lebai Education has made similar undertakings in the power of attorney, dated October 26, 2015, described below.

Power of attorney: The shareholders of the VIEs have executed an irrevocable power of attorney appointing TAL Beijing or Lebai Information, as applicable, or any person designated by TAL Beijing or Lebai Information as their attorney-in-fact to vote on their behalf on all matters of the VIEs requiring shareholder approval under PRC laws and regulations and the articles of association of each of the VIEs on August 12, 2009, August 4, 2015 and October 26, 2015, respectively. These agreements remain effective during the entire period during which they are shareholders of the VIEs.

1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued

The VIE arrangements - continued

The articles of associations of each of the VIEs state that the major rights of the shareholders in shareholders’ meeting include the power to approve the operating strategy and investment plan, elect the members of board of directors and approve their compensation and review and approve annual budget and earning distribution plan. Therefore, through the irrevocable power of attorney arrangement TAL Beijing or Lebai Information has the ability to exercise effective control over each of the VIEs respectively through shareholder votes and, through such votes, to also control the composition of the board of directors. As a result of these contractual rights, the Company has the power to direct the activities of each of the VIEs that most significantly impact their economic performance.

Spousal consent letter: The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that she is aware of, and consents to, the execution by her spouse of the call option agreement described above. Each spouse further agrees that she will not take any actions or raise any claims to interfere with the performance by her spouse of the obligations under the above mentioned agreements.

Deed of undertaking: On June 24, 2013 and July 29, 2013, the Company and Mr. Bangxin Zhang executed a deed of undertaking dated June 24, 2013 and a side letter dated July 29, 2013, respectively (collectively, the “Deed”). Pursuant to the Deed, Mr. Bangxin Zhang has irrevocably covenanted and undertaken to the Company that:

●

as long as Mr. Bangxin Zhang owns shares in the Company, whether legally or beneficially, and directly or indirectly (including shares held through Mr. Bangxin Zhang’s personal holding company Bright Unison Limited or any other company, trust, nominee or agent, if any), representing more than 50% of the aggregate voting power of the then total issued and outstanding shares of the Company;

●

Mr. Bangxin Zhang will not, directly or indirectly, (i) request or call any meeting of shareholders for the purpose of removing or replacing any of existing directors or appointing any new director, or (ii) propose any resolution at any of shareholders meetings to remove or replace any of existing directors or appoint any new director; and should any meeting of shareholders be called by the board of directors or requisitioned or called by shareholders for the purpose of removing or replacing any of the directors or appointing any new director, or if any resolution is proposed at any of shareholder meetings to remove or replace any of the directors or appoint any new director, the maximum number of votes which Mr. Bangxin Zhang will be permitted to exercise shall be equal to the total aggregate number of votes of the then total issued and outstanding shares of the Company held by all members of the Company, other than shares which are owned, whether legally or beneficially, and directly or indirectly by Mr. Bangxin Zhang, less one vote; and

●

Mr. Bangxin Zhang will not cast any votes he has as a director or shareholder (if applicable) on any resolutions or matters concerning enforcing, amending or otherwise relating to the Deed being considered or voted upon by board of directors or shareholders, as the case may be.

In the opinion of Maples and Calder (Hong Kong) LLP, the Company’s Cayman Islands legal counsel, the deed of undertaking constitutes the legal, valid and binding obligations of Mr. Bangxin Zhang, which cannot be unilaterally revoked by Mr. Bangxin Zhang, and is enforceable in accordance with its terms under existing Cayman Islands laws.

Risks in relation to the VIE structure

The Company believes that TAL Beijing and Lebai Information’s contractual arrangements with the VIEs and their respective subsidiaries, schools and shareholders are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the Group would be subject to fines or potential actions by the relevant PRC regulatory authorities with broad discretions, which could include:

●

revoke the Group’s business and operating licenses;

●

require the Group to discontinue or restrict its operations;

●

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

1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued

Risks in relation to the VIE structure - continued

●

restrict the Group’s right to collect revenues or impose fines;

●

block the Group’s websites;

●

require the Group to restructure the operations in such a way as to compel the Group to establish a new enterprise, re-apply for the necessary licenses or relocate its businesses, staff and assets;

●

impose additional conditions or requirements with which the Group may not be able to comply; or

●

take other regulatory or enforcement actions against the Group that could be harmful to its business.

The imposition of any of these penalties could result in a material adverse effect on the Company’s ability to conduct the Group’s business. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of the VIEs, and the VIEs’ subsidiaries and schools, or the right to receive their economic benefits, the Company would no longer be able to consolidate the VIEs, and the VIEs’ subsidiaries and schools. The Company does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation or dissolution of the Company, TAL Beijing, Lebai Information, or the VIEs and their respective subsidiaries and schools.

The four legal owners of Xueersi Education and Xueersi Network are Mr. Bangxin Zhang, Mr. Yachao Liu, Mr. Yunfeng Bai, and Mr. Yundong Cao, and the three legal owners of Xinxin Xiangrong are Mr. Bangxin Zhang, Mr. Yachao Liu and Mr. Yunfeng Bai and the sole legal owner of Lebai Education is Xueersi Education. Mr. Bangxin Zhang, Mr. Yachao Liu and Mr. Yunfeng Bai are shareholders and directors or officers of TAL Education Group. Xueersi Education is a VIE of the Group. The interests of Mr. Bangxin Zhang, Mr. Yachao Liu, Mr. Yunfeng Bai and Mr. Yundong Cao as beneficial owners of Xueersi Education, Xueersi Network and Xinxin Xiangrong may differ from the interests of the Group as a whole, since these parties’ respective equity interests in Xueersi Education, Xueersi Network and Xinxin Xiangrong may conflict with their respective equity interests in the Group. When conflicts of interest arise, it is possible that any or all of these individuals may not act in the best interests of the Group, and such conflicts may not be resolved in the Group’s favor. In addition, these individuals may breach, or cause Xueersi Education, Xueersi Network and Xinxin Xiangrong, their subsidiaries and schools to breach, or refuse to renew, the existing contractual arrangements the Group has with them and Xueersi Education, Xueersi Network and Xinxin Xiangrong, their subsidiaries and schools. Other than the aforementioned deed of undertaking the Group entered with Mr. Bangxin Zhang, the Group currently does not have any arrangements to address potential conflicts of interest between these individuals and the Company. To a large extent, the Group relies on the legal owners of Xueersi Education, Xueersi Network and Xinxin Xiangrong to abide by the laws of the Cayman Islands and China, which provide that directors and officers owe a fiduciary duty to the Company that requires them to act in good faith and in the best interests of the Company and not to use their positions for personal gains. If the Group cannot resolve any conflict of interest or dispute between it and these individuals, the Group would have to rely on legal proceedings, which could result in disruption of its business and subject it to substantial uncertainty as to the outcome of any such legal proceedings.

1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued

The VIE arrangements - continued

The following consolidated financial statement balances and amounts of the Company’s VIEs and their subsidiaries and schools, were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions amongst the Company, its subsidiaries, its VIEs and VIEs’ subsidiaries and schools in the Group.


	As of February 29,		As of February 28,
	2020		2021

Cash and cash equivalents	$	350,035	$	820,301
Other current assets		159,706		324,568

Total current assets		509,741		1,144,869

Property and equipment, net		286,982		430,137
Other non-current assets		2,038,941		2,555,459

Total assets		2,835,664		4,130,465

Deferred revenue-current		733,253		1,328,473
Other current liabilities		898,959		1,488,763

Total current liabilities		1,632,212		2,817,236

Total non-current liabilities		891,633		1,163,622

Total liabilities	$	2,523,845	$	3,980,858


	For the year ended		For the year ended		For the year ended
	February 28		February 29,		February 28,
	2019		2020		2021

Net revenues	$	2,406,642	$	3,058,285	$	4,244,907
Net income	$	606,560	$	534,070	$	488,866


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Net cash provided by operating activities	$	409,103	$	215,892	$	727,661
Net cash used in investing activities	$	(346,183)	$	(134,936)	$	(224,235)
Net cash used in financing activities	$	(4,392)	$	(5,173)	$	(3,518)

1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued

The VIE arrangements - continued

As of February 28, 2019, February 29, 2020 and February 28, 2021, the balance of the amount payable by the VIEs and their subsidiaries and schools to TAL Beijing, Lebai Information or their designated affiliates related to the service fees was $128,088, $78,357 and $417,544, respectively, and was eliminated upon consolidation. Except for the collateralized construction project and land use rights in Zhenjiang disclosed in Note 14, there are no other consolidated VIEs’ assets that are collateral for the VIEs’ obligations and can only be used to settle the VIEs’ obligation.

Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of their paid-in capital and statutory reserve, to the Company in the form of loans and advances or cash dividends. Please refer to Note 24 for disclosure of restricted net assets.

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Feb. 28, 2021

SIGNIFICANT ACCOUNTING POLICIES

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 (“U.S. GAAP”).

Basis of consolidation

The consolidated financial statements include the financial statements of the Company, its subsidiaries, which are accounted for under the voting interest model, and its VIEs, VIEs’ subsidiaries and schools consolidated under the variable interest entity consolidation model. All inter-company transactions and balances have been eliminated upon consolidation.

Consolidation of Variable Interest Entities

The Company through TAL Beijing and Lebai Information, wholly owned foreign enterprises, has executed a series of contractual agreements with its VIEs, the VIEs’ subsidiaries and schools and the VIEs’ nominee shareholders. For a description of these contractual arrangements, see “Note 1 Organization and Principal Activities—The VIE Arrangements”. These contractual agreements do not provide TAL Beijing and Lebai Information with an equity interest in legal form in the VIEs. As the Company holds no legal form of equity ownership in the VIEs, the Company applied the variable interest entity consolidation model as set forth in Accounting Standards Codification 810, Consolidation (“ASC 810”) instead of the voting interest model of consolidation.

By design, the contractual agreements provide TAL Beijing and Lebai Information with the right to receive benefits equal to substantially all of the net income of these entities, and thus under ASC 810, these agreements are considered variable interests. Subsequent to identifying any variable interests, any party holding such variable interests must determine if the entity in which the interest is held is a variable interest entity and subsequently which reporting entity is the primary beneficiary of, and should therefore consolidate the variable interest entity.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Consolidation of Variable Interest Entities - continued

The contractual arrangements, by design, enable TAL Beijing and Lebai Information to have (a) the power to direct the activities that most significantly impact the economic performance of the VIEs and (b) the right to receive substantially all the benefits of the VIEs. As a result, the VIEs are considered to be variable interest entities under ASC 810 and TAL Beijing and Lebai Information are considered to be the primary beneficiary of the VIEs and consolidate the VIEs’ financial position and results of operations.

Determining whether TAL Beijing and Lebai Information are the primary beneficiaries requires a careful evaluation of the facts and circumstances, including whether the contractual agreements are substantive under the applicable legal and financial reporting frameworks, i.e. PRC law and U.S. GAAP. The Company continually reviews its corporate governance arrangements to ensure that the contractual agreements are indeed substantive.

The Company has determined that the contractual agreements are in fact valid and legally enforceable. Such arrangements were entered into in order to comply with the underlying legal and/or regulatory restrictions that govern the ownership of a direct equity interest in the VIEs. In the opinion of the Company’s PRC counsel, Tian Yuan Law Firm, the contracts are legally enforceable under PRC law. See “Note 1 Organization and Principal Activities—The VIE Arrangements”.

On June 24, 2013 and July 29, 2013, the Company and Mr. Bangxin Zhang executed a deed of undertaking dated June 24, 2013 and a side letter dated July 29, 2013, respectively (collectively, the “Deed”). Pursuant to the terms of the Deed, as long as Mr. Bangxin Zhang owns a majority voting interest, whether legally or beneficially, and directly or indirectly, in the Company, (1) Mr. Bangxin Zhang cannot request or call a meeting of shareholders or propose a shareholders resolution to appoint or remove a director, (2) if shareholders are asked to appoint or remove a director, the maximum number of votes which Mr. Bangxin Zhang will be permitted to exercise in connection with such shareholder approval is equal to the total aggregate number of votes of the then total issued and outstanding shares of the Company held by all members of the Company, other than shares which are owned, whether legally or beneficially, and directly or indirectly by Mr. Bangxin Zhang, less one vote and (3) if shareholders or board of directors are asked to consider or approve any matter related to the Deed, Mr. Bangxin Zhang cannot exercise his voting power.

Upon execution of the Deed, despite his ownership of and as long as he holds a majority voting interest, whether legally or beneficially, and directly or indirectly, in the Company, Mr. Bangxin Zhang will (1) not be permitted to requisition or call a meeting of shareholders or propose a shareholders resolution to appoint or remove a director, (2) in relation to any shareholder approvals to appoint or remove a director, only be permitted to exercise up to the number of votes equal to the total aggregate number of votes of the then total issued and outstanding shares of the Company held by all members of the Company, other than shares which are owned, whether legally or beneficially, and directly or indirectly by Mr. Bangxin Zhang, less one vote and (3) in relation to shareholders’ or board of directors’ consideration or approval of any matter related to the Deed, Mr. Bangxin Zhang cannot exercise his voting power. The terms of the Deed prevent Mr. Bangxin Zhang from controlling the rights of the Company as it relates to the contractual agreements, and accordingly, the Company retains a controlling financial interest in the VIEs and would consolidate them as the VIEs’ primary beneficiary.

Please see Note 1 for the presentation of condensed financial information of the VIEs and VIEs’ subsidiaries and schools, after elimination of intercompany balances and transactions.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenue, costs, and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements include purchase price allocation relating to business acquisitions, valuation allowance for deferred tax assets, the useful lives of intangible assets, impairment of intangible assets, long-lived assets, goodwill and long term investments, fair value assessment of long-term investments, discount rate for leases and consolidation of variable interest entities.

Cash and cash equivalents

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

Restricted cash

Cash that is restricted as to withdrawal or for use or pledged as security is separately reported. The Group’s restricted cash mainly represents security deposits held in designated bank accounts for future transactions, deposits required by PRC government authorities for establishing new schools and subsidiaries, deposits in connection with the facilities agreement disclosed in Note 14.

Short-term investments

Short-term investments include wealth management products, which are mainly deposits with variable interest rates placed with financial institutions and are restricted as to withdrawal and use. Investments are classified as held-to-maturity when the Group has the positive intent and ability to hold the securities to maturity, and are recorded at amortized cost. The original maturities of the short-term investments are greater than three months, but less than twelve months.

The Group reviews its investments in held-to-maturity investments for impairment periodically, recognizing an allowance, if any, by applying an estimated loss rate. The Group considers available evidence in evaluating the potential impairment of its investments in held-to-maturity investments. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the held-to-maturity investments. The allowance for credit losses was nil for the year ended February 28, 2021.

Investment products not classified as trading or as held-to-maturity are classified as available-for-sale debt securities, which are reported at fair value, with unrealized gains and losses recorded in “Accumulated other comprehensive (loss) / income” on the consolidated balance sheets. Realized gains or losses are included in earnings during the period in which the gain or loss is realized.

For investment products indexed to an underlying stock, stock market or foreign exchange, the Group elects the fair value option to record them at fair value in accordance with ASC 825 Financial Instruments. Changes in the fair value are reflected in the consolidated statements of operations.

Derivative Instruments

Derivative instruments are carried at fair value in accordance with Accounting Standards Codification 815. The fair values of the derivative financial instruments generally represent the estimated amounts expect to receive or pay upon termination of the contracts as of the reporting date.

2. SIGNIFICANT ACCOUNTING POLICIES – continued

Derivative Instruments – continued

As of February 28, 2021, the Group’s derivative instruments primarily consisted of foreign currency option contracts which aims to manage foreign currency exposure to certain extent. As the derivative instruments do not qualify for hedge accounting treatment, changes in the fair value are reflected in other income/(expense) of the consolidated statements of operations. The Group held certain security deposits in designated bank accounts as stipulated in the contracts, and classified them as restricted cash in the consolidated balance sheets.

As of February 28, 2021, and for the year ended February 28, 2021, the balance of the derivative instruments and the total amount of fair value changes are not material.

Property and equipment, net

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


Building		35-64 years
Computer, network equipment and software		3 years
Vehicles		4-5 years
Office equipment and furniture		3-5 years
Leasehold improvement		Shorter of the lease term or estimated useful lives

Construction in progress represents buildings and related premises under construction, which is stated at actual construction cost less any impairment loss. Construction in progress is transferred to building when completed and ready for its intended use.

Business combinations

Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed and any noncontrolling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interests of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition.

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

In a business combination achieved in stages, the Group remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the remeasurement gain or loss, if any, is recognized in the consolidated statements of operations.

2. SIGNIFICANT ACCOUNTING POLICIES – continued

Business combinations - continued

Where in a business combination, the noncontrolling shareholder received a put option to sell its entire noncontrolling interest of the acquiree to the Group at the price stipulated by the contract when option is exercised, the noncontrolling interest has been recorded as a redeemable noncontrolling interest presented in the mezzanine equity section of the consolidated balance sheets.

Acquired intangible assets, net

Acquired intangible assets other than goodwill consist of trade name and domain names, copyrights, teaching materials, user base, customer relationships, technology, partnership agreements, school cooperation agreements, licenses, etc., and are carried at cost, less accumulated amortization and impairment. Amortization of finite-lived intangible assets is computed using the straight-line method over the estimated useful lives. The amortization periods by intangible asset classes are as follows:


Trade name and domain names		1-10 years
Copyrights and teaching materials		3-10 years
User base and customer relationships		3-7 years
Technology		4-6 years
Partnership agreements and school cooperation agreements		4-6 years
Licenses		2-9 years
Others		1-7 years

Land use rights, net

All land in the PRC is owned by PRC government, which, according to the relevant PRC law, may grant the right to use the land for a specified period of time. Payment for acquiring land use rights are recorded at cost and amortized on a straight line basis over the term of the land certificates.

Impairment of long-lived assets

The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets.

Goodwill

The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheets as goodwill. Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired.

ASC 350-20 permits the Group to first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The Group early adopted ASU 2017-04: Intangibles-Goodwill and Other (Topic 350) in fiscal year 2020, which eliminated Step 2 from the goodwill impairment test on a prospective basis.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Goodwill - continued

Under ASU 2017-04, the Group performs its annual impairment test by comparing the fair value of a reporting unit with its carrying amount. The Group should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.

The Group recognized impairment loss on goodwill of nil, $28,998 and $107,399 for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively.

Long-term investments

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

Equity securities without readily determinable fair values

The Group adopted ASC Topic 321, Investments—Equity Securities (“ASC 321”) on March 1, 2018. Under ASC321, for equity securities without readily determinable fair value that qualify for the practical expedient to estimate fair value using net asset value per share, the Group estimates the fair value using net asset value per share and recorded the cumulative effect of the adjustment of $4,163 to the opening balance of retained earnings upon adoption of the new standard. For other equity securities without readily determinable fair value, the Group elected to use the measurement alternative to measure those investments at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.

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

Equity securities with readily determinable fair values

Equity securities with readily determinable fair value are measured at fair values, and any changes in fair value are recognized in the consolidated statements of operations.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Long-term investments-continued

Equity method investments

Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in common shares or in-substance common shares, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%, and other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. For certain investments in limited partnerships, where the Group holds less than a 20% equity or voting interest, the Group may also have significant influence.

Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into the consolidated statements of operations and accordingly adjusts the carrying amount of the investment. If financial statements of an investee cannot be made available within a reasonable period of time, the Group records its share of the net income or loss of an investee on a one quarter lag basis in accordance with ASC 323-10-35-6.

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

Available-for-sale investments

For investments in investees’ shares which are determined to be debt securities, the Group accounts for them as available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income as a component of shareholders’ equity. Declines in the fair value of individual available-for-sale investments below their amortized cost due to credit-related factors are recognized as an allowance for credit losses, whereas if declines in the fair value is not due to credit-related factors, the loss is recorded in other comprehensive income / (loss).

Fair value option investments

The Group elected the fair value option to account for certain investment whereby the change in fair value is recognized in the consolidated statements of operations.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Long-term investments - continued

Held-to-maturity investments

Long-term investments include wealth management products, which are mainly deposits with variable interest rates placed with financial institutions and are restricted as to withdrawal and use. The Group classifies the wealth management products as “held-to-maturity” securities.

Fair value

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows:

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

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

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

Fair value of financial instruments is disclosed in Note 15.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue recognition

On March 1, 2018, the Group adopted Revenue from Contracts with Customers (“Topic 606”), applying the modified retrospective method to all contracts that were not completed as of March 1, 2018.

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

The Group generates substantially all of its revenues through tutoring service with individual students in the PRC, in which revenue is recognized over time. In addition, the Group generates revenues from sales of products, consist primarily of books, which were insignificant for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, and were included in small class tutoring services, personalized premium services and others below. The following table presents the Group’s revenues disaggregated by revenue sources. The Group’s revenue is reported net of discounts, value added tax and surcharges.


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021
Disaggregation of net revenues
-Small class tutoring services, personalized premium services and others	$	2,223,347	$	2,655,323	$	3,221,161
-Online education services through www.xueersi.com		339,637		617,985		1,274,594

Total	$	2,562,984	$	3,273,308	$	4,495,755

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

(a) Small class tutoring services, personalized premium services and others

Small class tutoring services primarily consist of Xueersi Peiyou small class, Firstleap and Mobby. Personalized premium services are referring to Izhikang after-school one-on-one tutoring services. Each contract of small class tutoring service or personalized premium service is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fee is generally collected in advance and is initially recorded as deferred revenue. Tuition revenue is recognized proportionately as the tutoring sessions are delivered.

Generally, for small class tutoring services, the Group offers refunds for any remaining classes to students who decide to withdraw from a course. The refund is equal to and limited to the amount related to the undelivered classes. For personalized premium services, a student can withdraw at any time and receive a refund equal to and limited to the amount related to the undelivered classes. Historically, the Group has not had material refunds.

The Group distributes coupons to attract both existing and prospective students to enroll in its courses. The coupon has fixed dollar amounts and can only be used against future courses. The coupon is not considered a material right to the customer and accounted for as a reduction of transaction price of the service contract.

Other revenues are primarily derived from one-on-one online tutoring services for children, artificial intelligence (“AI”) interactive courses provided on the Group’s online platforms, and books related to preschool and K-12 education. Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue recognition - continued

(b) Online education services through www.xueersi.com

The Group provides online education services, including live class and pre-recorded course content, to its students through www.xueersi.com.

Students enroll for online courses through www.xueersi.com by the use of prepaid study cards or payment to the Group’s online accounts. Each contract of the online education service is accounted for as single performance obligation which is satisfied ratably over the service period. The proceeds collected are initially recorded as deferred revenue. For live class courses, revenues are recognized proportionately as the tutoring sessions are delivered. For pre-recorded course content, revenues are recognized on a straight line basis over the subscription period from the date in which the students activate the courses to the date in which the subscribed courses end. Refunds are provided to the students who decide to withdraw from the subscribed courses within the course offer period and a proportional refund is based on the percentage of untaken courses to the total courses purchased. Historically, the Group has not experienced material refunds.

As a practical expedient, the Group elects to record the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. In addition, the Group determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. Reclassification was made from deferred revenue to refund liabilities, which was recorded under accrued expenses and other current liabilities, for tuition collected that expected to be refunded to the customers in the future if students withdraw from a course for the remaining classes.

The contract liabilities of deferred revenue was $781,000 as of February 29, 2020, substantially all of which was recognized as revenue during the year ended February 28, 2021. As of February 28, 2021, the contract liabilities of deferred revenue was $1,417,498. The difference between the opening and closing balances of the Group’s contract liabilities primarily results from the timing difference between the Group’s satisfaction of performance obligation and the customer’s payment.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Share-based compensation

Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital. For share-based awards granted with performance condition, the compensation cost is recognized when it is probable that the performance condition will be achieved. The Group reassesses the probability of achieving the performance condition at the end of each reporting date and records a cumulative catch-up adjustment for any changes to its assessment. Forfeitures are recognized as they occur. Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement.

Value added tax (“VAT”)

Pursuant to the PRC tax laws, in case of any product sales, the VAT rate is 3% of the gross sales for small scale VAT payer and 16% (13% starting April 1, 2019) of the gross sales for general VAT payer. TAL Beijing and Xueersi Education are deemed as general VAT payer since January 2010, and August 2010, respectively, for the sales of guidance materials and the intercompany sales of self-developed software. For general VAT payer, VAT on sales is calculated at 16% (13% starting April 1, 2019) on revenue from product sales and paid after deducting input VAT on purchases. The net VAT balance between input VAT and output VAT is reflected in the accounts under other taxes payable.

The Group’s online education services and inter-company technical services are subject to VAT at the rate of 6% of revenue for general VAT payer, Beijing Xintang Sichuang, TAL Beijing, Xueersi Education and Yidu Huida are deemed as general VAT payers at the rate of 6% since September 2012. Zhixuesi Beijing was deemed as general VAT payer at the rate of 6% since August 2013 and elected a simple VAT collection method at the rate of 3% since November 2016. Xinxin Xiangrong and Pengxin TAL were deemed general VAT payers at the rate of 6% since June 2015 and May 2016, respectively. Yizhen Xuesi was deemed as general VAT payer at the rate of 6% since November 2016.

Pursuant to Cai Shui [2018] No. 53 in June 2018 and Cai Shui [2021] No. 10 in March 2021, Xueersi Education enjoyed VAT exemption from 2018 to 2023 for its book sales.

Since May 2016, in accordance with Cai Shui [2016] No. 68, non-academic education service providers who are general VAT payer could elect a simple VAT collection method and apply for a 3% VAT rate. The Group’s schools which were previously subject to business tax are now subject to a VAT rate of 3%.

Since May 2018, in accordance with Cai Shui [2018] No.32, the VAT rate decreased to 16% of the gross sales for general VAT payer. For general VAT payer of the Group, VAT on sales is calculated at 16% on revenue from product sales and paid after deducting input VAT on purchases starting on May 1, 2018. In accordance with Cai Shui [2019] No.39, the VAT rate above decreased to 13% starting on April 1, 2019.

2. SIGNIFICANT ACCOUNTING POLICIES – continued

Value added tax (“VAT”) – continued

Since January 2020, in accordance with Cai Shui [2020] No.8, due to the COVID-19 pandemic, the VAT on certain services was temporarily exempted from January 2020 to March 2021.

Operating leases

On March 1, 2019, the Group adopted New Leasing Standard (“ASC 842”), using the modified retrospective transition method resulting in the recording of operating lease right-of-use (ROU) assets of $1,024,863 and operating lease liabilities of $1,026,728 upon adoption. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance.

The Group determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to record in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Group has elected the package of practical expedients, which allows the Group not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Group also elected the practical expedient not to separate lease and non-lease components of contracts. Lastly, for lease assets other than real estate, such as printing machine and electronic appliances, the Group elected the short-term lease exemption as their lease terms are 12 months or less.

As the rate implicit in the lease is not readily determinable, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. The Group’s leases often include options to extend and lease terms include such extended terms when the Group is reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when the Group is reasonably certain not to exercise those options. Lease expense is recorded on a straight-line basis over the lease term.

Advertising costs

The Group expenses advertising costs as incurred, which mainly include advertising expenditure through social media, search engines and outdoor advertising, etc. Total advertising costs incurred were $114,697, $248,807 and $803,120 for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively, and have been included in selling and marketing expenses in the consolidated statements of operations.

Government subsidies

The Group reports government subsidies as other income when received from local government authority with no limitation on the use of the subsidies. From time to time, the Group receives government subsidies related to government sponsored projects and records such government subsidies as a liability when received and recognizes as other income when the performance obligation is met or fulfilled.

Foreign currency translation

The functional and reporting currency of the Company is the United States dollar. The functional currency of the Company’s PRC subsidiaries, VIEs and VIEs’ subsidiaries and schools in the PRC is Renminbi (“RMB”).

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Foreign currency translation - continued

Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations. For the years ended February 28, 2019, February 29, 2020 and February 28, 2021, the Group recorded exchange loss of $3,108, exchange loss of $968 and exchange gain of $12,311, respectively, in other expense/income in the consolidated statements of operations.

For translating the results of the PRC subsidiaries into the functional currency of the Company, assets and liabilities are translated from each subsidiary’s functional currency to the reporting currency at the exchange rate on the balance sheet date. Equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and comprehensive income / (loss).

Foreign currency risk

RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Cash and cash equivalents, and restricted cash of the Group included aggregate amounts of $1,435,739 and $1,754,509 as of February 29, 2020 and February 28, 2021, respectively, which were denominated in RMB.

Income taxes

Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities.

Comprehensive income / (loss)

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

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Concentration of credit risk

Financial instruments that potentially expose the Group to significant concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and restricted cash. The Group places its cash and cash equivalents, short-term investments and restricted cash in financial institutions with high credit ratings.

Financial instruments

The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, short-term investments, long-term investments accounted for available-for-sale investments, fair value option investment, equity securities with readily determinable fair values, equity securities without readily determinable fair values, held-to-maturity investments, amounts due from related parties and amounts due to related parties, accounts payable, income tax payable, short-term debt, long-term debt and bond payable. The Group carries its available-for-sale investments, equity securities with readily determinable fair values and fair value option investment at fair value. The carrying amounts of short-term debt and long-term debt approximate fair value as their interest rates are at the same level of current market yield for comparable debts. The carrying amounts of other financial instruments, except for bond payable, equity securities without readily determinable fair values and long-term held-to-maturity investments, approximate their fair values because of their generally short maturities. The bond payable and long-term held-to-maturity investments are recorded at amortized cost.

Net income / (loss) per share

Basic net income / (loss) per share is computed by dividing net income / (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted net income / (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised into common shares. Common share equivalents are excluded from the computation of the diluted net income / (loss) per share in years when their effect would be anti-dilutive. The Group has share options, non-vested shares and bond payable which could potentially dilute basic earnings per share in the future. To calculate the number of shares for diluted net income / (loss) per share, the effect of the share options and non-vested shares is computed using the treasury stock method. The dilutive effect of the bond payable is computed using as-if converted method.

As the Group incurred net loss for the years ended February 29, 2020 and February 28, 2021, the effect of potential issuances of the shares for the non-vested shares and share options would be anti-dilutive. Therefore, basic and diluted losses per share are the same in the periods.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Recent accounting pronouncements adopted

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Group adopted this standard on March 1, 2020, using a modified retrospective transition method and did not restate the comparable periods, which resulted in a cumulative-effect adjustment to decrease the opening balance of retained earnings on March 1, 2020 by $6,651, including the allowance for credit losses for account receivables, loan receivable and amounts due from certain equity method investees.

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value”. ASU 2018-13 removes and modifies existing disclosure requirements on fair value measurement, namely regarding transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. Additionally, ASU 2018-13 adds further disclosure requirements for Level 3 fair value measurements, specifically changes in unrealized gains and losses and other quantitative information. ASU 2018-13 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. The Group adopted this new standard beginning March 1, 2020 with no material impact on its consolidated financial statements.

Recent accounting pronouncements not yet adopted

In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), which clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, Investments—Equity Method and Joint Ventures, for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, including early adoption in an interim period, for periods for which financial statements have not yet been issued. The adoption of this standard is not expected to have a material impact on the Group’s consolidated financial statements.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Recent accounting pronouncements not yet adopted - continued

In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which focuses on amending the legacy guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity. ASU 2020-06 simplifies an issuer’s accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. Further, ASU 2020-06 enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share (EPS) guidance, i.e., aligning the diluted EPS calculation for convertible instruments by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in the diluted EPS calculation when an instrument may be settled in cash or shares, adding information about events or conditions that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed. This update will be effective for the Group’s fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the new guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Group is currently in the process of evaluating the impact of adopting ASU 2020-06 on its consolidated financial statements and related disclosures.

BUSINESS ACQUISITION

12 Months Ended

Feb. 28, 2021

BUSINESS ACQUISITION

BUSINESS ACQUISITION

3. BUSINESS ACQUISITION

Business acquisitions in fiscal year 2021:

Acquisition of Dada Education Group (“Dada”)

As of February 29, 2020, the Group held 22.7% equity interest in Dada, which was accounted for as available-for-sale investment. Dada is a company providing one-on-one online English tutoring for children. On April 30, 2020, the Group increased its shareholding to 92.6% with additional cash consideration of $10,437 and obtained control of Dada.

The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at 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 was measured at fair value using the discounted cash flow method and taking into account certain factors including the management projection of discounted future cash flow and an appropriate discount rate. A remeasurement gain of $3,855 was recognized in connection with the acquisition.

The purchase price was allocated as of April 30, 2020, the date of acquisition, as follows:


			Amortization
	US$		period

Cash and cash equivalents	$	1,269
Net assets acquired, excluding cash and cash equivalents, intangible assets and related deferred tax liabilities		(172,118)
Intangible assets, net
User base and customer relationships		7,576	2 years
Trade name and domain names		13,452	5 years
Others		3,044	1 year
Goodwill		168,233
Deferred tax liabilities		(6,018)
Noncontrolling interests		(1,146)

Total purchase consideration	$	14,292

3. BUSINESS ACQUISITION – continued

Business acquisitions in fiscal year 2021–continued:

The purchase price allocation was determined by the Group with the assistance of an independent valuation appraiser. The fair value of the acquired intangible assets was measured by using the “multi-period excess earnings method (MEEM)”, “relief from royalty” and “replacement cost” valuation methods. Goodwill resulted from the acquisition is not deductible for tax purposes, which was primarily attributable to intangible assets that cannot be recognized separately as identifiable assets under GAAP, and comprised (a) the assembled workforce and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition.

Other acquisition

During the year ended February 28, 2021, the Group made another acquisition with total purchase price of $2,936 in cash. The intangible assets acquired and goodwill resulted from the acquisition were $1,351 and $1,660, respectively. Goodwill resulted from the acquisition is not deductible for tax purposes.

The results of operations for all these acquired entities have been included in the Group’s consolidated financial statements from their respective acquisition dates.

The following summarized unaudited pro forma results of operations for the years ended February 29, 2020 and February 28, 2021 assuming that these acquisitions during the year ended February 28, 2021 occurred as of March 1, 2019. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of March 1, 2019, nor is it indicative of future operating results.


	For the years ended
	February 29/28
	2020		2021
		(Unaudited)		(Unaudited)

Pro forma net revenues	$	3,376,955	$	4,516,022
Pro forma net loss attributable to TAL Education Group	$	(173,199)	$	(119,780)
Pro forma net loss per share - basic	$	(0.87)	$	(0.59)
Pro forma net loss per share - diluted	$	(0.87)	$	(0.59)

Business acquisitions in fiscal year 2020:

During the year ended February 29, 2020, the Group made two acquisitions with total purchase price of $2,853, all for cash consideration. The intangible assets and goodwill acquired from the acquisitions were $321 and $3,999, respectively. The acquired goodwill is not deductible for tax purposes.

The results of operations for all these acquired entities have been included in the Group’s consolidated financial statements from their respective acquisition dates.

3. BUSINESS ACQUISITION – continued

Business acquisitions in fiscal year 2020–continued:

The following summarized unaudited pro forma results of operations for the years ended February 28, 2019 and February 29, 2020 assuming that these acquisitions during the year ended February 29, 2020 occurred as of March 1, 2018. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of March 1, 2018, nor is it indicative of future operating results.


	For the years ended
	February 28/29
	2019		2020
	(Unaudited)		(Unaudited)

Pro forma net revenues	$	2,563,413	$	3,273,549
Pro forma net income/ (loss) attributable to TAL Education Group	$	367,041	$	(110,263)
Pro forma net income/ (loss) per share - basic	$	1.93	$	(0.56)
Pro forma net income/ (loss) per share - diluted	$	1.83	$	(0.56)

Business acquisitions in fiscal year 2019:

Acquisition of Shanghai Xiaoxin Information and Technology Co., Ltd (“Shanghai Xiaoxin”)

As of February 28, 2018, the Group held 39.7% equity interest in Shanghai Xiaoxin, which was accounted for as equity method investment. Shanghai Xiaoxin is an education technology company primarily engaged in the development of communication tools between teachers and students. On January 24, 2019, the Group increased its shareholding to 69.2% with additional cash consideration of $69,798 and obtained control of Shanghai Xiaoxin.

The purchase price consisted of the following:


	US$

Cash consideration	$	69,798
Fair value of the previously held 39.7% equity interest:
Carrying amount		2,035
Gain on remeasurement of fair value as of acquisition date		26,291

Total	$	98,124

3. BUSINESS ACQUISITION – continued

Business acquisitions in fiscal year 2019 – continued:

The purchase price was allocated as of January 24, 2019, the date of acquisition, as follows:


			Amortization
	US$		period

Cash and cash equivalents	$	11,310
Net assets acquired, excluding cash and cash equivalents, intangible assets and related deferred tax liabilities		19,860
Intangible assets
User base		8,152	7 years
Technology		1,283	5 years
Goodwill		89,536
Deferred tax liabilities		(2,359)
Noncontrolling interests		(29,658)

Total purchase consideration	$	98,124

The purchase price allocation, as disclosed, was determined by the Group with the assistance of an independent valuation appraiser. The fair value of the purchased intangible assets was measured by using the “replacement cost” and “relief from royalty” valuation methods. The acquired goodwill is not deductible for tax purposes. The goodwill was primarily attributable to intangible assets that cannot be recognized separately as identifiable assets under GAAP, and comprise (a) the assembled workforce and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition.

Other acquisitions

During the year ended February 28, 2019, the Group made several other acquisitions with total purchase price of $54,289, including cash consideration of $44,356, stock consideration valued at $3,703 and previously held equity interests in the investees at fair value of $6,230. $1,726 of the stock consideration had been settled through the issuance of 20,502 Class A common shares in fiscal year 2019 and the remaining $1,977 stock consideration was recorded as Class A common shares issuable as of February 28, 2019. The intangible assets and goodwill acquired from the acquisitions were $11,943 and $40,238, respectively. The acquired goodwill is not deductible for tax purposes.

The results of operations for all these acquired entities have been included in the Group’s consolidated financial statements from their respective acquisition dates.

3. BUSINESS ACQUISITION - continued

Business acquisitions in fiscal year 2019–continued:

The following summarized unaudited pro forma results of operations for the years ended February 28, 2019 and February 29, 2020 assuming that these acquisitions during the year ended February 28, 2019 occurred as of March 1, 2017. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of March 1, 2017, nor is it indicative of future operating results.


	For the years ended
	February 28,
	2018		2019
		(Unaudited)		(Unaudited)

Pro forma net revenues	$	1,725,115	$	2,570,616
Pro forma net income attributable to TAL Education Group	$	187,607	$	357,886
Pro forma net income per share - basic	$	1.07	$	1.88
Pro forma net income per share - diluted	$	0.98	$	1.79

SHORT-TERM INVESTMENTS

12 Months Ended

Feb. 28, 2021

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS

4. SHORT-TERM INVESTMENTS

Short-term investments consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Held-to-maturity investments ⁽¹⁾	$	345,457	$	1,927,862
Variable-rate financial instruments ⁽²⁾		—		457,723
Available-for-sale securities⁽³⁾		—		308,970

	$	345,457	$	2,694,555

(1)

The Group purchased wealth management products from financial institutions and classified them as held-to-maturity investments as the Group has the positive intent and ability to hold the investments to maturity. The maturities of these financial products range from three months to twelve months. The Group estimated that their fair value approximate their amortized costs.

(2)

The Group purchased several investment products indexed to certain stock, stock market or foreign exchange with maturities less than one year. The Group accounted for them at fair value and recognized a loss of $450 resulting from changes in fair value for the year ended February 28, 2021.

(3)

The short-term available-for-sale securities include wealth management products issued by commercial banks and other financial institutions with variable rates where principal is unsecured but no restriction on withdrawal. The Group accounted for them at fair value and recognized a fair value decrease of $1,032 through other comprehensive income / (loss) for the year ended February 28, 2021.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Feb. 28, 2021

PREPAID EXPENSES AND OTHER CURRENT ASSETS

PREPAID EXPENSES AND OTHER CURRENT ASSETS

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Accounts receivables	$	42,654	$	25,907
Prepayments to suppliers ⁽¹⁾		55,342		198,452
Interest receivable		22,108		44,614
Staff advances ⁽²⁾		3,206		3,175
Loan to employees, current portion ⁽³⁾		4,413		2,862
Other deposits		7,550		8,039
Prepaid VAT		6,284		33,656
Prepaid rental and related fee ⁽⁴⁾		7,335		8,057
Receivables from investees ⁽⁵⁾		13,304		—
Loans to third-parties ⁽⁶⁾		5,883		5,472
Receivables of withholding tax for employees related to share incentive plan ⁽⁷⁾		34,720		61,526
Others		4,553		11,350

	$	207,352	$	403,110

(1)

Prepayments to suppliers are primarily for advertising fees and other prepaid operating expenses.

(2)

Staff advances are provided to employees primarily for traveling, office expenses and other expenditures which are subsequently expensed as incurred.

(3)

The Group offers housing benefit plan to employees who have been employed by the Group for three years or more and met certain performance criteria. Under this benefit plan, the eligible employees receive interest-free loans for purposes of property purchases. Each loan has a term of four years and must be repaid by equal annual installments.

(4)

The Group adopted ASC 842 on March 1, 2019, using the modified retrospective transition approach allowed under ASU 2018-11 as described in Note 2. After the adoption of ASC 842, the prepaid rental are included in the Group’s operating lease right-of-use assets on its consolidated balance except for the prepaid rental related to the contract that has been entered into but not yet commenced.

(5)

In fiscal year 2020, two domestic investees of the Group initiated setting up their VIEs which is a process of re-organization under common control. The original investment amount would be returned from PRC investees and the same amount has already been reinvested to the overseas holding companies of the two investees. The Group received the repayments from the investees in fiscal year 2021.

(6)

Loans to third-parties are generally mature in less than one year, and certain loan was guaranteed by the borrower’s equity interests.

(7)

The Group pays for withholding tax on behalf of employees when their non-vested shares were vested or their options were exercised and agreed to repay the tax by deduction from the proceeds of shares sold subsequent to the option exercise through the Group’s broker. The receivable represents cash to be received from the broker to the above transaction.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Feb. 28, 2021

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

6. PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Building	$	59,489	$	64,246
Leasehold improvement		316,528		446,203
Computer, network equipment and software		178,876		260,265
Vehicles		704		877
Office equipment and furniture		30,596		34,571
Construction in progress		16,025		59,492

Total cost of property and equipment		602,218		865,654
Less: accumulated depreciation		(235,562)		(354,239)

	$	366,656	$	511,415

For the years ended February 28, 2019, February 29, 2020 and February 28, 2021, depreciation expenses were $76,669, $99,511 and $136,960, respectively.

In December 2019, the Group entered into contracts for the development of office space on parcels in Beijing and Jiangsu. The direct costs related to the construction were capitalized as construction in progress for the years ended February 29, 2020 and February 28, 2021.

INTANGIBLE ASSETS, NET

12 Months Ended

Feb. 28, 2021

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET

7. INTANGIBLE ASSETS, NET

Intangible assets, net, consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Trade name and domain names	$	27,982	$	41,707
User base and customer relationships		24,803		32,378
Licenses		28,476		28,796
Technology		13,230		14,308
Copyrights and teaching materials		5,974		6,026
Partnership agreements and school cooperation agreements		4,858		4,858
Others		2,687		5,655

Total cost of intangible assets		108,010		133,728
Less: accumulated amortization		(45,930)		(70,012)
Less: accumulated impairment loss		(358)		(358)
Add: foreign exchange difference		(2,737)		2,683

	$	58,985	$	66,041

The Group recorded amortization expense of $12,166, $15,677 and $24,030 for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively.

Estimated amortization expense of the existing intangible assets for the next five years is $20,837, $14,543, $11,110, $9,431 and $6,324, respectively.

The impairment loss on acquired intangible assets was nil, nil and $136 for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively.

LAND USE RIGHTS, NET

12 Months Ended

Feb. 28, 2021

LAND USE RIGHTS, NET

LAND USE RIGHTS, NET

8. LAND USE RIGHTS, NET

Land use rights, net, consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Land use rights	$	207,657	$	207,657
Less: accumulated amortization		(2,804)		(7,149)

Add: foreign exchange difference		—		16,194

Land use rights, net	$	204,853	$	216,702

The Group acquired two land use rights. The first one was at total cost of approximately RMB92 million for approximately 83,025 square meters of land in Zhenjiang, Jiangsu on March 19, 2019, for the development of office space. The second one was acquired at RMB1,360 million for approximately 28,600 square meters of land in Beijing on July 8, 2019, for the development of office space.

According to land use right policy in the PRC, the Group has a 50-year use right over the land in Zhenjiang and in Beijing, which is used as the basis for amortization.

Amortization expense for land use rights for the year ended February 29, 2020 and February 28, 2021, were $2,804 and $4,345, respectively. The Group expects to recognize $4,531 in amortization expense for each of the next five years and $194,047 thereafter.

GOODWILL

12 Months Ended

Feb. 28, 2021

GOODWILL

GOODWILL

9. GOODWILL

Changes in the carrying amount of goodwill for the years ended February 29, 2020 and February 28, 2021 consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Beginning balance	$	415,752	$	409,435
Addition (Note 3)		3,999		169,893
Accumulated impairment loss		(30,522)		(137,921)
Disposal and write-off		—		(2,652)
Exchange difference		(10,316)		15,658

Goodwill, net	$	378,913	$	454,413

In the annual goodwill impairment assessment, the Group concluded that the carrying amounts of certain reporting units exceeded their respective fair values and recorded impairment losses of nil, $28,998 and $107,399 for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively. The fair value of the reporting units was determined by the Group with the assistance of independent valuation appraisers using the income-based valuation methodology.

As of February 28, 2021, the amount of goodwill allocated to one reporting unit with negative carrying amount was $168,233.

LONG-TERM INVESTMENTS

12 Months Ended

Feb. 28, 2021

LONG-TERM INVESTMENTS

LONG-TERM INVESTMENTS

10. LONG-TERM INVESTMENTS

Long-term investments consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Equity securities with readily determinable fair values
BabyTree Inc. (“BabyTree”) ⁽¹⁾		26,696		23,467

Equity securities without readily determinable fair values
Xiamen Meiyou Information and Technology Co., Ltd. (“Xiamen Meiyou”) ⁽²⁾		47,068		50,832
Other investments ⁽³⁾		84,681		91,145

Equity method investments
Long-term investment in third-party technology companies ⁽⁴⁾		102,314		100,018

Fair value option investment
Long-term investment in a third-party technology company		7,258		7,661

Available-for-sale investments
Changing Education Inc. (“Changing”) ⁽⁵⁾		148,405		148,955
Ximalaya Inc. (“Ximalaya”) ⁽⁶⁾		46,612		59,326
Other investments ⁽⁷⁾		108,567		153,507

Held-to-maturity investments ⁽⁸⁾		—		32,725

Total	$	571,601	$	667,636

(1)

In January 2014, the Group acquired minority equity interests in BabyTree by purchasing its Series E convertible redeemable preferred shares with a total cash consideration of $23,475. BabyTree is an online parenting community and an online retailer of maternity and kids products.

In fiscal year 2019, the Group recognized disposal gain of $760, due to the partial disposal of the equity interest in BabyTree Inc. to a related party.

10. LONG-TERM INVESTMENTS – continued

On November 27, 2018, BabyTree was listed on the Hong Kong Stock Exchange and its preferred shares were converted to ordinary shares upon the completion of the listing. The investment was then reclassified from available-for-sale investment to equity security with readily determinable fair value upon the listing. Accordingly, $95,491 fair value changes of the investment was transferred from accumulated other comprehensive income to other income in the consolidated statements of operations in fiscal year ended February 28, 2019.

In fiscal year 2020 and 2021, the stock price of BabyTree declined, and accordingly the Group recognized loss of $105,447 and $3,229, respectively, due to the fair value change.

(2)

In December 2018, the Group acquired 15.32% equity interest in Xiamen Meiyou, an internet company focusing on providing services to female clients. Since June 2019, the investment was reclassified from equity method to equity investment without readily determinable fair value as the Group lost the ability to exercise significant influence due to the restructured capital of Xiamen Meiyou. As of February 28, 2021, no impairment loss was recorded in regard to the investment.

(3)

The Group holds equity interests in certain third-party private companies through investments in their common shares or in-substance common shares, which were accounted for using the cost method prior to the adoption of ASC 321. After the adoption of ASC 321, the Group accounted for these equity investments using the measurement alternative when equity method is not applicable and there is no readily determinable fair value for the investments. The Group recorded $14,489, $3,444 and $3,063 impairment loss on these investments during the fiscal years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively. For equity securities without readily determinable fair value that qualify for the practical expedient to estimate fair value using net asset value per share, the Group estimates the fair value using net asset value per share and recorded fair value gain of $1,751, $1,165 and $7,588 to the consolidated statements of operations for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively.

(4)

The Group holds minority equity interests in several third-party private companies through investments in their common shares or in-substance common shares. Majority of the long-term investments are companies which engage in online education services. The Group accounts for these investments under the equity method because the Group has the ability to exercise significant influence but does not have control over the investees.

The Group recorded $8,719, $17,198 and $11,471 impairment loss for its equity method investments during the fiscal years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively.

(5)

In fiscal year 2016 through 2020, the Group acquired Series B+, Series C, Series D and Series E convertible redeemable preferred shares of Changing which operates a customer-to-customer mobile tutoring platform and provides tutoring services in China. As of February 28, 2021, the Group held 34.55% equity interest of Changing. The Group accounted for the investment as available-for-sale investments since the investee’s preferred shares held are determined to be debt securities.

10. LONG-TERM INVESTMENTS – continued

(6)

In fiscal year 2017 and 2020, the Group completed two transactions with Ximalaya, a professional audio sharing platform, to acquire its Series C+ and E-2 convertible redeemable preferred shares. As of February 28, 2021, the Group held 1.69% equity interest of Ximalaya, and accounted for the investment as available-for-sale investments since the investee’s preferred shares held are determined to be debt securities.

(7)

The Group acquired minority equity interest in several third-party private companies, the majority of which are engaged in online platform or online education services. The Group holds minority equity interests of these companies through purchasing their convertible redeemable preferred shares. The Group accounted for these investments as available-for-sale investments since the investee’s preferred shares held are determined to be debt securities. The Group recorded $34,883, $2,137 and $10,029 impairment loss during the years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively.

(8)

The Group purchased wealth management products from financial institutions in China and classified them as held-to-maturity investments as the Group has the positive intent and ability to hold the investments to maturity. The original maturities of these financial products were two years and recorded at amortized cost. The Group estimated that their fair value approximate their carrying amount.

LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS

12 Months Ended

Feb. 28, 2021

LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS

LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS

11. LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS

Long-term prepayments and other non-current assets consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Long-term prepayments ⁽¹⁾	$	36,989	$	154
Loan to employees ⁽²⁾		3,940		3,700
Loan receivable ⁽³⁾		32,661		36,012
Other non-current assets ⁽⁴⁾		11,685		17,828

	$	85,275	$	57,694

(1)

The balances at February 29, 2020 and February 28, 2021 represented the Group’s prepayments to acquire equity interests in third-party companies.

(2)

Please see Note 5(3) for details of loan to employees.

11. LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS – continued

(3)

The balances represented long-term loans to certain third parties with original maturity over one year. Accumulated interest income of $5,368 and $8,010 was accrued as of February 29, 2020 and February 28, 2021, respectively. The interest will be due, together with the principals, at maturity. The third parties pledged their equity interests in other companies to the Group to guarantee the loan principals and interests.

(4)

As of February 29, 2020 and February 28, 2021, other non-current assets were primarily made up of prepayment for property and equipment, the construction in process and long-term service fees.

The Group recognized nil, nil and $30,724 impairment loss of long-term prepayments and other non-current assets during the fiscal years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Feb. 28, 2021

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Accrued employee payroll and welfare benefits	$	292,001	$	476,224
Refund liabilities		168,118		205,688
Accrued operating expenses		40,323		142,558
Other taxes payable		7,826		28,143
Payable for investments and acquisitions		404		312
Professional service fee payable		13,994		8,716
Payable for acquisitions of intangible assets		1,436		866
Interest payable		1,267		1,727
Others		27,281		47,049

Total	$	552,650	$	911,283

BOND PAYABLE

12 Months Ended

Feb. 28, 2021

BOND PAYABLE

BOND PAYABLE

13. BOND PAYABLE

On January 28 and 29, 2021, the Company issued $1,250,000 and $1,050,000 in aggregate principal amount of convertible bond due on February 1, 2026 (“the Bond”), unless earlier repurchased, converted or redeemed. The Bond bears interest at a rate of 0.5% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2021.

The net proceeds from the Bond were $2,300,000. The Company has accounted for the Bond as a single instrument as bond payable. The value of the Bond is measured by the cash received. Interest expense of $1,039 were recognized for the year ended February 28, 2021.

The main terms of the Bond are summarized as follows:

Conversion

The Bond are convertible into the Company’s ADSs, at the option of the holders, in integral multiples of one thousand dollars principal amount, at any time prior to the close of business on the scheduled trading day immediately preceding the maturity date. The conversion rate equals 12.4611 ADSs per one thousand dollars principal amount of the Bond, which represents the adjusted conversion price of $80.25 per ADS. During the year ended February 28, 2021, no bond was converted.

Redemption

The Company does not have the right to redeem the Bond prior to maturity. Holders of the Bond have the right to require the Company to repurchase in cash all or part of their Bond on February 1, 2026 or upon the occurrence of certain fundamental changes at a repurchase price equal to 100% of the principal amount of the Bond to be repurchased, plus any accrued and unpaid interest to, but excluding, the repurchase date.

LONG-TERM DEBT AND SHORT-TERM DEBT

12 Months Ended

Feb. 28, 2021

LONG-TERM DEBT AND SHORT-TERM DEBT

LONG-TERM DEBT AND SHORT-TERM DEBT

14. LONG-TERM DEBT AND SHORT-TERM DEBT

Facilities Agreement of 2019

On February 1, 2019, the Company entered into a three-year $600,000 term and revolving facilities agreement (the “Facilities Agreement of 2019”) with a group of arrangers led by Deutsche Bank AG, Singapore Branch. The facilities, a $270,000 three-year bullet maturity term loan and a $330,000 three-year revolving facility, are priced at 175 basis points over LIBOR. The interest is payable on a quarterly basis. The Company also paid commitment fee of 0.35% per annum based on the undrawn portion of the facilities for the period commencing on the commitment fee accrual commencement date to the end of the availability period applicable to the facilities. The use of proceeds of the facilities are for general corporate purposes.

The Facilities Agreement of 2019 contains financial covenants on the Group’s equity, interest cover and leverage, and also it has acceleration clauses about the occurrence of an event of default. The Company is required to maintain restricted cash equivalent to a three-month period of interest expense on the draw down for the duration of the Facilities Agreement of 2019.

14. LONG-TERM DEBT AND SHORT-TERM DEBT - continued

Facilities Agreement of 2019 - continued

The debt issuance cost of $12,600 for the Facilities Agreement of 2019 was amortized over the period from February 1, 2019 to January 31, 2022, and it was presented in the balance sheets as a direct deduction from the principal amount of the loan.

In October 2019, the Company drew down $270,000 three-year bullet maturity term loan under the facility commitment. On February 20, 2021, the Company issued voluntary repayment request to fully repay the outstanding bullet maturity term loan and interest payment on March 8, 2021. As a result, the term loan was reclassified from long-term debt to short-term loan as of February 28, 2021 and the remaining unamortized debt issuance cost was recorded as interest expense in the consolidated statements of operations for the year ended February 28, 2021. Concurrently, the Company issued commitment cancellation request to terminate revolving loan commitment of $330,000 effective on March 8, 2021.

Facilities Agreement of Zhenjiang

In December 2019, the Group signed a RMB1,800 million loan facilities agreement with a group of arrangers led by a PRC bank. The facilities have a term of eight years and an effective drawdown period of three years. The interest rate is prime minus 39 basis points where prime is based on Loan Prime Rate released by the National Inter-Bank Funding Center of the PRC. The interest is payable on a quarterly basis. The principal of the loan facilities is to be repaid on a proportional basis semiannually after the 3-year drawdown period. The use of proceeds of the facilities are for the construction of buildings in the city of Zhenjiang. The loan facilities are collateralized by a pledge of the construction project and the land use rights in Zhenjiang.

As of February 28, 2021, the Group had not made any draw down of the loan under the facilities agreement.

FAIR VALUE

12 Months Ended

Feb. 28, 2021

FAIR VALUE

FAIR VALUE

15. FAIR VALUE

(a) Assets and liabilities measured at fair value on a recurring basis

In accordance with ASC 820-10, the Group measures financial products, available-for-sale investments, fair value option investment and equity securities with readily determinable fair value at fair value on a recurring basis. Equity securities classified within Level 1 are valued using quoted market prices currently available on the Hong Kong Stock Exchange. Variable-rate financial instruments and available-for-sale investments classified within Level 2 are valued using directly or indirectly observable inputs in the market place. The available-for-sale investments and fair value option investment classified within Level 3 are valued using income approach in discounted cash flow method or market approach in backsolve method. The discounted cash flow analysis and backsolve method require the use of significant unobservable inputs (Level 3 inputs) which involve significant management judgment and estimation. In the valuation of Level 3 financial instruments as of February 28, 2021, the weighted average cost of capital adopted ranges from 18% to 24% with weighted average at 22%, the discount for lack of marketability adopted ranges from 15% to 30% with weighted average at 25%, and the expected volatilities adopted ranges from 46% to 71% with weighted average at 61%.

15. FAIR VALUE – continued

(a) Assets and liabilities measured at fair value on a recurring basis – continued

As of February 29, 2020 and February 28, 2021, information about inputs for the fair value measurements of the Group’s assets that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:


	Fair Value Measurement at Reporting Date Using
			Quoted Prices in		Significant Other		Significant
	February 29,		Active Market for		Observable		Unobservable
Description	2020		Identical Assets		Inputs		Inputs
				(Level 1)		(Level 2)		(Level 3)

Long-term investments
Equity securities with readily determinable fair values	$	26,696	$	26,696		—		—
Fair value option investment	$	7,258		—		—	$	7,258
Available-for-sale investments	$	303,584		—		—	$	303,584

Total	$	337,538	$	26,696		—	$	310,842


	Fair Value Measurement at Reporting Date Using
			Quoted Prices in		Significant Other		Significant
	February 28,		Active Market for		Observable		Unobservable
Description	2021		Identical Assets		Inputs		Inputs
				(Level 1)		(Level 2)		(Level 3)

Short-term investments
Variable-rate financial instruments	$	457,723		—	$	457,723		—
Available-for-sale investments	$	308,970		—	$	308,970		—
Long-term investments
Equity securities with readily determinable fair values	$	23,467	$	23,467		—		—
Fair value option investment	$	7,661		—		—	$	7,661
Available-for-sale investments	$	361,788		—		—	$	361,788

Total	$	1,159,609	$	23,467	$	766,693	$	369,449

15. FAIR VALUE - continued

(a) Assets and liabilities measured at fair value on a recurring basis-continued

The roll forward of Level 3 investments are as following:


	US$

Balance as of February 28, 2019	$	353,669

Purchase		95,269
Disposal		(1,512)
Changes in fair value		(45)
Impairment loss		(133,329)
Foreign exchange difference		(3,210)

Balance as of February 29, 2020	$	310,842
Purchase		20,349
Transfer in due to reclassification		22,579
Changes in fair value		19,145
Impairment loss		(10,029)
Foreign exchange difference		6,563

Balance as of February 28, 2021	$	369,449

(b) Assets and liabilities measured at fair value on a nonrecurring basis

The Group’s goodwill and intangible assets are primarily acquired through business acquisitions. Purchase price allocation are measured at fair value on a nonrecurring basis as of the acquisition dates. The Group measures its goodwill and intangible assets at fair value on a nonrecurring basis annually or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value. Acquired intangible assets are measured using the income approach - discounted cash flow method when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable.

The Group measures long-term investments (excluding the equity securities with readily determinable fair values, available-for-sale investments and fair value option investment) at fair value on a nonrecurring basis only if an impairment or observable price adjustment is recognized in the current period. Please see Note 10(2), Note 10(3) and Note 10(4).

For equity securities without readily determinable fair values, the fair value was determined using directly or indirectly observable inputs in the market place (Level 2 inputs). Whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable, the fair value of aforementioned long term investments was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection of discounted future cash flow and the discount rate.

- Definition

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

+ References + Details

LEASES

12 Months Ended

Feb. 28, 2021

LEASES

LEASES

16. LEASES

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

Operating lease cost for the year ended February 29, 2020 and February 28, 2021 were $338,593 and $431,976, respectively, which excluded cost of short-term contracts. Short-term lease cost for the year ended February 29, 2020 and February 28, 2021 were $1,184 and $1,319, respectively.

As of February 29, 2020 and February 28, 2021, the weighted average remaining lease term were 4.9 years and 4.9 years, respectively, and weighted average discount rate were 4.8% and 4.8% for the Group’s operating leases, respectively.

Supplemental cash flow information of the leases were as follows:


	For the year ended,		For the year ended,
	February 29,		February 28,
	2020		2021
Cash payments for operating leases	$	314,099	$	419,926
Right-of-use assets obtained in exchange for operating lease liabilities		770,942		929,787

The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of February 28, 2021:


	As of February 28,
Fiscal year ending	2021

February 2022	$	419,504
February 2023		417,734
February 2024		351,370
February 2025		269,895
February 2026		192,374
Thereafter		235,810

Total future lease payments	$	1,886,687
Less: Imputed interest		(310,452)

Present value of operating lease liabilities	$	1,576,235

As of February 28, 2021, the Group has lease contract that has been entered into but not yet commenced amounted to $38,793, and these contracts will commence during fiscal year 2022.

INCOME TAXES

12 Months Ended

Feb. 28, 2021

INCOME TAXES

INCOME TAXES

17. INCOME TAXES

Cayman Islands

The Company and Firstleap are tax-exempted companies incorporated in the Cayman Islands.

Hong Kong

TAL Hong Kong and Firstleap Hong Kong were established in Hong Kong and have been subject to a two-tiered income tax rate for taxable income earned in Hong Kong effectively since April 1, 2018. The first 2 million Hong Kong dollars of profits earned by a company are subject to be taxed at an income tax rate of 8.25%, while the remaining profits will continue to be taxed at the existing tax rate of 16.5%. No provision for Hong Kong profits tax has been made in the consolidated financial statements as it has no assessable income for the years ended February 28, 2019, February 29, 2020 and February 28, 2021.

PRC

Effective from January 1, 2008, a new Enterprise Income Tax Law, or (“the New EIT Law”), combined the previous income tax laws for foreign invested and domestic invested enterprises in the PRC by the adoption of a unified tax rate of 25% for most enterprises with the following exceptions.

TAL Beijing was qualified as a High and New Technology Enterprises (“HNTE”) and was accordingly entitled to a preferential tax rate of 15% from calendar years 2014 through 2022 and is expected to be subject to an EIT rate of 15% as long as it maintains its status as an HNTE. TAL Beijing applied for Key Software Enterprise status for calendar year 2018 and 2019 and was approved which entitled TAL Beijing to enjoy the preferential tax rate of 10%. For calendar year 2020, TAL Beijing applied for the qualification of Key Software Enterprise to enjoy the preferential tax rate of 10%, which is still subject to the review by the government authorities. Accordingly, TAL Beijing applied 15% for fiscal year 2021 as an HNTE.

17. INCOME TAXES - continued

PRC - continued

Yidu Huida was qualified as an HNTE and was accordingly entitled to a preferential tax rate of 15% from calendar years 2015 through 2020 and is expected to be subject to an EIT rate of 15% as long as it maintains its status as an HNTE. Yidu Huida applied for Key Software Enterprise status for calendar year 2016, 2017, 2018 and 2019 and was approved respectively, which entitled Yidu Huida to enjoy the preferential tax rate of 10%. For calendar year 2020, Yidu Huida applied for Key Software Enterprise status to qualify for preferential tax rate of 10%, which is still subject to the review by the government authorities. Accordingly, Yidu Huida applied 10% for calendar year 2016 to 2019 under the qualification of Key Software Enterprise and 15% for fiscal year 2021 as an HNTE.

Beijing Xintang Sichuang applied and was qualified as an HNTE where EIT rate of 15% would be applied for calendar years 2018 through 2022. Beijing Xintang Sichuang later applied and was qualified for Key Software Enterprise status for calendar year 2018 and 2019 and entitled to enjoy the preferential tax rate of 10%. For calendar year 2020, Xintang Sichuang applied for Key Software Enterprise which is still subject to the review by the government authorities. Accordingly, Beijing Xintang Sichuang applied 15% for fiscal year 2021 as an HNTE.

Beijing Yinghe Youshi Technology Co., Ltd. (“Yinghe Youshi”) was also qualified as an HNTE and was accordingly entitled to a preferential tax rate of 15% from calendar years 2016 through 2021. It is expected to be subject to an EIT rate of 15% as long as it maintains its status as an HNTE.

Yizhen Xuesi was qualified as “Newly Established Software Enterprise” in calendar year 2017 and therefore it was entitled to a two-year exemption from EIT and a further reduction of tax rate to 12.5% from calendar years 2019 through 2021.

Beijing Lebai Information Consulting Co., Ltd. (“Lebai Information”) was qualified as “Newly Established Software Enterprise” in calendar year 2018 and therefore it was entitled to a two-year exemption from EIT and a further reduction of tax rate to 12.5% from calendar years 2020 through 2022.

Provision (benefits) for income tax consisted of the following:


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Current
- PRC income tax expenses	$	94,722	$	127,731	$	161,488
Deferred
- PRC income tax expenses		(18,218)		(58,403)		(231,385)

Total	$	76,504	$	69,328	$	(69,897)

17. INCOME TAXES – continued

PRC - continued

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


	As of		As of
	February 29,		February 28,
	2020		2021
Deferred tax assets:
Advertising expense and prepaid rental		50,187		229,735
Property and equipment		2,576		6,923
Impairment loss on long-term investments		4,559		19,870
Others		19,526		61,482
Tax losses carry-forward		84,007		185,700
Less: valuation allowance		(81,321)		(186,521)

Deferred tax assets, net	$	79,534	$	317,189

Deferred tax liabilities:
Intangible assets		6,984		10,207
Property and equipment		805		126

Deferred tax liabilities	$	7,789	$	10,333

As of February 28, 2021, the Group had operating loss carry-forward of $752,251 from entities in PRC to offset the future tax profit for five years, and the period was extended to ten years for entities qualified as HNTE in calendar year 2020 and thereafter. The Company operates its business through its subsidiaries, its VIEs and VIEs’ subsidiaries and schools. The Group does not file combined or consolidated tax returns, therefore, losses from individual subsidiaries or the VIEs and their subsidiaries and schools may not be used to offset other subsidiaries’ or VIEs’ earnings within the Group. Valuation allowance is considered on each individual subsidiary and VIE basis. Valuation allowance of $81,321 and $186,521 had been established as of February 29, 2020 and February 28, 2021, respectively, in respect of certain deferred tax assets as it is considered more likely than not that the relevant deferred tax assets will not be realized in the foreseeable future.

Under U.S. GAAP, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting amounts over tax basis amounts, including those differences attributable to a more than 50% interest in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Company has not recorded any such deferred tax liability attributable to the undistributed earnings of its financial interest in VIEs because it believes such excess earnings can be distributed in a manner that would not be subject to income tax.

17. INCOME TAXES – continued

PRC - continued

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group has concluded that there are no significant uncertain tax positions requiring recognition in financial statements for the years ended February 28, 2019, February 29, 2020 and February 28, 2021. The Group did not incur any significant interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months. The Group has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future years.

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

Reconciliation between the provision for income taxes computed by applying the PRC EIT rates of 25% in fiscal year 2019, 2020 and 2021 to income before provision for income tax and the actual provision for income tax was as follows:


	For the year ended			For the year ended			For the year ended
	February 28,			February 29,			February 28,
	2019			2020			2021

Income/(loss) before provision for income tax	$	457,204		$	(50,653)		$	(224,623)
PRC statutory income tax rate		25	%		25	%		25	%

Income tax at statutory income tax rate		114,301			(12,663)			(56,156)
Effect of non-deductible expenses and loss and super deduction expenses		(6,252)			(18,117)			2,466
Effect of income tax exemptions and preferential tax rates		(45,625)			(36,750)			(98,368)
Effect of income tax rate difference in other jurisdictions		5,214			97,058			60,806
Change in valuation allowance		8,866			39,800			21,355

Income tax expense / (benefit)	$	76,504		$	69,328		$	(69,897)

17. INCOME TAXES – continued

PRC - continued

If Yidu Huida, TAL Beijing, Beijing Xintang Sichuang, Yinghe Youshi, Lebai Information and Yizhen Xuesi did not enjoy income tax exemptions and preferential tax rates for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, the increase in income tax expenses and net income/(loss) per share amounts would be as follows:


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Increase in income tax expenses	$	45,625	$	36,750	$	98,368
Net income / (loss) per common share-basic	$	1.69	$	(0.74)	$	(1.05)
Net income / (loss) per common share-diluted	$	1.61	$	(0.74)	$	(1.05)

New EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese Income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the New EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc., occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for PRC EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed a resident enterprise, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income tax at a rate of 25% with the statute which is subject to the determination by PRC tax authorities.

If the Company were to be non-resident for PRC tax purpose, dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax. In the case of dividends paid by PRC subsidiaries, the withholding tax would be 10%.

The Chinese tax authorities clarified that distributions made out of earnings prior to but distributed after January 1, 2008 will not be subject to withholding tax. The aggregate undistributed earnings of the Company’s subsidiaries, VIEs and VIEs’ subsidiaries and schools located in the PRC that are available for distribution are $1,807,724 and $2,583,994 as of February 29, 2020 and February 28, 2021, respectively. Upon distribution of such earnings, the Company will be subject to PRC taxes, the amount of which is impractical to estimate. The Company did not record any withholding tax on any of the aforementioned undistributed earnings because it intends to permanently reinvest all earnings in China and the aforementioned subsidiaries do not intend to declare dividends to the Company.

- Definition

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

+ References + Details

COMMON SHARES

12 Months Ended

Feb. 28, 2021

COMMON SHARES

COMMON SHARES

18. COMMON SHARES

The Company has two classes of common shares, namely, Class A and Class B common shares, following the issuance of Class A common shares upon the IPO in October 2010.

Holders of Class A common shares and Class B common shares have the same rights except for voting and conversion rights. In respect of matters requiring shareholders’ vote, each Class A common share is entitled to one vote, and each Class B common share is entitled to ten votes. Each Class B common share is convertible into one Class A common share at any time by the holder thereof. Class A common shares are not convertible into Class B common shares under any circumstances.

During the years ended February 28, 2019, February 29, 2020 and February 28, 2021, nil, 3,614,796 and 2,000 Class B common shares were converted into nil, 3,614,796 and 2,000 Class A common shares, respectively.

During the years ended February 28, 2019, February 29, 2020 and February 28, 2021, 2,073,711, 2,239,239 and 2,240,585 Class A common shares were issued in connection with vested shares, representing 6,221,133, 6,717,717 and 6,721,755 ADSs, respectively.

During the years ended February 28, 2019, February 29, 2020 and February 28, 2021, 232,024, 114,793 and 359,178 Class A common shares were issued upon exercise of share options, representing 696,072, 344,379 and 1,077,534 ADSs, respectively.

During the years ended February 28, 2019, February 29, 2020 and February 28, 2021, 20,502, 24,702 and nil Class A common shares were issued as consideration for the business acquisitions, respectively.

On April 28, 2020, the Company authorized the repurchase of up to $500 million of Class A common shares over the following 12 months. During the year ended February 28, 2021, the Company repurchased 61,667 Class A common shares at an aggregate consideration of US$9,852. Such common shares were cancelled upon the completion of the transaction.

During the years ended February 28, 2019, February 29, 2020 and February 28, 2021, 443,091, 401,074 and nil Class A common shares issued to bond holders were converted into 1,329,273, 1,203,222 and nil ADSs, respectively.

On February 18, 2019, the Company entered into a subscription agreement with a long-term equity investment firm, pursuant to which the Company issued 5,329,922 Class A common shares to the investment firm in a private placement for aggregate proceeds of $500,000 which was received on February 25, 2019. On November 12, 2020, the Company entered into a subscription agreement with a global growth investment firm, pursuant to which the Company issued 7,575,756 Class A common shares to the investment firm in a private placement for aggregate proceeds of $1,500,000 which was received on November 20, 2020.On December 28, 2020, the Company entered into a subscription agreement with a group of investors, pursuant to which the Company issued 4,984,051 Class A common shares to the investors in a private placement for aggregate proceeds of $1,000,000 which were received by January 22, 2021.

NET INCOME / (LOSS) PER SHARE

12 Months Ended

Feb. 28, 2021

NET INCOME / (LOSS) PER SHARE

NET INCOME / (LOSS) PER SHARE

19. NET INCOME / (LOSS) PER SHARE


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Numerator:
Net income/(loss) attributable to TAL Education Group’s shareholders	$	367,236	$	(110,195)	$	(115,990)
Eliminate the dilutive effect of interest expense of the bond payable (i)		162		—		—

Numerator used for calculation of diluted net income/(loss) per share	$	367,398	$	(110,195)	$	(115,990)

Denominator:
Weighted average shares outstanding
Basic		189,951,643		198,184,370		203,603,391
Effect of dilutive securities:
Dilutive effect of non-vested shares and options (ii)		9,689,955		—		—
Dilutive effect of the bond payable (i)		583,336		—		—
Denominator for diluted net income/(loss) per share		200,224,934		198,184,370		203,603,391

Net income/(loss) per common share attributable to TAL Education Group’s shareholders-basic (iii)	$	1.93	$	(0.56)	$	(0.57)
Net income/(loss) per common share attributable to TAL Education Group’s shareholders-diluted	$	1.83	$	(0.56)	$	(0.57)

(i)

The effect of convertible bond, including interest expense and potential converted shares, were excluded from the computation of diluted net loss per share for the years ended February 29, 2020 and February 28, 2021, as its effect would be anti-dilutive.

(ii)

For the years ended February 28, 2019, 2,559,254 non-vested shares and share options were excluded from the calculation, as their effect was anti-dilutive. For the year ended February 29, 2020 and February 28, 2021, 11,319,817 and 9,479,522 potential shares outstanding due to non-vested shares and share options were excluded from the calculation due to their anti-dilutive effect resulted from net loss reported in fiscal year 2020 and fiscal year 2021, respectively.

(iii)

The Company’s common shares are divided into Class A and Class B common shares. Holders of Class A and Class B common shares have the same dividend rights. Therefore, the Company does not present earnings per share for each separate class.

RELATED PARTY TRANSACTIONS

12 Months Ended

Feb. 28, 2021

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

20. RELATED PARTY TRANSACTIONS

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

Balances:


	As of		As of
	February 29,		February 28,
	2020		2021

Amounts due from related parties-current ⁽ⁱ⁾	$	3,642	$	2,964
Amounts due to related parties-current ⁽ⁱⁱ⁾	$	4,361	$	3,488

Transactions:


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Services fees	$	1,888	$	6,350	$	3,745
Other revenue	$	1,374	$	4,113	$	1,680
Purchase of equipment	$	1,068	$	120	$	804
Disposal gain ⁽ⁱⁱⁱ⁾	$	760	$	—		—

(i)

The amounts due from related parties represent loans and prepayments to certain investees for service fees.

In fiscal year 2020 and fiscal year 2021, the Group recorded $33,184 and $16,087 impairment loss on the amounts due from related parties, substantially all of which were provided during the year ended February 29, 2020 and the year ended February 28, 2021, respectively.

(ii)

The amounts due to related parties primarily related to service fees payable to related parties.

(iii)

As disclosed in Note 10(1), in fiscal year 2019, the Group disposed certain equity interests in BabyTree to a related party and recognized disposal gains of $760.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Feb. 28, 2021

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

21. COMMITMENTS AND CONTINGENCIES

Capital commitment

The Group had outstanding capital commitments mainly relating to capital expenditures of office space construction in Beijing and Jiangsu. As of February 28, 2021, the payment due within one year was $306,691 and $196,108 thereafter.

Lease property management fee commitment

Future minimum payments under non-cancelable agreements for property management fees as of February 28, 2021 were as follows:


Fiscal year ending
February 2022	$	30,372
February 2023		30,541
February 2024		24,966
February 2025		18,301
February 2026		11,893
Thereafter		18,664

Total	$	134,737

Investment commitment

The Group was obligated to pay $12,895 for several long-term investments under various arrangements as of February 28, 2021 with payment due within two years.

Contingencies

As of February 28, 2021, the Group remains in the process of preparing filings and applying for permits of certain learning centers. The Group cannot reasonably estimate the contingent liability of without the filling of the permit; no liabilities is recorded as of February 28, 2021.

During June and July 2018, two putative shareholder class action lawsuits were filed against the Company and certain officers of the Company in the U.S. District Court for the Southern District of New York (“the Court”). These class actions seek to recover damages caused by the Company’s violations of the federal securities laws and pursue remedies under the Securities Exchange Act of 1934 and Rule 10b-5. In September 2018, the Court consolidated the two lawsuits as one case. In November 2020, the Second Circuit reversed and remanded the case to the District Court for further proceedings. On April 26, 2021, the Company and the plaintiffs submitted a joint letter to the Court stating that the parties reached an agreement in principle to settle all claims, subject to, among other items, definitive documentation and the Court’s approval.

The SEC’s Division of Enforcement has requested the Company to provide information relating to certain transactions discussed in a report issued by Muddy Waters Capital LLC in 2018, the Company’s internal review status report, as well as information regarding issues related to the “Light Class” business as Company announced in April 2020.

Based on the current progress and information available, the Company does not believe it has sound basis to develop possible outcome of the class action lawsuits and the SEC’s inquiries as well as the contingent losses it may incur. Therefore, no accrual for contingency loss was recognized in the consolidated statements of operations.

From time to time, the Group may be subject to other legal proceedings and claims incidental to the conduct of its business. The Group accrues the liability when the loss is probable and reasonably estimable.

SEGMENT INFORMATION

12 Months Ended

Feb. 28, 2021

SEGMENT INFORMATION

SEGMENT INFORMATION

22. SEGMENT INFORMATION

The Group is mainly engaged in after-school tutoring in the PRC. The Group’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer. The CODM currently regularly reviews the consolidated financial results of the Group. Therefore, the Group has one single operating and reportable segment. Substantially all of the Group’s long-lived assets are located in the PRC and substantially all of the Group’s revenues are derived from PRC.

- Definition

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

+ References

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

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

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

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 32
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (e)
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-Publisher FASB
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-Section 50
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 21
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

MAINLAND CHINA CONTRIBUTION PLAN

12 Months Ended

Feb. 28, 2021

MAINLAND CHINA CONTRIBUTION PLAN

MAINLAND CHINA CONTRIBUTION PLAN

23. MAINLAND CHINA CONTRIBUTION PLAN

Full time employees of the Group in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The PRC labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. Total provisions for such employee benefits were $173,050, $220,366 and $289,416 for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

STATUTORY RESERVES AND RESTRICTED NET ASSETS

12 Months Ended

Feb. 28, 2021

STATUTORY RESERVES AND RESTRICTED NET ASSETS

STATUTORY RESERVES AND RESTRICTED NET ASSETS

24. STATUTORY RESERVES AND RESTRICTED NET ASSETS

As stipulated by the relevant PRC laws and regulations, PRC entities are required to make appropriations from net income as determined in accordance with the PRC GAAP to non-distributable statutory reserve, which includes a statutory surplus reserve and a statutory welfare reserve (the “reserve fund”), and a development fund. The PRC laws and regulations require that annual appropriations of 10% of after-tax income should be set aside prior to payments of dividends as statutory surplus reserve until the balance reaches 50% of the PRC entity registered capital.

In private school sector, the PRC laws and regulations require that certain amount should be set aside as development fund prior to payments of dividends. In the case of private school that requires reasonable returns, this amount should be no less than 25% of the annual net income of the school, while in the case of a private school that does not require reasonable returns, this amount should be no less than 25% of annual increase in the net assets of the school, if any.

The statutory reserve may be applied against prior year losses, if any, and may be used for general business expansion and production or increase in registered capital of the entities. For the years ended February 29, 2020 and February 28, 2021, the Group made apportions of $2,709 and $1,721 to the statutory surplus reserve, respectively, and $21,313 and $36,852 to the development fund, respectively.

As a result of these PRC laws and regulations and the requirement that distribution by PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid-in capital and the statutory reserve of the Company’s PRC subsidiaries, the VIEs and VIEs’ subsidiaries and schools. As of February 29, 2020 and February 28, 2021, paid-in capital balance of such entities was $580,551 and $669,242, respectively, and statutory reserve balance was $82,712 and $121,285, respectively. The total of restricted net assets as of February 29, 2020 and February 28, 2021 was therefore $663,263 and $790,527, respectively.

SHARE-BASED COMPENSATION

12 Months Ended

Feb. 28, 2021

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

25. SHARE-BASED COMPENSATION

In June 2010, the Company adopted the 2010 Share Incentive Plan. The plan permits the grant of options to purchase the Class A common shares, share appreciation rights, restricted shares, restricted share units, dividend equivalent rights and other instruments as deemed appropriate by the administrator under the plans. In August 2013, the Company amended and restated the 2010 Share Incentive Plan (the “Amendment”). Pursuant to the Amendment, the maximum aggregate number of Class A common shares that may be issued pursuant to all awards under the share incentive plan is equal to five percent (5%) of the total issued and outstanding shares as of the date of the Amendment. However, the shares reserved may be increased automatically if and whenever the unissued share reserve accounts for less than one percent (1%) of the total then issued and outstanding shares, so that after the increase, the shares unissued and reserved under this plan immediately after each such increase shall equal five percent (5%) of the then issued and outstanding shares.

In June, 2020, the Company adopted the 2020 Share Incentive Plan. The 2020 Plan permits the grant of options to purchase Class A common shares, restricted shares, restricted share units and other instruments as deemed appropriate by the administrator under the plan. Pursuant to the 2020 Plan, the maximum aggregate number of shares that may be issued pursuant to all awards (including incentive share options) (the “Award Pool”) is initially five percent (5)% of the total issued and outstanding shares as of the effective date of the 2020 Plan, provided that (A) the Award Pool shall be increased automatically if and whenever the number of shares that may be issued pursuant to ungranted awards under the 2020 Plan (the “Ungranted Portion”) accounts for less than one percent (1)% of the then total issued and outstanding shares of the Company, so that for each automatic increase, the Ungranted Portion immediately after such increase shall equal five percent (5)% of the then total issued and outstanding shares of the Company, and (B) the size of the Award Pool shall be equitably adjusted in the event of any share dividend, subdivision, reclassification, recapitalization, split, reverse split, combination, consolidation or similar transactions.

The Company’s 2010 Share Incentive Plan has ceased to be used for grants of future awards upon the effectiveness of the 2020 Plan.

Non-vested shares – service condition

During the year ended February 28, 2019, the Company granted 2,801,437 service-based non-vested shares to employees and directors which generally vest annually in equal batches over a period of 1 to 13 years.

During the year ended February 29, 2020, the Company granted 1,376,628 service-based non-vested shares to employees and directors which generally vest annual in equal batches over a period of 1 to 8 years.

During the year ended February 28, 2021, the Company granted 1,737,898 service-based non-vested shares to employees and directors which generally vest annual in equal batches over a period of 1 to 6 years.

25. SHARE-BASED COMPENSATION – continued

Non-vested shares – service condition - continued

The activities of non-vested shares granted with service condition were summarized as follows:


	Service Condition
	Number of	Weighted
	non-vested	average grant date
	shares	fair value

Outstanding as of February 29, 2020	10,272,692	47.73

Granted	1,737,898	210.77
Forfeited	1,361,601	56.77
Vested	2,264,663	49.16

Outstanding as of February 28, 2021	8,384,326	79.67

The Company recorded compensation expense of $74,231, $114,027 and $146,410 for the years ended February 28, 2019, February 29, 2020 and February 28, 2021 related to service-based non-vested shares, respectively.

As of February 28, 2021, the unrecognized compensation expense related to the service-based non-vested share awards amounted to $552,612, which is expected to be recognized over a weighted-average period of 4.0 years. The total fair value of service-based non-vested shares that vested during the years ended February 28, 2019, February 29, 2020 and February 28, 2021 was $41,527, $77,012 and $111,331, respectively.

25. SHARE-BASED COMPENSATION - continued

Non-vested shares – performance condition

During the year ended February 28, 2021, the Company granted 602,203 performance-based non-vested shares to employees which generally vest annual in equal batches over a period of 1 to 6 years. The vesting of awards is subject to the satisfaction of both a service and performance condition based on individual performance evaluations.

The activities of non-vested shares granted with performance condition were summarized as follows:


	Performance Condition
	Number of	Weighted
	non-vested	average grant date
	shares	fair value

Outstanding as of February 29, 2020	—

Granted	602,203	220.49
Forfeited	45,590	215.85

Outstanding as of February 28, 2021	556,613	220.87

The Company recorded compensation expense of $54,556 for the years ended February 28, 2021 related to performance-based non-vested shares.

As of February 28, 2021, the unrecognized compensation expense related to the performance-based non-vested share awards amounted to $93,123, which is expected to be recognized over a weighted-average period of 3.4 years.

Share options

Share options granted to employees and directors expire ranging from 8 to 12 years from the date of grant.

During the year ended February 28, 2019, the Company granted 23,000 share options to employees at exercise prices ranging from $107.67 to $109.98. These share options vest annually in equal batches over a period from 3 to 4 years.

During the year ended February 29, 2020, the Company granted 203,179 share options to employees at exercise prices ranging from $63.00 to $115.80. These share options vest annually in equal batches over a period from 3 to 4 years.

During the year ended February 28, 2021, the Company granted 82,003 share options to employees at exercise prices ranging from $208.41 to $239.01. These share options vest annually in equal batches over a period from 4 to 6 years.

The fair value of each option granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used for grants during the applicable periods:


	For the year ended		For the year ended		For the year ended
	February 28, 2019		February 29, 2020		February 28, 2021
Risk-free interest rate⁽¹⁾	2.89%-2.92	%	1.63%-2.35	%	0.31%-0.51	%
Expected life (years)⁽²⁾	6.00-6.25		6.00-6.25		6.25-7.43
Expected dividend yield⁽³⁾	0	%	0	%	0	%
Volatility⁽⁴⁾	34.0%-34.5	%	34.2%-35.1	%	35.8%-35.9	%
Fair value of options at grant date per share	$42.09 to $42.55		$43.53 to $72.09		$65.55 to $90.06

25. SHARE-BASED COMPENSATION - continued

Share options-continued

(1)

Risk-free interest rate

Risk-free interest rate for periods within the contractual life of the option is based upon the U.S. treasury yield curve in effect at the time of grant.

(2)

Expected life (years)

Assumption of the expected term were based on the vesting and contractual terms and employee demographics.

(3)

Expected dividend yield

The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options.

(4)

Volatility

The volatility assumption was estimated based on historical volatility of the Company’s share price applying the guidance provided by ASC 718. The Company begins to estimate the volatility assumption solely based on its historical information since October 2010.

The activities of share options for the years ended February 28, 2021 were as follows:


		Weighted	Weighted	Aggregate
		average	average remaining	intrinsic
	Number	exercise price	contractual	value
Share options	of shares	(US$)	life (Years)	(US$)

Outstanding as of February 29, 2020	1,047,125	35.03	7.25	134,183

Granted	82,003	222.56
Exercised	359,178	23.42
Forfeited	231,367	43.72

Outstanding as of February 28, 2021	538,583	67.58	6.96	88,975

Vested and expected to vest as of February 28, 2021	538,583	67.58	6.96	88,975
Exercisable as of February 28, 2021	224,969	33.61	6.06	44,771

The Company recorded compensation expense of $3,046, $3,916 and $3,979 for the years ended February 28, 2019, February 29, 2020 and February 28, 2021 related to share options, respectively.

Total intrinsic value of options exercised for the years ended February 28, 2019, February 29, 2020 and February 28, 2021 was $19,863, $12,139 and $74,154, respectively. The total fair value of options vested during the years ended February 28, 2019, February 29, 2020 and February 28, 2021 was $2,764, $3,225 and $4,315, respectively.

As of February 28, 2021, there was $11,530 unrecognized share-based compensation expense related to share options, which is expected to be recognized over a weighted-average vesting period of 3.9 years.

25. SHARE-BASED COMPENSATION - continued

The total compensation expense is recognized on a straight-line basis over the respective vesting periods. The Group recorded the related compensation expense of $77,277, $117,943 and $204,945 for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively.

Table below shows the summary of share-based compensation expense:


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Cost of revenues	$	706	$	1,074	$	1,803
Selling and marketing expenses		10,454		19,356		56,609
General and administrative expenses		66,117		97,513		146,533

Total	$	77,277	$	117,943	$	204,945

SUBSEQUENT EVENT

12 Months Ended

Feb. 28, 2021

SUBSEQUENT EVENT

SUBSEQUENT EVENT

26. SUBSEQUENT EVENT

On April 19, 2021, the Company’s board of directors authorized a share repurchase plan under which the Company may repurchase up to US$1,000 million of the Company’s common shares over the next 12 months, subject to the applicable rules under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Up to date of this report no shares were repurchased under this plan.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Feb. 28, 2021

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 (“U.S. GAAP”).

Basis of consolidation

Consolidation of Variable Interest Entities

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Consolidation of Variable Interest Entities - continued

Please see Note 1 for the presentation of condensed financial information of the VIEs and VIEs’ subsidiaries and schools, after elimination of intercompany balances and transactions.

Use of estimates

Cash and cash equivalents

Restricted cash

Short-term investments

Derivative Instruments

2. SIGNIFICANT ACCOUNTING POLICIES – continued

Derivative Instruments – continued

As of February 28, 2021, and for the year ended February 28, 2021, the balance of the derivative instruments and the total amount of fair value changes are not material.

Property and equipment, net


Building		35-64 years
Computer, network equipment and software		3 years
Vehicles		4-5 years
Office equipment and furniture		3-5 years
Leasehold improvement		Shorter of the lease term or estimated useful lives

Business combinations

2. SIGNIFICANT ACCOUNTING POLICIES – continued

Business combinations - continued

Acquired intangible assets, net


Trade name and domain names		1-10 years
Copyrights and teaching materials		3-10 years
User base and customer relationships		3-7 years
Technology		4-6 years
Partnership agreements and school cooperation agreements		4-6 years
Licenses		2-9 years
Others		1-7 years

Land use rights, net

Impairment of long-lived assets

Goodwill

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Goodwill - continued

The Group recognized impairment loss on goodwill of nil, $28,998 and $107,399 for the years ended February 28, 2019, February 29, 2020 and February 28, 2021, respectively.

Long-term investments

Equity securities without readily determinable fair values

Equity securities with readily determinable fair values

Equity securities with readily determinable fair value are measured at fair values, and any changes in fair value are recognized in the consolidated statements of operations.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Long-term investments-continued

Equity method investments

Available-for-sale investments

Fair value option investments

The Group elected the fair value option to account for certain investment whereby the change in fair value is recognized in the consolidated statements of operations.

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Long-term investments - continued

Held-to-maturity investments

Fair value

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

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

Fair value of financial instruments is disclosed in Note 15.

Revenue recognition

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue recognition

On March 1, 2018, the Group adopted Revenue from Contracts with Customers (“Topic 606”), applying the modified retrospective method to all contracts that were not completed as of March 1, 2018.


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021
Disaggregation of net revenues
-Small class tutoring services, personalized premium services and others	$	2,223,347	$	2,655,323	$	3,221,161
-Online education services through www.xueersi.com		339,637		617,985		1,274,594

Total	$	2,562,984	$	3,273,308	$	4,495,755

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

(a) Small class tutoring services, personalized premium services and others

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue recognition - continued

(b) Online education services through www.xueersi.com

The Group provides online education services, including live class and pre-recorded course content, to its students through www.xueersi.com.

Share-based compensation

Value added tax

Value added tax (“VAT”)

Pursuant to Cai Shui [2018] No. 53 in June 2018 and Cai Shui [2021] No. 10 in March 2021, Xueersi Education enjoyed VAT exemption from 2018 to 2023 for its book sales.

2. SIGNIFICANT ACCOUNTING POLICIES – continued

Value added tax (“VAT”) – continued

Since January 2020, in accordance with Cai Shui [2020] No.8, due to the COVID-19 pandemic, the VAT on certain services was temporarily exempted from January 2020 to March 2021.

Operating leases

Advertising costs

Government subsidies

Foreign currency translation

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Foreign currency translation - continued

Foreign currency risk

Income taxes

Comprehensive income / (loss)

Concentration of credit risk

Financial instruments

Net income / (loss) per share

Recent accounting pronouncements adopted

Recent accounting pronouncements not yet adopted

2. SIGNIFICANT ACCOUNTING POLICIES - continued

Recent accounting pronouncements not yet adopted - continued

ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables)

12 Months Ended

Feb. 28, 2021

ORGANIZATION AND PRINCIPAL ACTIVITIES

Schedule Of Major Subsidiaries And Consolidated Variable Interest Entities And Schools

Name	Later of date of incorporation or acquisition	Place of incorporation (or establishment) /operation	Percentage of legal ownership	Principal activities	Nature of company

TAL Holding Limited (“TAL Hong Kong”)	March 11, 2008	Hong Kong	100%	Intermediate holding company	Subsidiary
Beijing Century TAL Education Technology Co., Ltd. (“TAL Beijing”)	May 8, 2008	Beijing	100%	Software sales, and consulting service	Subsidiary
Beijing Huanqiu Zhikang Shidai Education Consulting Co., Ltd. (“Huanqiu Zhikang”)	September 17, 2009	Beijing	100%	Education and management consulting service	Subsidiary
Yidu Huida Education Technology (Beijing) Co., Ltd. (“Yidu Huida”)	November 11, 2009	Beijing	100%	Software sales and consulting service	Subsidiary
Beijing Xintang Sichuang Education Technology Co., Ltd. (“Beijing Xintang Sichuang”)	August 27, 2012	Beijing	100%	Software and Network development, sales, and consulting service	Subsidiary
Zhixuesi Education Consulting (Beijing) Co., Ltd. (“Zhixuesi Beijing”)	October 23, 2012	Beijing	100%	Software and Network development, sales, and consulting service	Subsidiary
Pengxin TAL Industrial investment (Shanghai) Co., Ltd. (“Pengxin TAL”)	June 26, 2014	Shanghai	100%	Investment management and consulting services	Subsidiary
Firstleap Education (“Firstleap”)	January 22, 2016	Cayman Islands	100%	Intermediate holding company	Subsidiary

Name	Later of date of incorporation or acquisition	Place of incorporation (or establishment) /operation	Percentage of legal ownership	Principal activities	Nature of company
Firstleap Education (HK) Limited (“Firstleap Hong Kong”)	January 22, 2016	Hong Kong	100%	Intermediate holding company	Subsidiary
Beijing Lebai Information Consulting Co., Ltd. (“Lebai Information”)	January 22, 2016	Beijing	100%	Education and management consulting service	Subsidiary
Beijing Yizhen Xuesi Education Technology Co., Ltd. (“Yizhen Xuesi”)	November 3, 2016	Beijing	100%	Software and Network development,sales and consulting service	Subsidiary
Beijing Xueersi Education Technology Co., Ltd. (“Xueersi Education”)	December 31, 2005	Beijing	N/A*	Sales of educational materials and products	VIE
Beijing Xueersi Network Technology Co., Ltd. (“Xueersi Network”)	August 23, 2007	Beijing	N/A*	Technology development and Educational consulting service	VIE
Xinxin Xiangrong Education Technology (Beijing) Co., Ltd. (“Xinxin Xiangrong”)	June 23, 2015	Beijing	N/A*	Technology development and Educational consulting service	VIE
Beijing Lebai Education Consulting Co., Ltd. (“Lebai Education”)	January 22, 2016	Beijing	N/A*	Educational consulting service	VIE
Beijing Xicheng District Xueersi Training School (“Beijing Xicheng School” )	April 2, 2009	Beijing	N/A*	After-school tutoring for primary and secondary school students	VIE’s subsidiaries and schools
Shanghai Xueersi Education Training Co., Ltd. (“Shanghai Education”)	July 2, 2009	Shanghai	N/A*	After-school tutoring for primary and secondary school students	VIE’s subsidiaries and schools
Shenzhen Xueersi Training Center (“Shenzhen School”)	November 12, 2013	Shenzhen	N/A*	After-school tutoring for primary and secondary school students	VIE’s subsidiaries and schools
TAL Training School (Shanghai) Co., Ltd. (“TAL Shanghai”)	February 20, 2019	Shanghai	N/A*	After-school tutoring for primary and secondary school students	VIE’s subsidiaries and schools

Schedule of Variable Interest Entities


	As of February 29,		As of February 28,
	2020		2021

Cash and cash equivalents	$	350,035	$	820,301
Other current assets		159,706		324,568

Total current assets		509,741		1,144,869

Property and equipment, net		286,982		430,137
Other non-current assets		2,038,941		2,555,459

Total assets		2,835,664		4,130,465

Deferred revenue-current		733,253		1,328,473
Other current liabilities		898,959		1,488,763

Total current liabilities		1,632,212		2,817,236

Total non-current liabilities		891,633		1,163,622

Total liabilities	$	2,523,845	$	3,980,858


	For the year ended		For the year ended		For the year ended
	February 28		February 29,		February 28,
	2019		2020		2021

Net revenues	$	2,406,642	$	3,058,285	$	4,244,907
Net income	$	606,560	$	534,070	$	488,866


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Net cash provided by operating activities	$	409,103	$	215,892	$	727,661
Net cash used in investing activities	$	(346,183)	$	(134,936)	$	(224,235)
Net cash used in financing activities	$	(4,392)	$	(5,173)	$	(3,518)

- 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

Feb. 28, 2021

SIGNIFICANT ACCOUNTING POLICIES

Property, Plant and Equipment


Building		35-64 years
Computer, network equipment and software		3 years
Vehicles		4-5 years
Office equipment and furniture		3-5 years
Leasehold improvement		Shorter of the lease term or estimated useful lives

Schedule of Acquired Finite-Lived Intangible Assets by Major Class


Trade name and domain names		1-10 years
Copyrights and teaching materials		3-10 years
User base and customer relationships		3-7 years
Technology		4-6 years
Partnership agreements and school cooperation agreements		4-6 years
Licenses		2-9 years
Others		1-7 years

Disaggregation of Revenue


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021
Disaggregation of net revenues
-Small class tutoring services, personalized premium services and others	$	2,223,347	$	2,655,323	$	3,221,161
-Online education services through www.xueersi.com		339,637		617,985		1,274,594

Total	$	2,562,984	$	3,273,308	$	4,495,755

BUSINESS ACQUISITION (Tables)

12 Months Ended

Feb. 28, 2021

Acquisitions fiscal 2021

Business Acquisition, Pro Forma Information


	For the years ended
	February 29/28
	2020		2021
		(Unaudited)		(Unaudited)

Pro forma net revenues	$	3,376,955	$	4,516,022
Pro forma net loss attributable to TAL Education Group	$	(173,199)	$	(119,780)
Pro forma net loss per share - basic	$	(0.87)	$	(0.59)
Pro forma net loss per share - diluted	$	(0.87)	$	(0.59)

Acquisitions fiscal 2020

Business Acquisition, Pro Forma Information


	For the years ended
	February 28/29
	2019		2020
	(Unaudited)		(Unaudited)

Pro forma net revenues	$	2,563,413	$	3,273,549
Pro forma net income/ (loss) attributable to TAL Education Group	$	367,041	$	(110,263)
Pro forma net income/ (loss) per share - basic	$	1.93	$	(0.56)
Pro forma net income/ (loss) per share - diluted	$	1.83	$	(0.56)

Dada

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed


			Amortization
	US$		period

Cash and cash equivalents	$	1,269
Net assets acquired, excluding cash and cash equivalents, intangible assets and related deferred tax liabilities		(172,118)
Intangible assets, net
User base and customer relationships		7,576	2 years
Trade name and domain names		13,452	5 years
Others		3,044	1 year
Goodwill		168,233
Deferred tax liabilities		(6,018)
Noncontrolling interests		(1,146)

Total purchase consideration	$	14,292

Shanghai Xiaoxin

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed


	US$

Cash consideration	$	69,798
Fair value of the previously held 39.7% equity interest:
Carrying amount		2,035
Gain on remeasurement of fair value as of acquisition date		26,291

Total	$	98,124


			Amortization
	US$		period

Cash and cash equivalents	$	11,310
Net assets acquired, excluding cash and cash equivalents, intangible assets and related deferred tax liabilities		19,860
Intangible assets
User base		8,152	7 years
Technology		1,283	5 years
Goodwill		89,536
Deferred tax liabilities		(2,359)
Noncontrolling interests		(29,658)

Total purchase consideration	$	98,124

Other acquisitions fiscal 2019

Business Acquisition, Pro Forma Information


	For the years ended
	February 28,
	2018		2019
		(Unaudited)		(Unaudited)

Pro forma net revenues	$	1,725,115	$	2,570,616
Pro forma net income attributable to TAL Education Group	$	187,607	$	357,886
Pro forma net income per share - basic	$	1.07	$	1.88
Pro forma net income per share - diluted	$	0.98	$	1.79

SHORT-TERM INVESTMENTS (Tables)

12 Months Ended

Feb. 28, 2021

SHORT-TERM INVESTMENTS

Schedule of short-term investments


	As of		As of
	February 29,		February 28,
	2020		2021

Held-to-maturity investments ⁽¹⁾	$	345,457	$	1,927,862
Variable-rate financial instruments ⁽²⁾		—		457,723
Available-for-sale securities⁽³⁾		—		308,970

	$	345,457	$	2,694,555

(1)

(2)

(3)

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Feb. 28, 2021

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Schedule of prepaid expenses and other current assets

Prepaid expenses and other current assets consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Accounts receivables	$	42,654	$	25,907
Prepayments to suppliers ⁽¹⁾		55,342		198,452
Interest receivable		22,108		44,614
Staff advances ⁽²⁾		3,206		3,175
Loan to employees, current portion ⁽³⁾		4,413		2,862
Other deposits		7,550		8,039
Prepaid VAT		6,284		33,656
Prepaid rental and related fee ⁽⁴⁾		7,335		8,057
Receivables from investees ⁽⁵⁾		13,304		—
Loans to third-parties ⁽⁶⁾		5,883		5,472
Receivables of withholding tax for employees related to share incentive plan ⁽⁷⁾		34,720		61,526
Others		4,553		11,350

	$	207,352	$	403,110

(1)

Prepayments to suppliers are primarily for advertising fees and other prepaid operating expenses.

(2)

Staff advances are provided to employees primarily for traveling, office expenses and other expenditures which are subsequently expensed as incurred.

(3)

(4)

(5)

(6)

Loans to third-parties are generally mature in less than one year, and certain loan was guaranteed by the borrower’s equity interests.

(7)

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Feb. 28, 2021

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment, net


	As of		As of
	February 29,		February 28,
	2020		2021

Building	$	59,489	$	64,246
Leasehold improvement		316,528		446,203
Computer, network equipment and software		178,876		260,265
Vehicles		704		877
Office equipment and furniture		30,596		34,571
Construction in progress		16,025		59,492

Total cost of property and equipment		602,218		865,654
Less: accumulated depreciation		(235,562)		(354,239)

	$	366,656	$	511,415

INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Feb. 28, 2021

INTANGIBLE ASSETS, NET

Schedule of intangible assets, net


	As of		As of
	February 29,		February 28,
	2020		2021

Trade name and domain names	$	27,982	$	41,707
User base and customer relationships		24,803		32,378
Licenses		28,476		28,796
Technology		13,230		14,308
Copyrights and teaching materials		5,974		6,026
Partnership agreements and school cooperation agreements		4,858		4,858
Others		2,687		5,655

Total cost of intangible assets		108,010		133,728
Less: accumulated amortization		(45,930)		(70,012)
Less: accumulated impairment loss		(358)		(358)
Add: foreign exchange difference		(2,737)		2,683

	$	58,985	$	66,041

LAND USE RIGHTS, NET (Tables)

12 Months Ended

Feb. 28, 2021

LAND USE RIGHTS, NET

Schedule Of Land Use Right, net


	As of		As of
	February 29,		February 28,
	2020		2021

Land use rights	$	207,657	$	207,657
Less: accumulated amortization		(2,804)		(7,149)

Add: foreign exchange difference		—		16,194

Land use rights, net	$	204,853	$	216,702

GOODWILL (Tables)

12 Months Ended

Feb. 28, 2021

GOODWILL

Schedule of changes in the carrying amount of goodwill


	As of		As of
	February 29,		February 28,
	2020		2021

Beginning balance	$	415,752	$	409,435
Addition (Note 3)		3,999		169,893
Accumulated impairment loss		(30,522)		(137,921)
Disposal and write-off		—		(2,652)
Exchange difference		(10,316)		15,658

Goodwill, net	$	378,913	$	454,413

LONG-TERM INVESTMENTS (Tables)

12 Months Ended

Feb. 28, 2021

LONG-TERM INVESTMENTS

Schedule of long-term investments

Long-term investments consisted of the following:


	As of		As of
	February 29,		February 28,
	2020		2021

Equity securities with readily determinable fair values
BabyTree Inc. (“BabyTree”) ⁽¹⁾		26,696		23,467

Equity securities without readily determinable fair values
Xiamen Meiyou Information and Technology Co., Ltd. (“Xiamen Meiyou”) ⁽²⁾		47,068		50,832
Other investments ⁽³⁾		84,681		91,145

Equity method investments
Long-term investment in third-party technology companies ⁽⁴⁾		102,314		100,018

Fair value option investment
Long-term investment in a third-party technology company		7,258		7,661

Available-for-sale investments
Changing Education Inc. (“Changing”) ⁽⁵⁾		148,405		148,955
Ximalaya Inc. (“Ximalaya”) ⁽⁶⁾		46,612		59,326
Other investments ⁽⁷⁾		108,567		153,507

Held-to-maturity investments ⁽⁸⁾		—		32,725

Total	$	571,601	$	667,636

(1)

In fiscal year 2019, the Group recognized disposal gain of $760, due to the partial disposal of the equity interest in BabyTree Inc. to a related party.

10. LONG-TERM INVESTMENTS – continued

In fiscal year 2020 and 2021, the stock price of BabyTree declined, and accordingly the Group recognized loss of $105,447 and $3,229, respectively, due to the fair value change.

(2)

(3)

(4)

(5)

10. LONG-TERM INVESTMENTS – continued

(6)

(7)

(8)

LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS (Tables)

12 Months Ended

Feb. 28, 2021

LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS

Schedule of long-term prepayments and other non-current assets


	As of		As of
	February 29,		February 28,
	2020		2021

Long-term prepayments ⁽¹⁾	$	36,989	$	154
Loan to employees ⁽²⁾		3,940		3,700
Loan receivable ⁽³⁾		32,661		36,012
Other non-current assets ⁽⁴⁾		11,685		17,828

	$	85,275	$	57,694

(1)

The balances at February 29, 2020 and February 28, 2021 represented the Group’s prepayments to acquire equity interests in third-party companies.

(2)

Please see Note 5(3) for details of loan to employees.

11. LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS – continued

(3)

(4)

As of February 29, 2020 and February 28, 2021, other non-current assets were primarily made up of prepayment for property and equipment, the construction in process and long-term service fees.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Feb. 28, 2021

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	As of		As of
	February 29,		February 28,
	2020		2021

Accrued employee payroll and welfare benefits	$	292,001	$	476,224
Refund liabilities		168,118		205,688
Accrued operating expenses		40,323		142,558
Other taxes payable		7,826		28,143
Payable for investments and acquisitions		404		312
Professional service fee payable		13,994		8,716
Payable for acquisitions of intangible assets		1,436		866
Interest payable		1,267		1,727
Others		27,281		47,049

Total	$	552,650	$	911,283

FAIR VALUE (Tables)

12 Months Ended

Feb. 28, 2021

FAIR VALUE

Schedule of inputs for fair value measurements of assets


	Fair Value Measurement at Reporting Date Using
			Quoted Prices in		Significant Other		Significant
	February 29,		Active Market for		Observable		Unobservable
Description	2020		Identical Assets		Inputs		Inputs
				(Level 1)		(Level 2)		(Level 3)

Long-term investments
Equity securities with readily determinable fair values	$	26,696	$	26,696		—		—
Fair value option investment	$	7,258		—		—	$	7,258
Available-for-sale investments	$	303,584		—		—	$	303,584

Total	$	337,538	$	26,696		—	$	310,842


	Fair Value Measurement at Reporting Date Using
			Quoted Prices in		Significant Other		Significant
	February 28,		Active Market for		Observable		Unobservable
Description	2021		Identical Assets		Inputs		Inputs
				(Level 1)		(Level 2)		(Level 3)

Short-term investments
Variable-rate financial instruments	$	457,723		—	$	457,723		—
Available-for-sale investments	$	308,970		—	$	308,970		—
Long-term investments
Equity securities with readily determinable fair values	$	23,467	$	23,467		—		—
Fair value option investment	$	7,661		—		—	$	7,661
Available-for-sale investments	$	361,788		—		—	$	361,788

Total	$	1,159,609	$	23,467	$	766,693	$	369,449

Schedule of roll forward of Level 3 instruments


	US$

Balance as of February 28, 2019	$	353,669

Purchase		95,269
Disposal		(1,512)
Changes in fair value		(45)
Impairment loss		(133,329)
Foreign exchange difference		(3,210)

Balance as of February 29, 2020	$	310,842
Purchase		20,349
Transfer in due to reclassification		22,579
Changes in fair value		19,145
Impairment loss		(10,029)
Foreign exchange difference		6,563

Balance as of February 28, 2021	$	369,449

LEASES (Tables)

12 Months Ended

Feb. 28, 2021

LEASES

Schedule of Supplemental information of the leases


	For the year ended,		For the year ended,
	February 29,		February 28,
	2020		2021
Cash payments for operating leases	$	314,099	$	419,926
Right-of-use assets obtained in exchange for operating lease liabilities		770,942		929,787

Schedule of Maturity analysis for operating lease liabilities


	As of February 28,
Fiscal year ending	2021

February 2022	$	419,504
February 2023		417,734
February 2024		351,370
February 2025		269,895
February 2026		192,374
Thereafter		235,810

Total future lease payments	$	1,886,687
Less: Imputed interest		(310,452)

Present value of operating lease liabilities	$	1,576,235

INCOME TAXES (Tables)

12 Months Ended

Feb. 28, 2021

INCOME TAXES

Schedule of provision (credit) for income tax


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Current
- PRC income tax expenses	$	94,722	$	127,731	$	161,488
Deferred
- PRC income tax expenses		(18,218)		(58,403)		(231,385)

Total	$	76,504	$	69,328	$	(69,897)

Schedule of deferred tax assets and liabilities


	As of		As of
	February 29,		February 28,
	2020		2021
Deferred tax assets:
Advertising expense and prepaid rental		50,187		229,735
Property and equipment		2,576		6,923
Impairment loss on long-term investments		4,559		19,870
Others		19,526		61,482
Tax losses carry-forward		84,007		185,700
Less: valuation allowance		(81,321)		(186,521)

Deferred tax assets, net	$	79,534	$	317,189

Deferred tax liabilities:
Intangible assets		6,984		10,207
Property and equipment		805		126

Deferred tax liabilities	$	7,789	$	10,333

Schedule of provision for income taxes


	For the year ended			For the year ended			For the year ended
	February 28,			February 29,			February 28,
	2019			2020			2021

Income/(loss) before provision for income tax	$	457,204		$	(50,653)		$	(224,623)
PRC statutory income tax rate		25	%		25	%		25	%

Income tax at statutory income tax rate		114,301			(12,663)			(56,156)
Effect of non-deductible expenses and loss and super deduction expenses		(6,252)			(18,117)			2,466
Effect of income tax exemptions and preferential tax rates		(45,625)			(36,750)			(98,368)
Effect of income tax rate difference in other jurisdictions		5,214			97,058			60,806
Change in valuation allowance		8,866			39,800			21,355

Income tax expense / (benefit)	$	76,504		$	69,328		$	(69,897)

Schedule of tax holiday


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Increase in income tax expenses	$	45,625	$	36,750	$	98,368
Net income / (loss) per common share-basic	$	1.69	$	(0.74)	$	(1.05)
Net income / (loss) per common share-diluted	$	1.61	$	(0.74)	$	(1.05)

NET INCOME / (LOSS) PER SHARE (Tables)

12 Months Ended

Feb. 28, 2021

NET INCOME / (LOSS) PER SHARE

Schedule of earnings per share


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Numerator:
Net income/(loss) attributable to TAL Education Group’s shareholders	$	367,236	$	(110,195)	$	(115,990)
Eliminate the dilutive effect of interest expense of the bond payable (i)		162		—		—

Numerator used for calculation of diluted net income/(loss) per share	$	367,398	$	(110,195)	$	(115,990)

Denominator:
Weighted average shares outstanding
Basic		189,951,643		198,184,370		203,603,391
Effect of dilutive securities:
Dilutive effect of non-vested shares and options (ii)		9,689,955		—		—
Dilutive effect of the bond payable (i)		583,336		—		—
Denominator for diluted net income/(loss) per share		200,224,934		198,184,370		203,603,391

Net income/(loss) per common share attributable to TAL Education Group’s shareholders-basic (iii)	$	1.93	$	(0.56)	$	(0.57)
Net income/(loss) per common share attributable to TAL Education Group’s shareholders-diluted	$	1.83	$	(0.56)	$	(0.57)

(i)

(ii)

(iii)

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Feb. 28, 2021

RELATED PARTY TRANSACTIONS

Schedule of related party transactions


	As of		As of
	February 29,		February 28,
	2020		2021

Amounts due from related parties-current ⁽ⁱ⁾	$	3,642	$	2,964
Amounts due to related parties-current ⁽ⁱⁱ⁾	$	4,361	$	3,488


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Services fees	$	1,888	$	6,350	$	3,745
Other revenue	$	1,374	$	4,113	$	1,680
Purchase of equipment	$	1,068	$	120	$	804
Disposal gain ⁽ⁱⁱⁱ⁾	$	760	$	—		—

(i)

The amounts due from related parties represent loans and prepayments to certain investees for service fees.

(ii)

The amounts due to related parties primarily related to service fees payable to related parties.

(iii)

As disclosed in Note 10(1), in fiscal year 2019, the Group disposed certain equity interests in BabyTree to a related party and recognized disposal gains of $760.

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Feb. 28, 2021

COMMITMENTS AND CONTINGENCIES

Schedule of future minimum payments under non-cancellable operating leases

Future minimum payments under non-cancelable agreements for property management fees as of February 28, 2021 were as follows:


Fiscal year ending
February 2022	$	30,372
February 2023		30,541
February 2024		24,966
February 2025		18,301
February 2026		11,893
Thereafter		18,664

Total	$	134,737

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Feb. 28, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of options fair value


	For the year ended		For the year ended		For the year ended
	February 28, 2019		February 29, 2020		February 28, 2021
Risk-free interest rate⁽¹⁾	2.89%-2.92	%	1.63%-2.35	%	0.31%-0.51	%
Expected life (years)⁽²⁾	6.00-6.25		6.00-6.25		6.25-7.43
Expected dividend yield⁽³⁾	0	%	0	%	0	%
Volatility⁽⁴⁾	34.0%-34.5	%	34.2%-35.1	%	35.8%-35.9	%
Fair value of options at grant date per share	$42.09 to $42.55		$43.53 to $72.09		$65.55 to $90.06

25. SHARE-BASED COMPENSATION - continued

Share options-continued

(1)

Risk-free interest rate

Risk-free interest rate for periods within the contractual life of the option is based upon the U.S. treasury yield curve in effect at the time of grant.

(2)

Expected life (years)

Assumption of the expected term were based on the vesting and contractual terms and employee demographics.

(3)

Expected dividend yield

The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options.

(4)

Volatility

Schedule of activities of share options


		Weighted	Weighted	Aggregate
		average	average remaining	intrinsic
	Number	exercise price	contractual	value
Share options	of shares	(US$)	life (Years)	(US$)

Outstanding as of February 29, 2020	1,047,125	35.03	7.25	134,183

Granted	82,003	222.56
Exercised	359,178	23.42
Forfeited	231,367	43.72

Outstanding as of February 28, 2021	538,583	67.58	6.96	88,975

Vested and expected to vest as of February 28, 2021	538,583	67.58	6.96	88,975
Exercisable as of February 28, 2021	224,969	33.61	6.06	44,771

Schedule of share-based compensation expense


	For the year ended		For the year ended		For the year ended
	February 28,		February 29,		February 28,
	2019		2020		2021

Cost of revenues	$	706	$	1,074	$	1,803
Selling and marketing expenses		10,454		19,356		56,609
General and administrative expenses		66,117		97,513		146,533

Total	$	77,277	$	117,943	$	204,945

Non-vested shares - service condition

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of non-vested shares under 2010 Plan


	Service Condition
	Number of	Weighted
	non-vested	average grant date
	shares	fair value

Outstanding as of February 29, 2020	10,272,692	47.73

Granted	1,737,898	210.77
Forfeited	1,361,601	56.77
Vested	2,264,663	49.16

Outstanding as of February 28, 2021	8,384,326	79.67

Non-vested shares - performance condition

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of non-vested shares under 2010 Plan


	Performance Condition
	Number of	Weighted
	non-vested	average grant date
	shares	fair value

Outstanding as of February 29, 2020	—

Granted	602,203	220.49
Forfeited	45,590	215.85

Outstanding as of February 28, 2021	556,613	220.87

ORGANIZATION AND PRINCIPAL ACTIVITIES - Subsidiaries (Details)	12 Months Ended
	Feb. 28, 2021
TAL Hong Kong
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%
TAL Beijing
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%
Huanqui Zhikang
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%
Yidu Huida
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%
Beijing Xintang Sichuang
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%
Zhixuesi Beijing
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%
Pengxin TAL
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%
Firstleap
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%
Firstleap Hong Kong
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%
Lebai Information
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%
Yizhen Xuesi
Subsidiaries, VIEs and VIEs subsidiaries
Subsidiaries direct or indirect ownership (as a percent)	100.00%

ORGANIZATION AND PRINCIPAL ACTIVITIES - Financial information (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Feb. 28, 2021 USD ($)	Feb. 29, 2020 USD ($)	Feb. 28, 2019 USD ($)	Feb. 28, 2021 CNY (¥)	Feb. 29, 2020 CNY (¥)
Balance Sheet
Cash and cash equivalents	$ 3,242,953	$ 1,873,866		¥ 1,754,509	¥ 1,435,739
Other current assets	11,350	4,553
Total current assets	8,156,835	2,495,781
Property and equipment, net	511,415	366,656
Other non-current assets	17,828	11,685
Total assets	12,112,309	5,571,246
Deferred revenue-current	1,387,493	780,167
Other current liabilities	47,049	27,281
Total current liabilities	3,373,851	1,806,558
Total liabilities	6,907,753	3,027,049
Income And Cash Flow Statement
Net revenues	4,495,755	3,273,308	$ 2,562,984
Net income (loss)	(143,050)	(127,651)	364,514
Net Cash Provided by (Used in) Operating Activities	954,732	855,850	194,361
Net Cash Provided by (Used in) Investing Activities	(2,641,469)	(338,815)	(166,584)
Net Cash Provided by (Used in) Financing Activities	4,794,813	131,231	475,019
VIE's
Balance Sheet
Cash and cash equivalents	820,301	350,035
Other current assets	324,568	159,706
Total current assets	1,144,869	509,741
Property and equipment, net	430,137	286,982
Other non-current assets	2,555,459	2,038,941
Total assets	4,130,465	2,835,664
Deferred revenue-current	1,328,473	733,253
Other current liabilities	1,488,763	898,959
Total current liabilities	2,817,236	1,632,212
Total non-current liabilities	1,163,622	891,633
Total liabilities	3,980,858	2,523,845
Income And Cash Flow Statement
Net revenues	4,244,907	3,058,285	2,406,642
Net income (loss)	488,866	534,070	606,560
Net Cash Provided by (Used in) Operating Activities	727,661	215,892	409,103
Net Cash Provided by (Used in) Investing Activities	(224,235)	(134,936)	(346,183)
Net Cash Provided by (Used in) Financing Activities	$ (3,518)	$ (5,173)	$ (4,392)

ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional information (Details)		12 Months Ended
	Oct. 26, 2015	Feb. 28, 2021 USD ($) Owner	Feb. 29, 2020 USD ($)	Feb. 28, 2019 USD ($)
Subsidiaries, VIEs and VIEs subsidiaries
VIE and subsidiaries, percentage of net revenue		94.40%
Service fees payable \| $		$ 417,544	$ 78,357	$ 128,088
Majority shareholder
Subsidiaries, VIEs and VIEs subsidiaries
Deed of undertaking (in percent)		50.00%
Xueersi Education and Xueersi Network
Subsidiaries, VIEs and VIEs subsidiaries
Number of owners		4
Xinxin Xiangrong
Subsidiaries, VIEs and VIEs subsidiaries
Number of owners		3
Lebai Information \| Lebai Education
Subsidiaries, VIEs and VIEs subsidiaries
Term of agreement entered on October 26, 2015 (in years)	10 years
Renewal term of agreement	10 years

SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net (Details)	12 Months Ended
	Feb. 28, 2021
Building \| Minimum
Property, plant and equipment
Useful life (in years)	35 years
Building \| Maximum
Property, plant and equipment
Useful life (in years)	64 years
Computer, network equipment and software
Property, plant and equipment
Useful life (in years)	3 years
Vehicles \| Minimum
Property, plant and equipment
Useful life (in years)	4 years
Vehicles \| Maximum
Property, plant and equipment
Useful life (in years)	5 years
Office equipment and furniture \| Minimum
Property, plant and equipment
Useful life (in years)	3 years
Office equipment and furniture \| Maximum
Property, plant and equipment
Useful life (in years)	5 years

SIGNIFICANT ACCOUNTING POLICIES - Acquired intangible assets (Details)	12 Months Ended
	Feb. 28, 2021
Trade name \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	1 year
Trade name \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	10 years
Student base \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	3 years
Student base \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	10 years
User base and customer relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	3 years
User base and customer relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	7 years
Technology \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	4 years
Technology \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	6 years
Partnership agreements and school cooperation agreements \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	4 years
Partnership agreements and school cooperation agreements \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	6 years
Licenses \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	2 years
Licenses \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	9 years
Others \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	1 year
Others \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	7 years

SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of net revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 4,495,755	$ 3,273,308	$ 2,562,984
Small class tutoring services, personalized premium services and others
Disaggregation of Revenue [Line Items]
Revenues	3,221,161	2,655,323	2,223,347
Online education services through www.xueersi.com
Disaggregation of Revenue [Line Items]
Revenues	$ 1,274,594	$ 617,985	$ 339,637

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 323
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
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-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) ¥ in Thousands, $ in Thousands		1 Months Ended					12 Months Ended
	Apr. 01, 2019	May 31, 2018	May 31, 2017	Nov. 30, 2016	May 31, 2016	Jun. 30, 2015	Feb. 28, 2021 USD ($)	Feb. 29, 2020 USD ($)	Feb. 28, 2019 USD ($)	Feb. 28, 2021 CNY (¥)	Mar. 01, 2020 USD ($)	Feb. 29, 2020 CNY (¥)	Mar. 01, 2019 USD ($)
Goodwill, Impairment Loss							$ 107,399	$ 28,998	$ 0
Contract liabilities of deferred revenue							1,417,498	781,000
VAT (as a percent)	13.00%	16.00%	16.00%
Operating lease right-of-use assets							1,545,735	1,243,692					$ 1,024,863
Operating lease liabilities							1,576,235						1,026,728
Advertising costs							803,120	248,807	114,697
Foreign currency translation, exchange gain (loss)							(12,311)	(968)	$ 3,108
Cash and cash equivalents							3,242,953	1,873,866		¥ 1,754,509		¥ 1,435,739
Adjustment in balance of retained earnings							624,883	$ 786,097
Debt securities, held-to-maturity, allowance for credit loss							$ 0
Cumulative adjustment \| ASU 2016-13
Adjustment in balance of retained earnings											$ 6,651
Xinxin Xiangrong
VAT (as a percent)						6.00%
Beijing Xintang Sichuang, TAL Beijing, Yidu Huida \| Xueersi Education
VAT (as a percent)							6.00%
Zhixuesi Beijing
VAT (as a percent)				6.00%
Pengxin TAL
VAT (as a percent)					6.00%
Yizhen Xuesi
VAT (as a percent)				6.00%
Online education services through www.xueersi.com
VAT (as a percent)							6.00%
Minimum
Maturity period of investments							3 months	3 months
VAT (as a percent)							3.00%
Maximum
Maturity period of investments							12 months	12 months
VAT (as a percent)							16.00%
Equity Securities Without Readily Determinable Fair Value [Member] \| Revision of Prior Period, Error Correction, Adjustment
Adjustment in balance of retained earnings													$ 4,163

BUSINESS ACQUISITION - Dada (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jan. 24, 2019
Shanghai Xiaoxin
Business Acquisition [Line Items]
Cash consideration		$ 69,798
Carrying amount		2,035
Gain on remeasurement of fair value as of acquisition date		26,291
Total		$ 98,124
Dada
Business Acquisition [Line Items]
Cash consideration	$ 10,437
Gain on remeasurement of fair value as of acquisition date	3,855
Total	$ 14,292

BUSINESS ACQUISITION - Dada, allocation (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jan. 24, 2019	Feb. 28, 2021	Feb. 29, 2020
Business Acquisition [Line Items]
Goodwill.			$ 454,413	$ 378,913
Shanghai Xiaoxin
Business Acquisition [Line Items]
Cash and cash equivalents		$ 11,310
Net assets acquired, excluding cash and cash equivalents, intangible assets and the related deferred tax liabilities		(19,860)
Goodwill.		89,536
Deferred tax liabilities		(2,359)
Noncontrolling interests		(29,658)
Total		98,124
Shanghai Xiaoxin \| User base and customer relationships
Business Acquisition [Line Items]
Intangible assets, net		$ 8,152
Amortization period
Amortization period (in years)		7 years
Shanghai Xiaoxin \| Technology
Business Acquisition [Line Items]
Intangible assets, net		$ 1,283
Amortization period
Amortization period (in years)		5 years
Dada
Business Acquisition [Line Items]
Cash and cash equivalents	$ 1,269
Net assets acquired, excluding cash and cash equivalents, intangible assets and the related deferred tax liabilities	(172,118)
Goodwill.	168,233		$ 168,233
Deferred tax liabilities	(6,018)
Noncontrolling interests	(1,146)
Total	14,292
Dada \| User base and customer relationships
Business Acquisition [Line Items]
Intangible assets, net	$ 7,576
Amortization period
Amortization period (in years)	2 years
Dada \| Trade name
Business Acquisition [Line Items]
Intangible assets, net	$ 13,452
Amortization period
Amortization period (in years)	5 years
Dada \| Others
Business Acquisition [Line Items]
Intangible assets, net	$ 3,044
Amortization period
Amortization period (in years)	1 year

BUSINESS ACQUISITION - Pro forma (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019	Feb. 28, 2018
Acquisitions fiscal 2021
Business Acquisition [Line Items]
Pro forma net revenues	$ 4,516,022	$ 3,376,955
Pro forma net income/ (loss) attributable to TAL Education Group	$ (119,780)	$ (173,199)
Pro forma net income/ (loss) per share - basic	$ (0.59)	$ (0.87)
Pro forma net income/ (loss) per share - diluted	$ (0.59)	$ (0.87)
Acquisitions fiscal 2020
Business Acquisition [Line Items]
Pro forma net revenues		$ 3,273,549	$ 2,563,413
Pro forma net income/ (loss) attributable to TAL Education Group		$ (110,263)	$ 367,041
Pro forma net income/ (loss) per share - basic		$ (0.56)	$ 1.93
Pro forma net income/ (loss) per share - diluted		$ (0.56)	$ 1.83
Other acquisitions fiscal 2019
Business Acquisition [Line Items]
Pro forma net revenues			$ 2,570,616	$ 1,725,115
Pro forma net income/ (loss) attributable to TAL Education Group			$ 357,886	$ 187,607
Pro forma net income/ (loss) per share - basic			$ 1.88	$ 1.07
Pro forma net income/ (loss) per share - diluted			$ 1.79	$ 0.98

BUSINESS ACQUISITION - Additional information (Details) $ in Thousands				12 Months Ended
	Apr. 30, 2020 USD ($)	Feb. 28, 2019 USD ($)	Jan. 24, 2019 USD ($)	Feb. 28, 2021 USD ($) item shares	Feb. 29, 2020 USD ($) shares	Feb. 28, 2019 USD ($) shares	Feb. 28, 2018
Business Acquisition [Line Items]
Goodwill.				$ 454,413	$ 378,913
Common Class A
Business Acquisition [Line Items]
Stock consideration (in shares) \| shares				0	24,702	20,502
Shanghai Xiaoxin
Business Acquisition [Line Items]
Ownership (as a percent)			69.20%				39.70%
Total purchase consideration			$ 98,124
Cash consideration			69,798
Remeasurement gain on acquisition			26,291
Goodwill.			$ 89,536
Dada
Business Acquisition [Line Items]
Ownership (as a percent)	92.60%				22.70%
Total purchase consideration	$ 14,292
Cash consideration	10,437
Remeasurement gain on acquisition	3,855
Goodwill.	$ 168,233			$ 168,233
Acquisitions fiscal 2021
Business Acquisition [Line Items]
Total purchase consideration				2,936
Intangible assets				1,351
Goodwill.				$ 1,660
Acquisitions fiscal 2020
Business Acquisition [Line Items]
Number of acquisitions \| item				2
Total purchase consideration				$ 2,853
Intangible assets				321
Goodwill.				$ 3,999
Other acquisitions fiscal 2019
Business Acquisition [Line Items]
Total purchase consideration					$ 54,289
Cash consideration					44,356
Stock consideration					3,703
Equity interests					6,230
Intangible assets		$ 11,943				$ 11,943
Goodwill.		40,238				$ 40,238
Other acquisitions fiscal 2019 \| Common Class A
Business Acquisition [Line Items]
Stock consideration		$ 1,977			$ 1,726

SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
SHORT-TERM INVESTMENTS
Held-to-maturity investments	$ 1,927,862	$ 345,457
Variable-rate financial instruments	457,723
Available-for-sale securities	308,970
Short-term investments	$ 2,694,555	$ 345,457

SHORT-TERM INVESTMENTS - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020
Loss on investment	$ 450
Loss from changes in fair value	$ 1,032
Minimum
Maturity period of investments	3 months	3 months
Maximum
Maturity period of investments	12 months	12 months

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Accounts receivables	$ 25,907	$ 42,654
Prepayments to suppliers	198,452	55,342
Interest receivable	44,614	22,108
Staff advances	3,175	3,206
Loan to employees, current portion	2,862	4,413
Other deposits	8,039	7,550
Prepaid VAT	33,656	6,284
Prepaid rental and related fee	8,057	7,335
Receivables from investees		13,304
Loans to third-parties	5,472	5,883
Receivables of withholding tax for employees related to share incentive plan	61,526	34,720
Others	11,350	4,553
Prepaid expenses and other current assets	$ 403,110	$ 207,352

PREPAID EXPENSES AND OTHER CURRENT ASSETS - Additional information (Details) - item	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020
Number of domestic investees	2
Loans to employees
Service requirement to qualify for (in years)	3 years	3 years
Debt instrument term (in years)	4 years	4 years

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 865,654	$ 602,218
Less: accumulated depreciation	(354,239)	(235,562)
Property and equipment, net	511,415	366,656
Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	64,246	59,489
Leasehold improvement
Property, Plant and Equipment [Line Items]
Property and equipment, gross	446,203	316,528
Computer, network equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	260,265	178,876
Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	877	704
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Property and equipment, gross	34,571	30,596
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 59,492	$ 16,025

PROPERTY AND EQUIPMENT, NET - Depreciation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
PROPERTY AND EQUIPMENT, NET
Depreciation	$ 136,960	$ 99,511	$ 76,669

INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	12 Months Ended
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
Intangible assets
Intangible assets, gross	$ 133,728	$ 108,010
Less: accumulated amortization	(70,012)	(45,930)
Less: accumulated impairment loss	(358)	(358)
Add: foreign exchange difference	2,683	(2,737)
Intangible assets, net	66,041	58,985
Trade name
Intangible assets
Intangible assets, gross	41,707	27,982
User base and customer relationships
Intangible assets
Intangible assets, gross	32,378	24,803
Licenses
Intangible assets
Intangible assets, gross	28,796	28,476
Technology
Intangible assets
Intangible assets, gross	14,308	13,230
Student base
Intangible assets
Intangible assets, gross	6,026	5,974
Partnership agreements and school cooperation agreements
Intangible assets
Intangible assets, gross	4,858	4,858
Others
Intangible assets
Intangible assets, gross	$ 5,655	$ 2,687

INTANGIBLE ASSETS, NET - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
INTANGIBLE ASSETS, NET
Amortization of Intangible Assets	$ 24,030	$ 15,677	$ 12,166
Estimated amortization expense year one	20,837
Estimated amortization expense year two	14,543
Estimated amortization expense year three	11,110
Estimated amortization expense year four	9,431
Estimated amortization expense year five	6,324
Impairment loss on acquired intangible assets	$ 136	$ 0	$ 0

LAND USE RIGHTS, NET (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
Finite-Lived Intangible Assets [Line Items]
Land use rights	$ 133,728	$ 108,010
Less: accumulated amortization	(70,012)	(45,930)
LAND USE RIGHTS
Finite-Lived Intangible Assets [Line Items]
Land use rights	207,657	207,657
Less: accumulated amortization	(7,149)	(2,804)
Add: foreign exchange difference	16,194
Land use rights, net	$ 216,702	$ 204,853

LAND USE RIGHTS, NET - Amortization Expense (Details) $ in Thousands, ¥ in Millions			12 Months Ended
	Jul. 08, 2019 CNY (¥) m²	Mar. 19, 2019 CNY (¥) m²	Feb. 28, 2021 USD ($)	Feb. 29, 2020 USD ($)	Feb. 28, 2019 USD ($)
Finite-Lived Intangible Assets [Line Items]
Cost of land use rights				$ 6,780	$ 209,865
Amortization of Intangible Assets			$ 24,030	15,677	$ 12,166
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2021			20,837
2022			14,543
2023			11,110
2024			9,431
2025			$ 6,324
LAND USE RIGHTS
Finite-Lived Intangible Assets [Line Items]
Number of land use rights acquired		2
Useful life			50 years
Amortization of Intangible Assets			$ 4,345	$ 2,804
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2021			4,531
2022			4,531
2023			4,531
2024			4,531
2025			4,531
Thereafter			$ 194,047
LAND USE RIGHTS \| Zhenjiang, Jiangsu
Finite-Lived Intangible Assets [Line Items]
Cost of land use rights \| ¥		¥ 92
Number of square meters of land use rights acquired \| m²		83,025
LAND USE RIGHTS \| Beijing
Finite-Lived Intangible Assets [Line Items]
Cost of land use rights \| ¥	¥ 1,360
Number of square meters of land use rights acquired \| m²	28,600

GOODWILL (Details) - USD ($) $ in Thousands	12 Months Ended
GOODWILL (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019	Apr. 30, 2020
Goodwill [Line Items]
Beginning balance	$ 409,435	$ 415,752
Addition (Note 3)	169,893	3,999
Accumulated impairment loss	(137,921)	(30,522)
Disposal and write-off	(2,652)
Exchange difference	15,658	(10,316)
Goodwill, net	454,413	378,913
Impairment	107,399	$ 28,998	$ 0
Dada
Goodwill [Line Items]
Goodwill, net	$ 168,233			$ 168,233

LONG-TERM INVESTMENTS (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
Schedule of Investments [Line Items]
Held-to-maturity investments	$ 32,725
Total	667,636	$ 571,601
BabyTree
Schedule of Investments [Line Items]
Equity securities with readily determinable fair values	23,467	26,696
Xiamen Meiyou Information and Technology Co., Ltd. ("Xiamen Meiyou")
Schedule of Investments [Line Items]
Equity securities without readily determinable fair values	50,832	47,068
Other investments
Schedule of Investments [Line Items]
Equity securities without readily determinable fair values	91,145	84,681
Available-for-sale investments	153,507	108,567
Long term Investment In Third party technology Company
Schedule of Investments [Line Items]
Equity method investments	100,018	102,314
Fair value option investment	7,661	7,258
Changing
Schedule of Investments [Line Items]
Available-for-sale investments	148,955	148,405
Ximalaya Inc
Schedule of Investments [Line Items]
Available-for-sale investments	$ 59,326	$ 46,612

LONG-TERM INVESTMENTS - Additional information (Details)	1 Months Ended	12 Months Ended
	Jan. 31, 2014 USD ($)	Feb. 28, 2021 USD ($) Transaction	Feb. 29, 2020 USD ($)	Feb. 28, 2019 USD ($)	Dec. 31, 2018
Schedule of Investments [Line Items]
Payments to acquire Long-term Investment		$ 53,334,000	$ 117,508,000	$ 243,542,000
Gain (Loss) on disposal		619,000	25,002,000	3,363,000
Gain recognized for the conversion of debt securities to equity securities				95,491,000
Fair value gain (loss)		7,588,000	1,165,000	1,751,000
Equity method investments, impairment gain (loss)		$ 11,471,000	17,198,000	8,719,000
Term of held to maturity securities		2 years
BabyTree
Schedule of Investments [Line Items]
Payments to acquire Long-term Investment	$ 23,475,000
Gain (Loss) on disposal				760,000
Gain recognized for the conversion of debt securities to equity securities				95,491,000
Loss on change in fair value		$ 3,229,000	105,447,000
Other investments
Schedule of Investments [Line Items]
Impairment loss		3,063,000	3,444,000	14,489,000
Xiamen Meiyou Information and Technology Co., Ltd. ("Xiamen Meiyou")
Schedule of Investments [Line Items]
Acquired equity interest (in percentage)					15.32
Impairment loss		0
Long term Investment In Third party technology Company
Schedule of Investments [Line Items]
Impairment gain (loss)		$ (10,029,000)	$ (2,137,000)	$ (34,883,000)
Changing
Schedule of Investments [Line Items]
Equity interest of available for sale investment (in percentage)		34.55
Ximalaya Inc
Schedule of Investments [Line Items]
Number of transactions \| Transaction		2
Equity interest of available for sale investment (in percentage)		1.69

LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS
Long-term prepayments	$ 154	$ 36,989
Loan to employees	3,700	3,940
Loan receivable	36,012	32,661
Other non-current assets	17,828	11,685
Long-term prepayments and other non-current assets	$ 57,694	$ 85,275

LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS
Accumulated interest income	$ 8,010	$ 5,368
Impairment loss	$ 30,724	$ 0	$ 0

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued employee payroll and welfare benefits	$ 476,224	$ 292,001
Refund liabilities	205,688	168,118
Accrued operating expenses	142,558	40,323
Other taxes payable	28,143	7,826
Payable for investments and acquisitions	312	404
Professional service fee payable	8,716	13,994
Payable for acquisitions of intangible assets	866	1,436
Interest payable	1,727	1,267
Others	47,049	27,281
Accrued expenses and other current liabilities	$ 911,283	$ 552,650

BOND PAYABLE (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
BOND PAYABLE (Details) $ / shares in Units, $ in Thousands	Jan. 31, 2021 USD ($) $ / shares	Feb. 28, 2021 USD ($)	Feb. 29, 2020 USD ($)	Feb. 28, 2019 USD ($)	Jan. 29, 2021 USD ($)	Jan. 28, 2021 USD ($)
Debt Instrument [Line Items]
Interest Expense		$ 16,946	$ 11,820	$ 17,628
Debt conversion carrying amount			5,250	5,800
Index shares, proceeds from exercise			$ (66,346)	$ (13,270)
ADS
Debt Instrument [Line Items]
Debt conversion carrying amount		0
Convertible bond
Debt Instrument [Line Items]
Interest Expense		$ 1,039
Notes
Debt Instrument [Line Items]
Principal amount					$ 1,050,000	$ 1,250,000
Interest rate (as a percent)	0.50%
Net proceeds from issuance of debt	$ 2,300,000
Debt Instrument Repurchase Price As Percentage To The Principal Amount	100.00%
Notes \| ADS
Debt Instrument [Line Items]
Debt Instrument conversion ratio (per $1K principal amount)	12.4611
Conversion price (per share) \| $ / shares	$ 80.25

LONG-TERM DEBT AND SHORT-TERM DEBT (Details) $ in Thousands, ¥ in Millions		1 Months Ended
	Feb. 01, 2019 USD ($)	Dec. 31, 2019 CNY (¥)	Oct. 31, 2019 USD ($)	Feb. 20, 2021 USD ($)
Facilities agreement of 2019
Debt instrument term (in years)	3 years
Maximum borrowing capacity	$ 600,000
Commitment Fee, Percentage	0.35%
Debt instrument, issue costs	$ 12,600
Facilities agreement of 2019 \| LIBOR
Basis points	175
Facilities agreement of 2019 \| Bullet maturity loan
Debt instrument term (in years)	3 years		3 years
Maximum borrowing capacity	$ 270,000
Proceeds from Lines of Credit			$ 270,000
Facilities agreement of 2019 \| Revolving facility
Debt instrument term (in years)	3 years
Maximum borrowing capacity	$ 330,000			$ 330,000
Facilities Agreement of Zhenjiang
Debt instrument term (in years)		8 years
Maximum borrowing capacity \| ¥		¥ 1,800
Basis points		39

FAIR VALUE (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
Short-term investments
Variable-rate financial instruments	$ 457,723
Available-for-sale investments	308,970
Fair Value, Measurements, Recurring
Short-term investments
Variable-rate financial instruments	457,723
Available-for-sale investments	308,970
Long-term investments
Equity Securities, FV-NI	23,467	$ 26,696
Fair value option investment	7,661	7,258
Available-for-sale investments	361,788	303,584
Total	1,159,609	337,538
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 1
Long-term investments
Equity Securities, FV-NI	23,467	26,696
Total	23,467	26,696
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 2
Short-term investments
Variable-rate financial instruments	457,723
Available-for-sale investments	308,970
Long-term investments
Total	766,693
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3
Long-term investments
Fair value option investment	7,661	7,258
Available-for-sale investments	361,788	303,584
Total	$ 369,449	$ 310,842

FAIR VALUE- Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
FAIR VALUE- Rollforward (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
FAIR VALUE
Balance at the beginning of the period	$ 310,842	$ 353,669
Purchase	20,349	95,269
Disposal		(1,512)
Transfer in due to reclassification	22,579
Changes in fair value	19,145	(45)
Impairment loss	(10,029)	(133,329)
Foreign exchange difference	6,563	(3,210)
Balance at the end of the period	$ 369,449	$ 310,842

FAIR VALUE - Additional information (Details) - Fair Value, Inputs, Level 3	Feb. 28, 2021
Measurement Input, Weighted Average Cost of Capital \| Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-sale, Measurement Input	24
Measurement Input, Weighted Average Cost of Capital \| Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-sale, Measurement Input	18
Measurement Input, Weighted Average Cost of Capital \| Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-sale, Measurement Input	22
Measurement Input, Discount for Lack of Marketability \| Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-sale, Measurement Input	30
Measurement Input, Discount for Lack of Marketability \| Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-sale, Measurement Input	15
Measurement Input, Discount for Lack of Marketability \| Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-sale, Measurement Input	25
Measurement Input, Price Volatility \| Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-sale, Measurement Input	71
Measurement Input, Price Volatility \| Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-sale, Measurement Input	46
Measurement Input, Price Volatility \| Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-sale, Measurement Input	61

LEASES - Supplemental in formation of leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020
LEASES
Operating lease cost	$ 431,976	$ 338,593
Short-term lease cost	$ 1,319	$ 1,184
Weighted-average remaining lease term - operating leases	4 years 10 months 24 days	4 years 10 months 24 days
Weighted-average discount rate - operating leases	4.80%	4.80%
Other information
Cash paid for amounts included in the measurement of lease liabilities	$ 419,926	$ 314,099
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 929,787	$ 770,942

LEASES - Maturity analysis of leases liabilities (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Mar. 01, 2019
Lessee, Operating Lease, Liability, Payment, Due
February 2022	$ 419,504
February 2023	417,734
February 2024	351,370
February 2025	269,895
February 2026	192,374
Thereafter	235,810
Total	1,886,687
Less: Imputed interest	(310,452)
Present value of operating lease liabilities	$ 1,576,235	$ 1,026,728
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent
Lease not yet commenced , contract value	$ 38,793

LEASES - Future minimum lease payments under ASC 840 (Details) $ in Thousands	Feb. 28, 2021 USD ($)
LEASES
Total	$ 134,737

INCOME TAXES - Expense (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - Expense (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
Deferred
Total	$ (69,897)	$ 69,328	$ 76,504
PRC
Current
- PRC income tax expenses	161,488	127,731	94,722
Deferred
- PRC income tax expenses	(231,385)	(58,403)	(18,218)
Total	$ (69,897)	$ 69,328	$ 76,504

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
Deferred tax assets:
Advertising expense and prepaid rental	$ 229,735	$ 50,187
Property and equipment	6,923	2,576
Impairment loss on long-term investments	19,870	4,559
Others	61,482	19,526
Tax losses carry-forward	185,700	84,007
Less: valuation allowance	(186,521)	(81,321)
Deferred tax assets, net	317,189	79,534
Deferred tax liabilities:
Intangible assets	10,207	6,984
Property and equipment	126	805
Deferred tax liabilities	$ 10,333	$ 7,789

INCOME TAXES - Provision (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - Provision (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
Reconciliation of the PRC statutory tax rate to the effective tax rate
Income/(loss) before provision for income tax	$ (224,623)	$ (50,653)	$ 457,204
PRC statutory income tax rate	25.00%	25.00%	25.00%
Income tax at statutory income tax rate	$ (56,156)	$ (12,663)	$ 114,301
Effect of non-deductible expenses and loss and super deduction expenses	2,466	(18,117)	(6,252)
Effect of income tax exemptions and preferential tax rates	(98,368)	(36,750)	(45,625)
Effect of income tax rate difference in other jurisdictions	60,806	97,058	5,214
Change in valuation allowance	21,355	39,800	8,866
Income tax expense / (benefit)	$ (69,897)	$ 69,328	$ 76,504

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - Tax Holiday (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
INCOME TAXES
Increase in income tax expenses	$ 98,368	$ 36,750	$ 45,625
Net income / (loss) per common share-basic (in dollars per share)	$ (1.05)	$ (0.74)	$ 1.69
Net income / (loss) per common share-diluted (in dollars per share)	$ (1.05)	$ (0.74)	$ 1.61

INCOME TAXES - Additional information (Details) ¥ in Millions, $ in Millions	12 Months Ended											48 Months Ended	60 Months Ended	72 Months Ended	108 Months Ended
	Feb. 28, 2021 HKD ($)	Feb. 28, 2021 USD ($)	Feb. 28, 2021 CNY (¥)	Dec. 31, 2020	Feb. 29, 2020 USD ($)	Dec. 31, 2019	Feb. 28, 2019 USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2008	Dec. 31, 2019	Dec. 31, 2022	Dec. 31, 2020	Dec. 31, 2022	Feb. 28, 2018 USD ($)
Income taxes
Deferred Tax Assets, Valuation Allowance		$ 186,521,000			$ 81,321,000
Uncertain tax positions		0			$ 0		$ 0
Unrecognized Tax Benefits		$ 0
Income Tax Statute Of Limitations Special Circumstance Minimum Underpayment Of Tax Liability \| ¥			¥ 0.1
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	25.00%	25.00%	25.00%		25.00%		25.00%
Withholding Tax Rate On Dividend Distributed By Foreign Investment Entities	10.00%	10.00%	10.00%
Hong Kong
Income taxes
Statutory rate - tier one	8.25%	8.25%	8.25%
Taxable Income Under Tier One Tax Rate	$ 2
Statutory rate - tier two	16.50%	16.50%	16.50%
Income tax accrual					$ 0		$ 0									$ 0
Assessable income		$ 0			0		$ 0
PRC
Income taxes
Income tax rate (as a percent)											25.00%
Operating Loss Carryforwards		752,251,000
Undistributed earnings		$ 2,583,994			$ 1,807,724
PRC \| TAL Beijing
Income taxes
HNTE tax rate (as a percent)	15.00%	15.00%	15.00%
PRC \| Yidu Huida
Income taxes
HNTE tax rate (as a percent)														15.00%
Key Software Enterprise tax rate (as a percent)									10
PRC \| Beijing Xintang Sichuang
Income taxes
HNTE tax rate (as a percent)													15.00%
Key Software Enterprise tax rate (as a percent)				10
PRC \| Yizhen Xuesi
Income taxes
Income tax rate (as a percent)				12.50%		12.50%
PRC \| Lebai Information
Income taxes
Income tax rate (as a percent)	12.50%	12.50%	12.50%
PRC \| Key Software Enterprise \| TAL Beijing
Income taxes
Key Software Enterprise tax rate (as a percent)					10	10		10
PRC \| Key Software Enterprise \| Yidu Huida
Income taxes
Key Software Enterprise tax rate (as a percent)	10	10	10									10
PRC \| High And New Technology Enterprise \| TAL Beijing
Income taxes
HNTE tax rate (as a percent)	15.00%	15.00%	15.00%
PRC \| High And New Technology Enterprise \| Yidu Huida
Income taxes
Income tax rate (as a percent)														15.00%
HNTE tax rate (as a percent)	15.00%	15.00%	15.00%
PRC \| High And New Technology Enterprise \| Beijing Xintang Sichuang
Income taxes
HNTE tax rate (as a percent)	15.00%	15.00%	15.00%
PRC \| Yinghe Youshi
Income taxes
HNTE tax rate (as a percent)	15.00%	15.00%	15.00%	15.00%		15.00%		15.00%	15.00%	15.00%
PRC \| Subsequent Event \| TAL Beijing
Income taxes
HNTE tax rate (as a percent)															15.00%

COMMON SHARES (Details)							12 Months Ended
COMMON SHARES (Details)	Jan. 22, 2021 USD ($)	Dec. 28, 2020 shares	Nov. 20, 2020 USD ($)	Nov. 12, 2020 shares	Feb. 25, 2019 USD ($)	Feb. 18, 2019 shares	Feb. 28, 2021 USD ($) class shares	Feb. 29, 2020 shares	Feb. 28, 2019 USD ($) shares	Apr. 28, 2020 USD ($)
Classes of common shares \| class							2
Proceeds from Issuance of Private Placement \| $							$ 2,500,000,000		$ 500,000,000
Common Class A
Common Stock, Voting Rights							one
Shares converted (in shares)							2,000	3,614,796	0
Shares issued		4,984,051		7,575,756		5,329,922	2,240,585	2,239,239	2,073,711
Stock consideration (in shares)							0	24,702	20,502
Exercise of share options (in shares)							359,178	114,793	232,024
Conversion of Stock, Shares Issued							0	401,074	443,091
Repurchase of shares							61,667
Aggregate consideration \| $										$ 9,852,000
Proceeds from Issuance of Private Placement \| $	$ 1,000,000		$ 1,500,000		$ 500,000,000
Common Class A \| Share options
Exercise of share options (in shares)							359,178	114,793	232,024
Common Class A \| Maximum
Maximum repurchase amount \| $										$ 500,000,000
Common Class B
Common Stock, Voting Rights							ten
Conversion ratio of Class B into Class A							1
Shares converted (in shares)							2,000	3,614,796	0
ADS
Shares issued							6,721,755	6,717,717	6,221,133
Conversion of Stock, Shares Issued							0	1,203,222	1,329,273
ADS \| Share options
Exercise of share options (in shares)							1,077,534	344,379	696,072

NET INCOME / (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
Numerator:
Net income/(loss) attributable to TAL Education Group's shareholders	$ (115,990)	$ (110,195)	$ 367,236
Eliminate the dilutive effect of interest expense of the bond payable			162
Numerator used for calculation of diluted net income/(loss) per share	$ (115,990)	$ (110,195)	$ 367,398
Denominator:
Weighted average shares outstanding: Basic	203,603,391	198,184,370	189,951,643
Effect of dilutive securities:
Dilutive effect of non-vested shares and options			9,689,955
Dilutive effect of the bond payable			583,336
Denominator for diluted net income/(loss) per share	203,603,391	198,184,370	200,224,934
Net income/(loss) per common share attributable to TAL Education Group's shareholders-basic	$ (0.57)	$ (0.56)	$ 1.93
Net income/(loss) per common share attributable to TAL Education Group's shareholders-diluted	$ (0.57)	$ (0.56)	$ 1.83

NET INCOME / (LOSS) PER SHARE - Additional information (Details) - shares	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
NET INCOME / (LOSS) PER SHARE
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	9,479,522	11,319,817	2,559,254

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
RELATED PARTY TRANSACTIONS
Amounts due from related parties-current	$ 2,964	$ 3,642
Amounts due to related parties-current	$ 3,488	$ 4,361

RELATED PARTY TRANSACTIONS - Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
RELATED PARTY TRANSACTIONS
Services fees	$ 3,745	$ 6,350	$ 1,888
Other revenue	1,680	4,113	1,374
Purchase of equipment	$ 804	$ 120	1,068
Disposal gain			$ 760

RELATED PARTY TRANSACTIONS - Due to related parties (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
Amounts due to related parties-current	$ 3,488	$ 4,361
Disposal gain			$ 760
Related party investment payable
Impairment loss	$ 16,087	$ 33,184
BabyTree
Disposal gain			$ 760

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Feb. 28, 2021 USD ($)
COMMITMENTS AND CONTINGENCIES
February 2022	$ 30,372
February 2023	30,541
February 2024	24,966
February 2025	18,301
February 2026	11,893
Thereafter	18,664
Total	$ 134,737

COMMITMENTS AND CONTINGENCIES - Additional information (Details) $ in Thousands	Feb. 28, 2021 USD ($)
Capital commitment \| Beijing
Commitments and Contingencies	$ 306,691
Capital commitment \| Jiangsu
Commitments and Contingencies	196,108
Investment commitment
Commitments and Contingencies	$ 12,895

SEGMENT INFORMATION (Details)	12 Months Ended
SEGMENT INFORMATION (Details)	Feb. 28, 2021 segment
SEGMENT INFORMATION
Operating segments	1
Reporting segments	1

MAINLAND CHINA CONTRIBUTION PLAN (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
MAINLAND CHINA CONTRIBUTION PLAN
Defined Contribution Plan, Cost	$ 289,416	$ 220,366	$ 173,050

STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020
STATUTORY RESERVES AND RESTRICTED NET ASSETS
Appropriation of after tax income to statutory surplus reserve per annum	10.00%
Reserve level threshold for mandatory transfer percentage	50.00%
Minimum appropriation of after tax income to development fund for private schools requiring reasonable return	25.00%
Minimum appropriation of annual increase of net assets to development fund for private schools that do not require reasonable return	25.00%
Appropriations to statutory surplus reserve	$ 1,721	$ 2,709
Appropriations to development fund	36,852	21,313
Paid-in capital of Company's PRC subsidiaries, VIEs and VIEs' subsidiaries	669,242	580,551
Statutory reserve of Company's PRC subsidiaries, VIEs and VIEs' subsidiaries	121,285	82,712
Total of restricted net assets of Company's PRC subsidiaries, VIEs and VIEs' subsidiaries	$ 790,527	$ 663,263

SHARE-BASED COMPENSATION (Details) - $ / shares	12 Months Ended
SHARE-BASED COMPENSATION (Details) - $ / shares	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
Non-vested shares - service condition
Number of non-vested shares
Outstanding at the beginning of the period (in shares)	10,272,692
Granted (in shares)	1,737,898	1,376,628	2,801,437
Forfeited (in shares)	1,361,601
Vested (in shares)	2,264,663
Outstanding at the end of the period (in shares)	8,384,326	10,272,692
Weighted average grant date fair value
Outstanding at the beginning of the period (in dollars per share)	$ 47.73
Granted (in dollars per share)	210.77
Forfeited (in dollars per share)	56.77
Vested (in dollars per share)	49.16
Outstanding at the end of the period (in dollars per share)	$ 79.67	$ 47.73
Non-vested shares - performance condition
Number of non-vested shares
Granted (in shares)	602,203
Forfeited (in shares)	45,590
Outstanding at the end of the period (in shares)	556,613
Weighted average grant date fair value
Granted (in dollars per share)	$ 220.49
Forfeited (in dollars per share)	215.85
Outstanding at the end of the period (in dollars per share)	$ 220.87

SHARE-BASED COMPENSATION - Fair value (Details) - $ / shares	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free interest rate	0.31%	1.63%	2.89%
Expected life (years)	6 years 3 months	6 years	6 years
Volatility	35.80%	34.20%	34.00%
Fair value of options at grant date per share	$ 65.55	$ 43.53	$ 42.09
Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free interest rate	0.51%	2.35%	2.92%
Expected life (years)	7 years 5 months 4 days	6 years 3 months	6 years 3 months
Volatility	35.90%	35.10%	34.50%
Fair value of options at grant date per share	$ 90.06	$ 72.09	$ 42.55

SHARE-BASED COMPENSATION - Options (Details) - Share options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average number of shares, Outstanding	1,047,125
Weighted average number of shares granted	82,003
Weighted average number of shares exercised	359,178
Weighted average number of shares forfeited	231,367
Weighted average number of shares, Outstanding	538,583	1,047,125
Weighted average number of shares vested and expected to vest	538,583
Weighted average number of shares exercisable	224,969
Weighted average remaining exercise price, Outstanding	$ 35.03
Weighted average remaining exercise price, Granted	222.56
Weighted average remaining exercise price, Exercised	23.42
Weighted average remaining exercise price, Forfeited	43.72
Weighted average remaining exercise price, Outstanding	67.58	$ 35.03
Weighted average remaining exercise price, Vested and expected to vest	67.58
Weighted average remaining exercise price, Exercisable	$ 33.61
Aggregate intrinsic contractual life (Years), Outstanding	6 years 11 months 15 days	7 years 3 months
Aggregate intrinsic contractual life (Years), Vested and expected to vest	6 years 11 months 15 days
Aggregate intrinsic contractual life (Years), Exercisable	6 years 21 days
Value, Outstanding	$ 88,975	$ 134,183
Value, Vested and expected to vest	88,975
Value, Exercisable	$ 44,771

SHARE-BASED COMPENSATION - Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 204,945	$ 117,943	$ 77,277
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,803	1,074	706
Selling and marketing expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	56,609	19,356	10,454
General and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 146,533	$ 97,513	$ 66,117

SHARE-BASED COMPENSATION - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2010	Feb. 28, 2022	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (as percent of total issued and outstanding)	5.00%	5.00%
Shares authorized threshold (as percent of outstanding)	1.00%	1.00%
Share-based compensation expense				$ 204,945	$ 117,943	$ 77,277
Share options, exercised intrinsic value				74,154	12,139	19,863
Share options, vested fair value				4,315	3,225	2,764
Share options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense				3,979	$ 3,916	$ 3,046
Unrecognized compensation expense				$ 11,530
Unrecognized compensation expense recognition period (in years)				3 years 10 months 24 days
Share options granted (in shares)				82,003	203,179	23,000
Share options low limit (per share)				$ 208.41	$ 63.00	$ 107.67
Share options high limit (per share)				$ 239.01	$ 115.80	$ 109.98
Non-vested shares - service condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				1,737,898	1,376,628	2,801,437
Share-based compensation expense				$ 146,410	$ 114,027	$ 74,231
Unrecognized compensation expense recognition period (in years)			4 years
Non-vested shares fair value				111,331	$ 77,012	$ 41,527
Non vested unrecognized compensation expense				$ 552,612
Non-vested shares - performance condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				602,203
Share-based compensation expense				$ 54,556
Unrecognized compensation expense recognition period (in years)				3 years 4 months 24 days
Non vested unrecognized compensation expense				$ 93,123
Minimum \| Share options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting (in years)				4 years	3 years	3 years
Share options expiration (in years)				8 years
Minimum \| Non-vested shares - service condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting (in years)				1 year	1 year	1 year
Minimum \| Non-vested shares - performance condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting (in years)				1 year
Maximum \| Share options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting (in years)				6 years	4 years	4 years
Share options expiration (in years)				12 years
Maximum \| Non-vested shares - service condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting (in years)				6 years	8 years	13 years
Maximum \| Non-vested shares - performance condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting (in years)				6 years

SUBSEQUENT EVENT (Details) $ in Millions	Apr. 19, 2021 USD ($)
Common Stock \| Subsequent Event
Subsequent Event [Line Items]
Stock Repurchase Program, Authorized Amount	$ 1,000