Alto Ingredients (ALTO) 10-K 15 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Mar. 14, 2018	Jun. 30, 2017
Document And Entity Information
Entity Registrant Name	Pacific Ethanol, Inc.
Entity Central Index Key	778,164
Document Type	10-K
Trading Symbol	PEIX
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 266,300
Entity Common Stock, Shares Outstanding		43,959,245
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 49,489	$ 64,259
Accounts receivable, net of allowance for doubtful accounts of $19 and $331, respectively	80,344	86,275
Inventories	61,550	60,070
Prepaid inventory	3,281	9,946
Income tax receivables	743	5,730
Derivative assets	998	978
Other current assets	6,841	7,943
Total current assets	203,246	235,201
Property and equipment, net	508,352	465,190
Other Assets:
Intangible assets	2,678	2,678
Other assets	6,020	5,169
Total other assets	8,698	7,847
Total Assets	720,296	708,238
Current Liabilities:
Accounts payable - trade	39,738	37,051
Accrued liabilities	21,673	20,280
Current portion - capital leases	592	794
Current portion - long-term debt	20,000	10,500
Derivative liabilities	2,307	4,115
Other current liabilities	6,396	6,101
Total current liabilities	90,706	78,841
Long-term debt, net of current portion	221,091	188,028
Capital leases, net of current portion	123	547
Warrant liabilities at fair value		651
Other liabilities	24,676	21,910
Total Liabilities	336,596	289,977
Commitments and contingencies (Notes 1, 8, 9 and 14)
Stockholders' Equity:
Common stock value	44	40
Additional paid-in capital	927,090	922,698
Accumulated other comprehensive loss	(2,234)	(2,620)
Accumulated deficit	(568,462)	(532,233)
Total Pacific Ethanol, Inc. stockholders' equity	356,439	387,890
Noncontrolling interests	27,261	30,371
Total stockholders' equity	383,700	418,261
Total Liabilities and Stockholders' Equity	720,296	708,238
Series A Preferred Stock
Stockholders' Equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized: Series A: 1,684,375 shares authorized; no shares issued and outstanding as of December 31, 2017 and 2016 Series B: 1,580,790 shares authorized; 926,942 shares issued and outstanding as of December 31, 2017 and 2016; liquidation preference of $18,075 as of December 31, 2017
Series B Preferred Stock
Stockholders' Equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized: Series A: 1,684,375 shares authorized; no shares issued and outstanding as of December 31, 2017 and 2016 Series B: 1,580,790 shares authorized; 926,942 shares issued and outstanding as of December 31, 2017 and 2016; liquidation preference of $18,075 as of December 31, 2017	1	1
Nonvoting Common Stock [Member]
Stockholders' Equity:
Common stock value		$ 4

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accounts receivable, net of allowance	$ 19	$ 331
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	10,000,000	10,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	300,000,000	300,000,000
Common stock, issued	43,984,975	39,772,238
Common stock, outstanding	43,984,975	39,772,238
Series A Preferred Stock
Preferred stock shares authorized	1,684,375	1,684,375
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Series B Preferred Stock
Preferred stock shares authorized	1,580,790	1,580,790
Preferred stock shares issued	926,942	926,942
Preferred stock shares outstanding	926,942	926,942
Preferred stock liquidation preference	$ 18,075
Nonvoting Common Stock [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	3,553,000	3,553,000
Common stock, issued	896	3,540,132
Common stock, outstanding	896	3,540,132

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 1,632,255	$ 1,624,758	$ 1,191,176
Cost of goods sold	1,626,324	1,570,400	1,180,810
Gross profit	5,931	54,358	10,366
Selling, general and administrative expenses	31,516	30,849	26,368
Asset impairment			1,970
Income (loss) from operations	(25,585)	23,509	(17,972)
Fair value adjustments and warrant inducements	473	(557)	1,641
Interest expense	(12,938)	(22,406)	(12,594)
Other income (expense), net	(345)	(1)	18
Income (loss) before provision for income taxes	(38,395)	545	(28,907)
Provision (benefit) for income taxes	(321)	(981)	(10,034)
Consolidated net income (loss)	(38,074)	1,526	(18,873)
Net (income) loss attributed to noncontrolling interests	3,110	(107)	87
Net income (loss) attributed to Pacific Ethanol, Inc.	(34,964)	1,419	(18,786)
Preferred stock dividends	(1,265)	(1,269)	(1,265)
Income allocated to participating securities		(2)
Income (loss) available to common stockholders	$ (36,229)	$ 148	$ (20,051)
Income (loss) per share, basic and diluted	$ (0.85)	$ 0	$ (0.6)
Weighted-average shares outstanding, basic	42,745	42,182	33,173
Weighted-average shares outstanding, diluted	42,745	42,251	33,173

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Consolidated net income (loss)	$ (38,074)	$ 1,526	$ (18,873)
Other comprehensive income (expense) - net gain (loss) arising during the period on defined benefit pension plans	386	(3,660)	1,040
Total comprehensive loss	(37,688)	(2,134)	(17,833)
Comprehensive (income) loss attributed to noncontrolling interests	3,110	(107)	87
Comprehensive loss attributed to Pacific Ethanol, Inc.	$ (34,578)	$ (2,241)	$ (17,746)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]	Total
Balance at Beginning at Dec. 31, 2014	$ 1	$ 25	$ 725,813	$ (512,332)		$ 4,475	$ 217,982
Balance at Beginning (in shares) at Dec. 31, 2014	927	24,499
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense - restricted stock issued to employees and directors, net of cancellations and tax			1,475				1,475
Stock-based compensation expense - restricted stock issued to employees and directors, net of cancellations and tax (in shares)		216
Pension plan adjustment					1,040		(1,040)
Warrant and option exercises			440				440
Warrant and option exercises (in shares)		42
Shares issued in PE Central acquisition		$ 18	174,555				174,573
Shares issued in PE Central acquisition (in shares)		17,758
Purchases of interests in PE Op Co.			560			(4,388)	(3,828)
Preferred stock dividends				(1,265)			1,265
Net loss				(18,786)		(87)	(18,873)
Balance at End at Dec. 31, 2015	$ 1	$ 43	902,843	(532,383)	1,040		371,544
Balance at End (in shares) at Dec. 31, 2015	927	42,515
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense - restricted stock issued to employees and directors, net of cancellations and tax		$ 1	2,281				2,282
Stock-based compensation expense - restricted stock issued to employees and directors, net of cancellations and tax (in shares)		659
Pension plan adjustment					(3,660)		3,660
Warrant and option exercises			1,338				1,338
Warrant and option exercises (in shares)		138
Preferred stock dividends				(1,269)			1,269
Sale of Pacific Aurora interests to ACEC			10,475			19,525	30,000
ACEC contribution to form Pacific Aurora			5,761			10,739	16,500
Net loss				1,419		107	1,526
Balance at End at Dec. 31, 2016	$ 1	$ 44	922,698	(532,233)	(2,620)	30,371	418,261
Balance at End (in shares) at Dec. 31, 2016	927	43,312
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense - restricted stock issued to employees and directors, net of cancellations and tax			3,014				3,014
Stock-based compensation expense - restricted stock issued to employees and directors, net of cancellations and tax (in shares)		473
Pension plan adjustment					386		(386)
Warrant and option exercises			1,378				1,378
Warrant and option exercises (in shares)		201
Preferred stock dividends				(1,265)			1,265
Net loss				(34,964)		(3,110)	(38,074)
Balance at End at Dec. 31, 2017	$ 1	$ 44	$ 927,090	$ (568,462)	$ (2,234)	$ 27,261	$ 383,700
Balance at End (in shares) at Dec. 31, 2017	927	43,986

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Activities:
Consolidated net income (loss)	$ (38,074)	$ 1,526	$ (18,873)
Adjustments to reconcile consolidated net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization of intangibles	38,651	35,441	23,632
Fair value adjustments	(473)	557	(1,641)
Asset impairment			1,970
Deferred income taxes	169	(1,122)	(2,023)
Inventory valuation	2,678		509
Change in fair value on commodity derivative instruments	2,077	1,984	542
Amortization of deferred financing costs	503	137	272
Amortization of debt discounts	636	2,322	716
Noncash compensation	3,828	2,616	2,019
Bad debt expense (recovery)	5	306	(354)
Interest expense added to plant term debt		9,451
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	17,562	(25,235)	(15,950)
Inventories	5,070	750	(13,296)
Prepaid expenses and other assets	2,677	3,189	(1,093)
Prepaid inventory	6,738	(3,973)	5,622
Accounts payable and accrued expenses	(5,538)	9,279	(10,045)
Net cash provided by (used in) operating activities	36,509	37,228	(27,993)
Investing Activities:
Additions to property and equipment	(20,866)	(19,171)	(20,507)
Purchase of ICP, net of cash acquired	(29,574)
Proceeds (payments) for cash collateralized letters of credit		4,574	(4,574)
Net cash from acquisition of PE Central			18,756
Net cash used in investing activities	(50,440)	(14,597)	(6,325)
Financing Activities:
Proceeds from warrant and option exercises	1,202	1,164	368
Proceeds from plant term and revolving credit agreements	42,000	97,000
Proceeds from parent notes	13,530	53,350
Sale of noncontrolling interests		30,000
Proceeds from assessment financing	5,618	2,096
Net proceeds (payments) on Kinergy's line of credit	(385)	(11,141)	43,584
Payments on plant borrowings	(59,927)	(172,073)	(13,833)
Debt issuance costs	(986)	(1,960)
Preferred stock dividend payments	(1,265)	(1,269)	(1,265)
Payments on capital leases	(626)	(7,089)	(5,059)
Net cash provided by (used in) financing activities	(839)	(9,922)	23,795
Net increase (decrease) in cash and cash equivalents	(14,770)	12,709	(10,523)
Cash and cash equivalents at beginning of period	64,259	51,550	62,073
Cash and cash equivalents at end of period	49,489	64,259	51,550
Supplemental Information:
Interest paid	11,133	11,168	11,685
Income tax refunds	5,614	4,784	5,710
Noncash financing and investing activities:
Accrued payment for ownership positions of PE Op Co.			3,828
Capital leases added to plant and equipment	180		1,864
Reclass of warrant liability to equity upon exercises	178	179	72
Contribution of property and equipment for noncontrolling interest (see Note 2)		16,500
Debt issued in ICP acquisition (see Note 2)	46,927
Common stock issued in PE Central acquisition (see Note 2)			$ 174,573

ORGANIZATION AND SIGNIFICANT AC

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES.	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES.	1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES . Organization and Business The Company’s acquisition of Aventine Renewable Energy Holdings, Inc. (now, Pacific Ethanol Central, LLC, a Delaware limited liability company, “PE Central”) was consummated on July 1, 2015, and as a result, the Company’s consolidated financial statements include the results of PE Central only as of and for the years ended December 31, 2017 and 2016 and for the six months ended December 31, 2015. On December 15, 2016, the Company and Aurora Cooperative Elevator Company, a Nebraska cooperative corporation (“ACEC”), closed a transaction under a contribution agreement under which the Company contributed its Aurora, Nebraska ethanol facilities and ACEC contributed its Aurora grain elevator and related grain handling assets to Pacific Aurora, LLC (“Pacific Aurora”) in exchange for equity interests in Pacific Aurora. On December 15, 2016, concurrently with the closing under the contribution agreement, the Company sold a portion of its equity interest in Pacific Aurora to ACEC. As a result, the Company owned 73.93% of Pacific Aurora and ACEC owned 26.07% of Pacific Aurora as of December 31, 2017 and 2016. Further, the Company has consolidated 100% of the results of Pacific Aurora and recorded ACEC’s 26.07% equity interest as noncontrolling interests in the accompanying financial statements for the year ended December 31, 2017 and for the period December 15, 2016 through December 31, 2016. The Company’s acquisition of Illinois Corn Processing, LLC (“ICP”) was consummated on July 3, 2017, and as a result, the Company’s consolidated financial statements include the results of ICP only for the period from July 3, 2017 through December 31, 2017. The Company is a leading producer and marketer of low-carbon renewable fuels in the United States. The Company’s four ethanol plants in the Western United States (together with their respective holding companies, the “Pacific Ethanol West Plants”) are located in close proximity to both feed and ethanol customers and thus enjoy unique advantages in efficiency, logistics and product pricing. These plants produce among the lowest-carbon ethanol produced in the United States due to low energy use in production. With the addition of four Midwestern ethanol plants in July 2015 as a result of the Company’s acquisition of PE Central and the addition of ICP’s plant in July 2017, the Company now has a combined production capacity of 605 million gallons per year, markets, on an annualized basis, nearly 1.0 billion gallons of ethanol and specialty alcohols, and produces, on an annualized basis, over 3.0 million tons of co-products on a dry matter basis, such as wet and dry distillers grains, wet and dry corn gluten feed, condensed distillers solubles, corn gluten meal, corn germ, dried yeast and CO 2 As of December 31, 2017, all nine facilities were operating. As market conditions change, the Company may increase, decrease or idle production at one or more operational facilities or resume operations at any idled facility. Basis of Presentation Segments Segment Reporting Cash and Cash Equivalents Accounts Receivable and Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for balances that appear to have specific collection issues. The collection process is based on the age of the invoice and requires attempted contacts with the customer at specified intervals. If, after a specified number of days, the Company has been unsuccessful in its collection efforts, a bad debt allowance is recorded for the balance in question. Delinquent accounts receivable are charged against the allowance for doubtful accounts once uncollectibility has been determined. The factors considered in reaching this determination are the apparent financial condition of the customer and the Company’s success in contacting and negotiating with the customer. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of ability to make payments, additional allowances may be required. Of the accounts receivable balance, approximately $64,501,000 and $64,853,000 at December 31, 2017 and 2016, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $19,000 and $331,000 as of December 31, 2017 and 2016, respectively. The Company recorded a bad debt expense of $5,000 and $306,000 and a recovery of $354,000 for the years ended December 31, 2017, 2016 and 2015, respectively. The Company does not have any off-balance sheet credit exposure related to its customers. Concentration Risks The Company sells fuel-grade ethanol to gasoline refining and distribution companies. The Company sold ethanol to customers representing 10% or more of the Company’s total net sales, as follows. Years Ended December 31, 2017 2016 2015 Customer A 16 % 17 % 12 % Customer B 11 % 12 % 15 % Customer C 6 % 6 % 12 % The Company had accounts receivable due from these customers totaling $21,584,000 and $21,274,000, representing 27% and 25% of total accounts receivable, as of December 31, 2017 and 2016, respectively. The Company purchases corn, its largest cost component in producing ethanol, from its suppliers. The Company purchased corn from suppliers representing 10% or more of the Company’s total corn purchases, as follows: Years Ended December 31, 2017 2016 2015 Supplier A 14 % 13 % 19 % Supplier B 13 % 4 % — % Supplier C 10 % 8 % 9 % Supplier D 9 % 13 % 13 % Approximately 32% of the Company’s employees are covered by a collective bargaining agreement. Inventories December 31, 2017 2016 Finished goods $ 35,652 $ 33,773 Work in progress 8,807 7,092 Raw materials 7,601 6,571 Low-carbon and RIN credits 7,952 10,926 Other 1,538 1,708 Total $ 61,550 $ 60,070 Property and Equipment Buildings 40 years Facilities and plant equipment 10 – 25 years Other equipment, vehicles and furniture 5 – 10 years The cost of normal maintenance and repairs is charged to operations as incurred. Significant capital expenditures that increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The cost of property and equipment sold, or otherwise disposed of, and the related accumulated depreciation or amortization are removed from the accounts, and any resulting gains or losses are reflected in current operations. Intangible Asset Derivative Instruments and Hedging Activities Revenue Recognition ● As a producer ● As a merchant ● As an agent Revenue from sales of third-party ethanol is recorded net of costs when the Company is acting as an agent between a customer and a supplier and gross when the Company is a principal to the transaction. The Company recorded $1,663,000, $1,604,000 and $1,510,000 in net sales when acting as an agent for the years ended December 31, 2017, 2016 and 2015, respectively. Several factors are considered to determine whether the Company is acting as an agent or principal, most notably whether the Company is the primary obligor to the customer and whether the Company has inventory risk and related risk of loss or whether the Company adds meaningful value to the supplier’s product or service. Consideration is also given to whether the Company has latitude in establishing the sales price or has credit risk, or both. When the Company acts as an agent, it recognizes revenue on a net basis or recognizes its predetermined fees and any associated freight, based upon the amount of net revenues retained in excess of amounts paid to suppliers. The Company records revenues based upon the gross amounts billed to its customers in transactions where the Company acts as a producer or a merchant and obtains title to ethanol and therefore owns the product and any related, unmitigated inventory risk for the ethanol, regardless of whether the Company actually obtains physical control of the product. Shipping and Handling Costs Selling Costs Stock-Based Compensation Impairment of Long-Lived Assets Deferred Financing Costs Provision for Income Taxes The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. Should the Company incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of interest expense and other income (expense), net, respectively. Deferred tax assets and liabilities are classified as noncurrent in the Company’s consolidated balance sheets. The Company files a consolidated federal income tax return. This return includes all wholly-owned subsidiaries as well as the Company’s pro-rata share of taxable income from pass-through entities in which the Company owns less than 100%. State tax returns are filed on a consolidated, combined or separate basis depending on the applicable laws relating to the Company and its subsidiaries. Income (Loss) Per Share The following tables compute basic and diluted earnings per share (in thousands, except per share data): Year Ended December 31, 2017 Loss Shares Per-Share Net loss attributed to Pacific Ethanol $ (34,964 ) Less: Preferred stock dividends (1,265 ) Basic and Diluted loss per share: Loss available to common stockholders $ (36,229 ) 42,745 $ (0.85 ) Year Ended December 31, 2016 Income Shares Per-Share Net income attributed to Pacific Ethanol $ 1,419 Less: Preferred stock dividends (1,269 ) Less: Allocated to participating securities (2 ) Basic income per share: Income available to common stockholders $ 148 42,182 $ 0.00 Add: Options — 69 Diluted income per share: Income available to common stockholders $ 148 42,251 $ 0.00 Year Ended December 31, 2015 Loss Shares Per-Share Net loss attributed to Pacific Ethanol $ (18,786 ) Less: Preferred stock dividends (1,265 ) Basic and Diluted loss per share: Loss available to common stockholders $ (20,051 ) 33,173 $ (0.60 ) There were an aggregate of 719,000, 704,000 and 817,000 potentially dilutive shares from convertible securities outstanding as of December 31, 2017, 2016 and 2015, respectively. These convertible securities were not considered in calculating diluted income (loss) per common share for the years ended December 31, 2017, 2016 and 2015 as their effect would be anti-dilutive. Financial Instruments Employment-related Benefits Estimates and Assumptions Subsequent Events Reclassifications Recent Accounting Pronouncements The provisions of ASC 606 include a five-step process by which an entity will determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which an entity expects to be entitled in exchange for those goods or services. ASC 606 requires the Company to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies the performance obligation. The Company adopted ASC 606 on January 1, 2018. The Company has completed its evaluation of the new requirements under ASC 606 on each of its major revenue types. The Company’s assessment indicates that ASC 606 will not materially change the way the Company accounts for its contracts with its customers, which will continue to be recognized at a point in time, however, will expand certain disclosures of its revenue streams. The Company will adopt the new guidance using the modified retrospective transition method. In February 2016, the FASB issued new guidance on accounting for leases. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted cash flow basis; and (2) a “right of use” asset, which is an asset that represents the lessee’s right to use the specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged, with some minor exceptions. Lessees will no longer be provided with a source of off-balance sheet financing for other than short-term leases. The standard is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company expects that upon adoption of this accounting standard, right of use assets and lease obligations will be recognized in its consolidated balance sheets in amounts that will be material. In April 2016, the FASB issued new guidance to reduce the complexity of certain aspects of accounting for employee share-based payment transactions. Prior to adoption of the standard, accruals of compensation costs were based on an estimated forfeiture rate. The new guidance allows an entity to make an entity-wide accounting policy election to either continue using an estimate of forfeitures or account for forfeitures only when they occur. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Effective January 1, 2017, the Company elected to discontinue the use of an estimated forfeiture rate and instead account for actual forfeitures as they occur. The transition guidance requires an adjustment to retained earnings for any cumulative effect. The impact to the Company upon adoption was determined to be immaterial.

PACIFIC ETHANOL PLANTS.

PACIFIC ETHANOL PLANTS.	12 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
PACIFIC ETHANOL PLANTS.	2. PACIFIC ETHANOL PLANTS. Illinois Corn Processing On July 3, 2017, the Company purchased 100% of the equity interests of ICP from ICP’s owners, Illinois Corn Processing Holdings Inc. (“ICPH”) and MGPI Processing, Inc. (together with ICPH, the “Sellers”). At the closing, ICP became an indirect wholly-owned subsidiary of the Company. Upon closing, the Company (i) paid to the Sellers $30.0 million in cash, and (ii) issued to the Sellers secured promissory notes in the aggregate principal amount of approximately $46.9 million (the “Seller Notes”). The Seller Notes were secured by a first priority lien on ICP’s assets and a pledge of the membership interests of ICP. ICP is a 90 million gallon per year fuel and industrial alcohol manufacturing, storage and distribution facility adjacent to the Company’s facility in Pekin, Illinois and is located on the Illinois River. ICP produces fuel-grade ethanol, beverage and industrial-grade alcohol, dry distillers grain and corn oil. The facility has direct access to end-markets via barge, rail and truck, and expands the Company’s domestic and international distribution channels. ICP is reflected in the results of the Company’s production segment. The Company has recognized the following allocation of the purchase price at fair values. No intangible assets or liabilities have been recognized due to ICP’s contracts being materially close to market prices. The Company’s purchase price consideration allocation is as follows (in thousands): Cash and equivalents $ 426 Accounts receivable 11,636 Inventories 9,227 Other current assets 1,560 Total current assets 22,849 Property and equipment 61,128 Other assets 328 Total assets acquired $ 84,305 Accounts payable, trade $ 5,683 Other current liabilities 1,486 Total current liabilities 7,169 Other non-current liabilities 209 Total liabilities assumed $ 7,378 Net assets acquired $ 76,927 Estimated goodwill $ — Total purchase price $ 76,927 The contractual amount due on the accounts receivable acquired was $11.6 million, all of which is expected to be collectible. The following table presents unaudited pro forma combined financial information assuming the acquisition of ICP occurred on January 1, 2016. Years Ended December 31, 2017 2016 Revenues – pro forma $ 1,710,317 $ 1,802,159 Consolidated net income (loss) – pro forma $ (42,589 ) $ 8,329 Diluted net income (loss) per share – pro forma $ (0.95 ) $ 0.16 Diluted weighted-average shares – pro forma 42,745 42,251 For the year ended December 31, 2017, ICP contributed $75.9 million in net revenues and $3.7 million in pre-tax income. For the year ended December 31, 2017, the Company recorded approximately $0.3 million in costs associated with the ICP acquisition. These costs are reflected in selling, general and administrative expenses on the Company’s consolidated statements of operations. PE Central On July 1, 2015, the Company acquired 100% of PE Central and its plants, through a stock-for-stock merger. The Company issued an aggregate of 17.8 million shares of common stock and non-voting common stock for 100% of the outstanding shares of common stock of PE Central. The common stock and non-voting common stock issued as consideration had an aggregate fair value of $174.6 million, based on the closing market price of the Company’s common stock on the acquisition date. The Company believes the acquisition of PE Central resulted in a number of synergies and strategic advantages. The Company believes the acquisition spread commodity and basis price risks across diverse markets and products, assisting in its efforts to optimize margin management; improved its hedging opportunities with a greater correlation to the liquid physical and paper markets in Chicago; and increased its flexibility and alternatives in feedstock procurement for its Midwestern and Western production facilities. The acquisition also expanded the Company’s marketing reach into new markets and extended its mix of co-products. The Company believes the acquisition enabled it to have deeper market insight and engagement in major ethanol and feed markets outside the Western United States, thereby improving pricing opportunities; allowed the Company to establish access to markets in 48 states for ethanol sales and access many markets with ethanol and co-product sales reaching domestic and international customers; and enabled it to use its more diverse mix of co-products to generate strong co-product returns. The Company recognized the following allocation of the purchase price at fair values. The Company included in the following allocation its estimated fair values for certain operating lease agreements and open commitments. The fair-value determination of long-term debt was based on the interest rate environment at the acquisition date. Based on the final allocation, the Company recorded an immaterial bargain purchase gain on the acquisition. The purchase price consideration allocation is as follows (in thousands): Cash and equivalents $ 18,756 Accounts receivable 10,430 Inventories 29,483 Other current assets 8,304 Total current assets 66,973 Property and equipment 312,781 Net deferred tax assets 12,159 Other assets 750 Total assets acquired $ 392,663 Accounts payable and accrued liabilities $ 27,780 Long-term debt - revolvers 13,721 Long-term debt - term debt 142,744 Pension plan liabilities 8,518 Other non-current liabilities 25,327 Total liabilities assumed $ 218,090 Net assets acquired $ 174,573 The contractual amount due on the accounts receivable acquired was $10.8 million, of which $0.4 million is expected to be uncollectible. In accounting for the acquisition, the Company recorded $3.7 million in other noncurrent liabilities as a litigation contingency related to certain litigation matters for amounts that were probable and estimable as of the acquisition date. Subsequent to the acquisition date, the Company settled for $2.1 million certain litigation for which liabilities were recorded. Certain of these settlements were made after the measurement period, and as such the Company recorded a gain of $1.1 million for the year ended December 31, 2016 in selling, general and administrative expenses in the accompanying consolidated statements of operations. See Note 14 for further details. The following table presents unaudited pro forma financial information for the year ended December 31, 2015, assuming the acquisition occurred on January 1, 2014 (in thousands except per share data). Net sales – pro forma $ 1,484,676 Cost of goods sold – pro forma $ 1,469,512 Selling, general and administrative expenses – pro forma $ 34,735 Net loss – pro forma $ (34,136 ) Diluted net loss per share – pro forma $ (0.81 ) Diluted weighted-average shares – pro forma 42,053 The effects of the initial step-up of inventories and open contracts in the aggregate of $8.7 million recorded during 2015 were excluded in the above amounts for 2015 as if the acquisition had occurred on January 1, 2014. For the six months ended December 31, 2015, PE Central contributed $299.0 million in net sales and $16.3 million in pre-tax loss. For the year ended December 31, 2017, PE Central contributed $610.5 million in net sales and $8.4 million in pre-tax loss. For the year ended December 31, 2016, PE Central contributed $650.1 million in net sales and $2.1 million in pre-tax income. For the year ended December 31, 2015, the Company recorded approximately $1.4 million in costs associated with the PE Central acquisition. These costs are reflected in selling, general and administrative expenses on the Company’s consolidated statements of operations, but were excluded from the amounts above. Pacific Aurora On December 15, 2016, PE Central closed on an agreement with ACEC under which (i) PE Central contributed to Pacific Aurora 100% of the equity interests of its wholly-owned subsidiaries, Pacific Ethanol Aurora East, LLC (“AE”) and Pacific Ethanol Aurora West, LLC (“AW”), which owned the Company’s Aurora East and Aurora West ethanol plants, respectively, in exchange for an 88.15% ownership interest in Pacific Aurora, and (ii) ACEC contributed to Pacific Aurora its grain elevator adjacent to the Aurora East and Aurora West properties and related grain handling assets, including the outer rail loop and the real property on which they are located, in exchange for an 11.85% ownership interest in Pacific Aurora. On December 15, 2016, concurrent with the closing of the contribution transaction, PE Central sold a 14.22% ownership interest in Pacific Aurora to ACEC for $30.0 million in cash. Following the closing of these transactions, PE Central owned 73.93% of Pacific Aurora and ACEC owned 26.07% of Pacific Aurora. The Company has consolidated 100% of the results of Pacific Aurora and recorded the amount attributed to ACEC as noncontrolling interests under the voting rights model. Since the Company had control of AE and AW prior to forming Pacific Aurora, there was no gain or loss recorded on the contribution and ultimate sale of a portion of the Company’s interests in Pacific Aurora. ACEC contributed $16.5 million in assets at fair market value and paid $30.0 million in cash for its additional ownership interests. A noncontrolling interest was recognized to reflect ACEC’s proportional ownership interest multiplied by the book value of Pacific Aurora’s net assets. As a result, the Company recorded $16.2 million as additional paid-in capital attributed to the difference between Pacific Aurora’s book value and the contribution and sale. On December 15, 2016, the Company entered into a working capital maintenance agreement with Pacific Aurora’s lender, under which the Company agreed to contribute capital to Pacific Aurora from time to time, if needed, in an amount up to $15.0 million to ensure that Pacific Aurora maintains the minimum working capital thresholds required in its credit agreement as further discussed in Note 9. In addition, dividends from Pacific Aurora to its members are limited to 40% of Pacific Aurora’s annual net income. The carrying values and classification of assets and liabilities of Pacific Aurora as of December 31, 2016 were as follows (in thousands): Cash and equivalents $ 1,453 Accounts receivable 16,804 Inventories 3,837 Other current assets 77 Total current assets 22,171 Property and equipment 115,759 Other assets 1,387 Total assets $ 139,317 Accounts payable and accrued liabilities $ 20,152 Other current liabilities 2,045 Long-term debt outstanding, net 621 Total liabilities $ 22,818 PE OP Co. Prior to May 2015, the Company held a 96% ownership in PE Op Co. In May 2015, it purchased the remaining 4% ownership interest in PE Op Co. for $6.0 million in cash, bringing its ownership of PE Op Co. to 100%. Because the Company had a controlling financial interest in PE Op Co. at the time of this purchase, it did not record any gains or losses, but instead reduced the amount of noncontrolling interest on the consolidated balance sheets by an aggregate of $4.4 million and recorded the difference of $0.6 million and for the year ended December 31, 2015, which represented the fair value of this purchase above the price paid by the Company, to additional paid-in capital on the consolidated balance sheet.

INTERCOMPANY AGREEMENTS.

INTERCOMPANY AGREEMENTS.	12 Months Ended
	Dec. 31, 2017
Intercompany Agreements
INTERCOMPANY AGREEMENTS.	3. INTERCOMPANY AGREEMENTS. The Company, directly or through one of its subsidiaries, has entered into the following management and marketing agreements: Affiliate Management Agreement The AMAs have an initial term of one year and automatic successive one year renewal periods. Pacific Ethanol may terminate the AMA, and any subsidiary may terminate the AMA, at any time by providing at least 90 days prior notice of such termination. Pacific Ethanol recorded revenues of approximately $11,904,000, $12,968,000 and $9,857,000 related to the AMAs in place for the years ended December 31, 2017, 2016 and 2015, respectively. These amounts have been eliminated upon consolidation. Ethanol Marketing Agreements Kinergy recorded revenues of approximately $8,464,000, $8,029,000 and $5,262,000 related to the ethanol marketing agreements for the years ended December 31, 2017, 2016 and 2015, respectively. These amounts have been eliminated upon consolidation. Corn Procurement and Handling Agreements Under these agreements, PAP receives a fee of $0.045 per bushel of corn delivered to each facility as consideration for its procurement and handling services, payable monthly. Effective December 15, 2016, this fee is $0.03 per bushel of corn. Each corn procurement and handling agreement had an initial term of one year and successive one year renewal periods at the option of the individual plant. PAP recorded revenues of approximately $4,245,000, $4,386,000 and $2,910,000 related to the corn procurement and handling agreements for the years ended December 31, 2017, 2016 and 2015, respectively. These amounts have been eliminated upon consolidation. Effective December 15, 2016, each Pacific Aurora facility entered into a new grain procurement agreement with ACEC. Under this agreement, ACEC receives a fee of $0.03 per bushel of corn delivered to each facility as consideration for its procurement and handling services, payable monthly. The grain procurement agreement has an initial term of one year and successive one year renewal periods at the option of the individual plant. Pacific Aurora recorded expenses of approximately $816,000 and $107,000 for the year ended December 31, 2017 and the period from December 15, 2016 to December 31, 2016, respectively. These amounts have not been eliminated upon consolidation as they are with a related but unconsolidated third-party. Distillers Grains Marketing Agreements PAP recorded revenues of approximately $6,020,000, $6,047,000 and $4,438,000 related to the distillers grains marketing agreements for the years ended December 31, 2017, 2016 and 2015, respectively. These amounts have been eliminated upon consolidation.

SEGMENTS.

SEGMENTS.	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
SEGMENTS.	4. SEGMENTS. The Company reports its financial and operating performance in two segments: (1) ethanol production, which includes the production and sale of ethanol, specialty alcohols and co-products, with all of the Company’s production facilities aggregated, and (2) marketing and distribution, which includes marketing and merchant trading for Company-produced ethanol, specialty alcohols and co-products and third-party ethanol. Income before provision for income taxes includes management fees charged by Pacific Ethanol to the segment. The production segment incurred $9,744,000, $9,968,000 and $5,957,000 in management fees for the years ended December 31, 2017, 2016 and 2015, respectively. The marketing and distribution segment incurred $2,160,000, $3,000,000 and $3,900,000 in management fees for the years ended December 31, 2017, 2016 and 2015, respectively. Corporate activities include selling, general and administrative expenses, consisting primarily of corporate employee compensation, professional fees and overhead costs not directly related to a specific operating segment. During the normal course of business, the segments do business with each other. The preponderance of this activity occurs when the Company’s marketing segment markets ethanol produced by the production segment for a marketing fee, as discussed in Note 3. These intersegment activities are considered arms’-length transactions. Consequently, although these transactions impact segment performance, they do not impact the Company’s consolidated results since all revenues and corresponding costs are eliminated in consolidation. Capital expenditures are substantially all incurred at the Company’s production segment. The following tables set forth certain financial data for the Company’s operating segments (in thousands): Years Ended December 31, 2017 2016 2015 Net Sales Production: Net sales to external customers $ 1,102,722 $ 1,045,807 $ 710,201 Intersegment net sales 1,898 1,169 — Total production segment net sales 1,104,620 1,046,976 710,201 Marketing and distribution: Net sales to external customers 529,533 578,951 480,975 Intersegment net sales 8,464 8,029 5,262 Total marketing and distribution net sales 537,997 586,980 486,237 Intersegment eliminations (10,362 ) (9,198 ) (5,262 ) Net sales as reported $ 1,632,255 $ 1,624,758 $ 1,191,176 Cost of goods sold: Production $ 1,098,977 $ 1,015,655 $ 716,877 Marketing and distribution 535,032 575,921 476,410 Intersegment eliminations (7,685 ) (21,176 ) (12,477 ) Cost of goods sold as reported $ 1,626,324 $ 1,570,400 $ 1,180,810 Income (loss) before provision for income taxes: Production $ (27,458 ) $ (6,882 ) $ (32,723 ) Marketing and distribution (2,463 ) 4,517 3,200 Corporate activities (8,474 ) 2,910 616 $ (38,395 ) $ 545 $ (28,907 ) Depreciation and amortization: Production $ 37,637 $ 34,528 $ 23,091 Marketing and distribution — 3 151 Corporate activities 1,014 910 390 $ 38,651 $ 35,441 $ 23,632 Interest expense: Production $ 5,887 $ 20,794 $ 11,969 Marketing and distribution 1,271 1,404 625 Corporate activities 5,780 208 — $ 12,938 $ 22,406 $ 12,594 The following table sets forth the Company’s total assets by operating segment (in thousands): December 31, 2017 2016 Total assets: Production $ 583,696 $ 542,688 Marketing and distribution 127,242 146,356 Corporate assets 9,358 19,194 $ 720,296 $ 708,238

PROPERTY AND EQUIPMENT.

PROPERTY AND EQUIPMENT.	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT.	5. PROPERTY AND EQUIPMENT. Property and equipment consisted of the following (in thousands): December 31, 2017 2016 Facilities and plant equipment $ 601,156 $ 530,735 Land 8,970 7,771 Other equipment, vehicles and furniture 10,189 9,714 Construction in progress 38,041 29,393 658,356 577,613 Accumulated depreciation (150,004 ) (112,423 ) $ 508,352 $ 465,190 Depreciation expense was $38,651,000, $35,441,000 and $23,632,000 for the years ended December 31, 2017, 2016 and 2015, respectively. For the year ended December 31, 2015, the Company recorded an impairment charge of $1,970,000 related to the abandonment of certain accounting and information technology systems following the integration of its PE Central facilities. For the year ended December 31, 2017 and 2016, the Company capitalized interest of $822,000 and $1,307,000, respectively, related to its capital investment activities.

INTANGIBLE ASSETS.

INTANGIBLE ASSETS.	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS.	6. INTANGIBLE ASSET. The Company recorded a tradename valued at $2,678,000 in 2006 as part of its acquisition of Kinergy. The Company determined that the Kinergy tradename has an indefinite life and, therefore, rather than being amortized, will be tested annually for impairment. The Company did not record any impairment of the Kinergy tradename for the years ended December 31, 2017, 2016 and 2015.

DERIVATIVES.

DERIVATIVES.	12 Months Ended
	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES.	7. DERIVATIVES. The business and activities of the Company expose it to a variety of market risks, including risks related to changes in commodity prices. The Company monitors and manages these financial exposures as an integral part of its risk management program. This program recognizes the unpredictability of financial markets and seeks to reduce the potentially adverse effects that market volatility could have on operating results. Commodity Risk – Cash Flow Hedges Commodity Risk – Non-Designated Hedges Non Designated Derivative Instruments As of December 31, 2017 Assets Liabilities Type of Instrument Balance Sheet Location Fair Balance Sheet Location Fair Cash collateral balance Other current assets $ 3,813 Commodity contracts Derivative assets $ 998 Derivative liabilities $ 2,307 As of December 31, 2016 Assets Liabilities Type of Instrument Balance Sheet Location Fair Balance Sheet Location Fair Cash collateral balance Other current assets $ 4,331 Commodity contracts Derivative assets $ 978 Derivative liabilities $ 4,115 The above amounts represent the gross balances of the contracts, however, the Company does have the right of offset with each of its derivative brokers. The classification and amounts of the Company’s recognized gains (losses) for its derivatives not designated as hedging instruments are as follows (in thousands): Realized Gains (Losses) For the Years Ended December 31, Type of Instrument Statements of Operations Location 2017 2016 2015 Commodity contracts Cost of goods sold $ (4,165 ) $ 1,386 $ (338 ) $ (4,165 ) $ 1,386 $ (338 ) Unrealized Gains (Losses) For the Years Ended December 31, Type of Instrument Statements of Operations Location 2017 2016 2015 Commodity contracts Cost of goods sold $ 2,088 $ (3,370 ) $ (204 ) $ 2,088 $ (3,370 ) $ (204 )

DEBT.

DEBT.	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
DEBT.	8. DEBT. Long-term borrowings are summarized as follows (in thousands): December 31, December 31, Kinergy line of credit $ 49,477 $ 49,862 Pekin term loan 53,500 64,000 Pekin revolving loan 32,000 32,000 ICP term loan 22,500 — ICP revolving loan 18,000 — Pacific Aurora line of credit — 1,000 Parent notes payable 68,948 55,000 244,425 201,862 Less unamortized debt discount (1,409 ) (1,626 ) Less unamortized debt financing costs (1,925 ) (1,708 ) Less short-term portion (20,000 ) (10,500 ) Long-term debt $ 221,091 $ 188,028 Kinergy Line of Credit The credit facility also includes the accounts receivable of PAP as additional collateral. Payments that may be made by PAP to the Company as reimbursement for management and other services provided by the Company to PAP are limited under the terms of the credit facility to $500,000 per fiscal quarter. If Kinergy and PAP’s monthly excess borrowing availability falls below certain thresholds, they are collectively required to maintain a fixed-charge coverage ratio (calculated as a twelve-month rolling EBITDA divided by the sum of interest expense, capital expenditures, principal payments of indebtedness, indebtedness from capital leases and taxes paid during such twelve-month rolling period) of at least 2.0 and are prohibited from incurring certain additional indebtedness (other than specific intercompany indebtedness). Kinergy and PAP’s obligations under the credit facility are secured by a first-priority security interest in all of their assets in favor of the lender. Pacific Ethanol has guaranteed all of Kinergy’s obligations under the line of credit. As of December 31, 2017, Kinergy had an available unused availability under the credit facility of $27,399,000. Pekin Credit Facilities st st On August 7, 2017, Pekin amended its term and revolving credit facilities by agreeing to increase the interest rate under the facilities by 25 basis points to an annual rate equal to the 30-day LIBOR plus 4.00%. Pekin and its lender also agreed that Pekin is required to maintain working capital of not less than $17.5 million from August 31, 2017 through December 31, 2017 and working capital of not less than $20.0 million from January 1, 2018 and continuing at all times thereafter. In addition, the required Debt Service Coverage Ratio was reduced to 0.15 to 1.00 for the fiscal year ending December 31, 2017. For the month ended January 31, 2018, Pekin was not in compliance with its working capital requirement due to larger than anticipated repair and maintenance related expenses to replace faulty equipment. Pekin has received a waiver from its lender for this noncompliance. Further, the lender decreased Pekin’s working capital covenant requirement to be $13.0 million for the month ended February 28, 2018, excluding the $3.5 million principal payment due in May 2018 from the calculation. As of the filing of this report, management believes Pekin is in compliance with its working capital requirement. ICP Credit Facilities Under the terms of the credit facilities, ICP is required to maintain working capital of not less than $8.0 million. In addition, ICP is required to maintain an annual debt service coverage ratio of not less than 1.50 to 1.00 beginning for the year ending December 31, 2018. Pacific Aurora Line of Credit On September 1, 2017, Pacific Aurora and its lender agreed that Pacific Aurora is required to maintain working capital of not less than $18.0 million from September 30, 2017 through February 28, 2018 and working capital of not less than $20.0 million from March 1, 2018 and continuing at all times thereafter. In addition, the required Debt Service Coverage Ratio was reduced to 0.00 to 1.00 for the fiscal year ending December 31, 2017 and 1.50 to 1.00 for the fiscal year ending December 31, 2018. At December 31, 2017, Pacific Aurora was not in compliance with its working capital and Debt Service Coverage Ratio requirements. The Company did not utilize the credit facility in 2017 and has no plans to draw on the facility at this time, having addressed the liquidity and capital needs of Pacific Aurora through other means. Consequently, the Company is in discussions with its lender to either amend the credit facility or terminate it. Pacific Ethanol, Inc. Notes Payable The Notes mature on December 15, 2019 (the “Maturity Date”). Interest on the Notes accrues at a rate equal to (i) the greater of 1% and the three-month LIBOR, plus 7.0% from the closing through December 14, 2017, (ii) the greater of 1% and LIBOR, plus 9% between December 15, 2017 and December 14, 2018, and (iii) the greater of 1% and LIBOR plus 11% between December 15, 2018 and the Maturity Date. The interest rate increases by an additional 2% per annum above the interest rate otherwise applicable upon the occurrence and during the continuance of an event of default until such event of default has been cured. Interest is payable in cash on the 15th calendar day of each March, June, September and December. Pacific Ethanol is required to pay all outstanding principal and any accrued and unpaid interest on the Notes on the Maturity Date. Pacific Ethanol may, at its option, prepay the outstanding principal amount of the Notes at any time without premium or penalty. The Notes contain a variety of events of default. The payments due under the Notes rank senior to all other indebtedness of Pacific Ethanol, other than permitted senior indebtedness. The Notes contain a variety of obligations on the part of Pacific Ethanol not to engage in certain activities, including that (i) Pacific Ethanol and certain of its subsidiaries will not incur other indebtedness, except for certain permitted indebtedness, (ii) Pacific Ethanol and certain of its subsidiaries will not redeem, repurchase or pay any dividend or distribution on their respective capital stock without the prior consent of the holders of the Notes holding 66-2/3% of the aggregate principal amount of the Notes, other than certain permitted distributions, (iii) Pacific Ethanol and certain of its subsidiaries will not sell, lease, assign, transfer or otherwise dispose of any assets of Pacific Ethanol or any such subsidiary, except for certain permitted dispositions (including the sales of inventory or receivables in the ordinary course of business), and (iv) Pacific Ethanol and certain of its subsidiaries will not issue any capital stock or membership interests for any purpose other than to pay down a portion of all of the amounts owed under the Notes and in connection with Pacific Ethanol’s stock incentive plans. The Notes are secured by a first-priority security interest in the equity interest held by Pacific Ethanol in its wholly-owned subsidiary, PE Op. Co., which indirectly owns the Company’s plants located on the West Coast. Pacific Ethanol West Plants’ Term Debt Pacific Ethanol Central Plants’ Term Debt Interest on the term loan facility accrued and could either be paid in cash at a rate of 10.5% per annum or paid in-kind at a rate of 15.0% per annum by adding such interest to the outstanding principal balance. The Company paid interest in cash for the period from July 1, 2015, the effective date of the PE Central acquisition, through December 31, 2015. During the year ended December 31, 2016, the Company elected to pay in-kind an aggregate of $9,451,000 of interest, which was added to the principal balance. As of December 15, 2016, the principal balance was $155,070,205. On December 15, 2016, the Company paid in full the outstanding principal balance and all accrued and unpaid interest. The Company did not pay any prepayment penalties. The Company fully amortized the remaining unamortized debt discount of $1,152,000 and recorded the amount in interest expense for the year ended December 31, 2016. Maturities of Long-term Debt December 31: 2018 $ 20,000 2019 88,948 2020 20,000 2021 16,000 2022 99,477 $ 244,425

PENSION PLANS.

PENSION PLANS.	12 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
PENSION PLANS.	9. PENSION PLANS. Retirement Plan Information related to the Retirement Plan as of and for the years ended December 31, 2017, 2016 and 2015 is presented below (dollars in thousands): 2017 2016 2015 Changes in plan assets: Fair value of plan assets, beginning $ 12,423 $ 12,567 $ 13,180 Actual gains (losses) 1,722 523 (298 ) Benefits paid (665 ) (667 ) (315 ) Company contributions 478 — — Participant contributions — — — Fair value of plan assets, ending $ 13,958 $ 12,423 $ 12,567 Less: projected accumulated benefit obligation $ 19,658 $ 18,455 $ 16,552 Funded status, (underfunded)/overfunded $ (5,700 ) $ (6,032 ) $ (3,985 ) Amounts recognized in the consolidated balance sheets: Other liabilities $ (5,700 ) $ (6,032 ) $ (3,985 ) Accumulated other comprehensive loss (income) $ 726 $ 1,047 $ (885 ) Components of net periodic benefit costs are as follows: Service cost $ 391 $ 223 $ 211 Interest cost 750 686 338 Expected return on plan assets (674 ) (794 ) (500 ) Net periodic benefit cost $ 467 $ 115 $ 49 Loss (gain) recognized in other comprehensive income (expense) $ (321 ) $ 1,932 $ (885 ) Assumptions used in computation benefit obligations: Discount rate 3.60 % 4.15 % 4.23 % Expected long-term return on plan assets 6.00 % 6.75 % 7.75 % Rate of compensation increase — — — The Company expects to make contributions in the year ending December 31, 2018 of approximately $1.0 million. Net periodic benefit cost for 2018 is estimated at approximately $0.3 million. The following table summarizes the expected benefit payments for the Company’s plan for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter (in thousands): December 31: 2018 $ 730 2019 740 2020 780 2021 790 2022 830 2023-27 4,820 $ 8,690 See Note 15 for discussion of the plan’s fair value disclosures. Historical and future expected returns of multiple asset classes were analyzed to develop a risk-free real rate of return and risk premiums for each asset class. The overall rate for each asset class was developed by combining a long-term inflation component, the risk-free real rate of return, and the associated risk premium. A weighted average rate was developed based on those overall rates and the target asset allocation of the plan. The Company’s pension committee is responsible for overseeing the investment of pension plan assets. The pension committee is responsible for determining and monitoring the appropriate asset allocations and for selecting or replacing investment managers, trustees, and custodians. The pension plan’s current investment target allocations are 50% equities and 50% debt. The pension committee reviews the actual asset allocation in light of these targets periodically and rebalances investments as necessary. The pension committee also evaluates the performance of investment managers as compared to the performance of specified benchmarks and peers and monitors the investment managers to ensure adherence to their stated investment style and to the plan’s investment guidelines. Postretirement Plan Information related to the Postretirement Plan as of December 31, 2017 and 2016 is presented below (dollars in thousands): 2017 2016 Amounts at the end of the year: Accumulated/projected benefit obligation $ 5,565 $ 5,371 Fair value of plan assets — — Funded status, (underfunded)/overfunded $ (5,565 ) $ (5,371 ) Amounts recognized in the consolidated balance sheets: Accrued liabilities $ (240 ) $ (310 ) Other liabilities $ (5,325 ) $ (5,061 ) Accumulated other comprehensive loss $ 1,508 $ 1,573 Information related to the Postretirement Plan for the years ended December 31, 2017, 2016 and 2015 is presented below (dollars in thousands): Years Ended December 31, 2017 2016 2015 Amounts recognized in the plan for the year: Company contributions $ 157 $ 163 $ 20 Participant contributions $ 22 $ 22 $ 15 Benefits paid $ (179 ) $ (184 ) $ (35 ) Components of net periodic benefit costs are as follows: Service cost $ 84 $ 48 $ 32 Interest cost 198 139 65 Amortization of prior service costs 134 — — Net periodic benefit cost $ 416 $ 187 $ 97 Loss (gain) recognized in other comprehensive income $ (65 ) $ 1,728 $ (155 ) Discount rate used in computation of benefit obligations 3.80 % 3.95 % 3.67 % The Company does not expect to recognize any amortization of net actuarial loss during the year ended December 31, 2018. The following table summarizes the expected benefit payments for the Company’s plan for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter (in thousands): December 31: 2018 $ 240 2019 270 2020 300 2021 340 2022 330 2023-27 2,120 $ 3,600 For purposes of determining the cost and obligation for pre-Medicare postretirement medical benefits, a 7.0% annual rate of increase in the per capita cost of covered benefits (i.e., health care trend rate) was assumed for the plan in 2018, adjusting to a rate of 4.5% in 2026. Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans.

INCOME TAXES.

INCOME TAXES.	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES.	10. INCOME TAXES. The Company recorded a provision (benefit) for income taxes as follows (in thousands): Years Ended December 31, 2017 2016 2015 Current provision (benefit) $ (490 ) $ 141 $ (8,011 ) Deferred provision (benefit) 169 (1,122 ) (2,023 ) Total $ (321 ) $ (981 ) $ (10,034 ) A reconciliation of the differences between the United States statutory federal income tax rate and the effective tax rate as provided in the consolidated statements of operations is as follows: Years Ended December 31, 2017 2016 2015 Statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 4.0 6.4 9.2 Change in valuation allowance (34.5 ) (298.8 ) (4.2 ) Impact of Federal tax rate change on deferreds (28.4 ) — — Impact of Federal tax rate change on valuation allowance 29.4 — — Fair value adjustments and warrant inducements 0.4 37.2 2.0 Noncontrolling interests (3.2 ) — — Domestic production gross receipts deduction — — (2.9 ) Section 382 reduction to loss carryover — — 0.1 Stock compensation (0.1 ) 58.8 (0.8 ) Non-deductible items (0.2 ) 8.9 (0.5 ) Other (1.6 ) (27.5 ) (3.2 ) Effective rate 0.8 % (180.0 )% 34.7 % Deferred income taxes are provided using the asset and liability method to reflect temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using presently enacted tax rates and laws. The components of deferred income taxes included in the consolidated balance sheets were as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 40,989 $ 45,709 R&D and AMT credits 1,797 2,465 Railcar contracts 1,415 3,348 Stock-based compensation 738 946 Allowance for doubtful accounts and other assets 637 856 Derivatives 267 1,228 Pension liability 2,939 2,204 Other 2,097 4,316 Total deferred tax assets 50,879 61,072 Deferred tax liabilities: Property and equipment (25,194 ) (45,757 ) Intangibles (749 ) (1,091 ) Other (521 ) (1,593 ) Total deferred tax liabilities (26,464 ) (48,441 ) Valuation allowance (24,639 ) (12,683 ) Net deferred tax liabilities, included in other liabilities $ (224 ) $ (52 ) A portion of the Company’s net operating loss carryforwards will be subject to provisions of the tax law that limit the use of losses incurred by a company prior to the date certain ownership changes occur. Due to the limitation, a significant portion of these net operating loss carryforwards will expire regardless of whether the Company generates future taxable income. After reducing these net operating loss carryforwards for the amount which will expire due to this limitation, the Company had remaining federal net operating loss carryforwards of approximately $154,589,000 and state net operating loss carryforwards of approximately $148,921,000 at December 31, 2017. These net operating loss carryforwards expire as follows (in thousands): Tax Years Federal State 2018–2022 $ — $ — 2023–2027 13,038 2,945 2028–2032 22,025 65,921 2033–2036 119,526 80,055 $ 154,589 $ 148,921 Certain of these net operating losses are not immediately available, but become available to be utilized in each of the years ended December 31, as follows (in thousands): Year Federal State 2017 $ 59,675 $ 82,892 2018 6,441 5,372 2019 6,374 5,345 2020 6,308 5,318 2021 6,308 5,318 Thereafter 69,483 44,676 $ 154,589 $ 148,921 To the extent amounts are not utilized in any year, they may be carried forward to the next year until expiration. These amounts may change if there are future additional limitations on their utilization. In assessing whether the deferred tax assets are realizable, a more likely than not standard is applied. If it is determined that it is more likely than not that deferred tax assets will not be realized, a valuation allowance must be established against the deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the associated temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance was established in the amount of $22,585,000, $12,683,000 and $39,838,000 at December 31, 2017, 2016 and 2015, respectively, based on the Company’s assessment of the future realizability of certain deferred tax assets. The valuation allowance on deferred tax assets is related to future deductible temporary differences and net operating loss carryforwards (exclusive of net operating losses associated with items recorded directly to equity) for which the Company has concluded it is more likely than not that these items will not be realized in the ordinary course of operations. For the year ended December 31, 2017, the Company recorded an increase in the valuation allowance of $11,956,000. This increase was primarily the offsetting impact of a decrease in deferred tax liabilities associated with property and equipment, as a result of the finalization of the deferred tax attributes of Pacific Aurora, which was subject to a 2016 sale of a noncontrolling interest. For the year ended December 31, 2016, the Company recorded a decrease in the valuation allowance of $27,155,000, including approximately $13,500,000 related to finalizing, certain aspects of the deferred tax attributes of the 2015 PE Central acquisition, and approximately $11,500,000 related to the sale of the noncontrolling interest in Pacific Aurora, which had the impact of an increase in both the net deferred tax asset and related valuation allowance. For the year ended December 31, 2015, the Company recognized $1,500,000 in tax benefit related to adjustments to its tax asset valuation allowance from a prior year. At December 31, 2017, the Company accrued $235,000 in tax uncertainties. There was no accrued interest or penalties relating to tax uncertainties at December 31, 2016. The Tax Cuts and Jobs Act (“TCJA”) was enacted on December 22, 2017. The Company recognized the income tax effects of the TCJA in its 2017 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes Amounts recorded where accounting is complete principally relate to the reduction in the U.S. corporate income tax rate to 21%, which resulted in the Company reporting an income tax benefit of $321,000 to remeasure deferred taxes liabilities associated with indefinitely lived intangible assets that will reverse at the new 21% rate. This rate reduction decreased gross deferred assets by approximately $10,170,000 and valuation allowance by $10,545,000. Absent this deferred tax liability, the Company is in a net deferred tax asset position that is offset by a full valuation allowance, resulting in a net tax effect of zero. Other significant provisions of the TCJA that are not yet effective but may impact income taxes in future years include: additional limitations on certain meals and entertainment expenses, the inclusion of commissions and performance-based compensation in determining the excessive compensation limitation, limitation on the current deductibility of net interest expense in excess of 30% of adjusted taxable income, and a limitation of net operating losses generated after fiscal 2018 to 80% of taxable income. The Company is subject to income tax in the United States federal jurisdiction and various state jurisdictions and has identified its federal tax return and tax returns in state jurisdictions below as “major” tax filings. These jurisdictions, along with the years still open to audit under the applicable statutes of limitation, are as follows: Jurisdiction Tax Years Federal 2014 – 2016 Arizona 2014 – 2016 California 2013 – 2016 Colorado 2013 – 2016 Idaho 2014 – 2016 Illinois 2014 – 2016 Indiana 2014 – 2016 Iowa 2014 – 2016 Kansas 2014 – 2016 Minnesota 2014 – 2016 Missouri 2014 – 2016 Nebraska 2014 – 2016 Oklahoma 2014 – 2016 Oregon 2014 – 2016 Texas 2013 – 2016 However, because the Company had net operating losses and credits carried forward in several of the jurisdictions, including the United States federal and California jurisdictions, certain items attributable to closed tax years are still subject to adjustment by applicable taxing authorities through an adjustment to tax attributes carried forward to open years.

PREFERRED STOCK.

PREFERRED STOCK.	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
PREFERRED STOCK.	11. PREFERRED STOCK. The Company has 6,734,835 undesignated shares of authorized and unissued preferred stock, which may be designated and issued in the future on the authority of the Company’s Board of Directors. As of December 31, 2017, the Company had the following designated preferred stock: Series A Preferred Stock Upon any issuance, the Series A Preferred Stock would rank senior in liquidation and dividend preferences to the Company’s common stock. Holders of Series A Preferred Stock would be entitled to quarterly cumulative dividends payable in arrears in cash in an amount equal to 5% per annum of the purchase price per share of the Series A Preferred Stock. The holders of the Series A Preferred Stock would have conversion rights initially equivalent to two shares of common stock for each share of Series A Preferred Stock, subject to customary antidilution adjustments. Certain specified issuances will not result in antidilution adjustments. The shares of Series A Preferred Stock would also be subject to forced conversion upon the occurrence of a transaction that would result in an internal rate of return to the holders of the Series A Preferred Stock of 25% or more. Accrued but unpaid dividends on the Series A Preferred Stock are to be paid in cash upon any conversion of the Series A Preferred Stock. The holders of Series A Preferred Stock would have a liquidation preference over the holders of the Company’s common stock equivalent to the purchase price per share of the Series A Preferred Stock plus any accrued and unpaid dividends on the Series A Preferred Stock. A liquidation would be deemed to occur upon the happening of customary events, including transfer of all or substantially all of the Company’s capital stock or assets or a merger, consolidation, share exchange, reorganization or other transaction or series of related transactions, unless holders of 66 2/3% of the Series A Preferred Stock vote affirmatively in favor of or otherwise consent to such transaction. Series B Preferred Stock The Series B Preferred Stock ranks senior in liquidation and dividend preferences to the Company’s common stock. Holders of Series B Preferred Stock are entitled to quarterly cumulative dividends payable in arrears in cash in an amount equal to 7.00% per annum of the purchase price per share of the Series B Preferred Stock; however, subject to the provisions of the Letter Agreement described below, such dividends may, at the option of the Company, be paid in additional shares of Series B Preferred Stock based initially on the liquidation value of the Series B Preferred Stock. In addition to the quarterly cumulative dividends, holders of the Series B Preferred Stock are entitled to participate in any common stock dividends declared by the Company to its common stockholders. The holders of Series B Preferred Stock have a liquidation preference over the holders of the Company’s common stock initially equivalent to $19.50 per share of the Series B Preferred Stock plus any accrued and unpaid dividends on the Series B Preferred Stock. A liquidation will be deemed to occur upon the happening of customary events, including the transfer of all or substantially all of the capital stock or assets of the Company or a merger, consolidation, share exchange, reorganization or other transaction or series of related transaction, unless holders of 66 2/3% of the Series B Preferred Stock vote affirmatively in favor of or otherwise consent that such transaction shall not be treated as a liquidation. The Company believes that such liquidation events are within its control and therefore has classified the Series B Preferred Stock in stockholders’ equity . As of December 31, 2017, the Series B Preferred Stock was convertible into 634,641 shares of the Company’s common stock. The conversion ratio is subject to customary antidilution adjustments. In addition, antidilution adjustments are to occur in the event that the Company issues equity securities, including derivative securities convertible into equity securities (on an as-converted or as-exercised basis), at a price less than the conversion price then in effect. The shares of Series B Preferred Stock are also subject to forced conversion upon the occurrence of a transaction that would result in an internal rate of return to the holders of the Series B Preferred Stock of 25% or more. The forced conversion is to be based upon the conversion ratio as last adjusted. Accrued but unpaid dividends on the Series B Preferred Stock are to be paid in cash upon any conversion of the Series B Preferred Stock. The holders of Series B Preferred Stock vote together as a single class with the holders of the Company’s common stock on all actions to be taken by the Company’s stockholders. Each share of Series B Preferred Stock entitles the holder to approximately 0.03 votes per share on all matters to be voted on by the stockholders of the Company. Notwithstanding the foregoing, the holders of Series B Preferred Stock are afforded numerous customary protective provisions with respect to certain actions that may only be approved by holders of a majority of the shares of Series B Preferred Stock. In 2008, the Company entered into Letter Agreements with Lyles United LLC (“Lyles United”) and other purchasers under which the Company expressly waived its rights under the Certificate of Designations relating to the Series B Preferred Stock to make dividend payments in additional shares of Series B Preferred Stock in lieu of cash dividend payments without the prior written consent of Lyles United and the other purchasers. Registration Rights Agreement The Company accrued and paid in cash preferred stock dividends of $1,265,000, $1,269,000 and $1,265,000 for the years ended December 31, 2017, 2016 and 2015, respectively.

COMMON STOCK AND WARRANTS.

COMMON STOCK AND WARRANTS.	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
COMMON STOCK AND WARRANTS.	12. COMMON STOCK AND WARRANTS. The following table summarizes warrant activity for the years ended December 31, 2017, 2016 and 2015 (number of shares in thousands): Number of Price per Weighted Balance at December 31, 2014 856 $6.09 – $735.00 $ 36.55 Warrants exercised (42 ) $8.85 $ 8.85 Warrants expired (432 ) $8.85 $ 8.85 Balance at December 31, 2015 382 $6.09 – $735.00 $ 70.87 Warrants exercised (138 ) $8.43 $ 8.43 Balance at December 31, 2016 244 $6.09 – $735.00 $ 106.72 Warrants exercised (191 ) $6.09 $ 6.09 Warrants expired (49 ) $6.09 – $735.00 $ 444.00 Balance at December 31, 2017 4 $735.00 $ 735.00 July 2012 Public Offering Accounting for Warrants Nonvoting Common Stock

STOCK BASED COMPENSATION.

STOCK BASED COMPENSATION.	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION.	13. STOCK-BASED COMPENSATION. The Company has two equity incentive compensation plans: a 2006 Stock Incentive Plan and a 2016 Stock Incentive Plan. 2006 Stock Incentive Plan 2016 Stock Incentive Plan Stock Options Years Ended December 31, 2017 2016 Number Weighted Average Exercise Price Number Weighted Average Outstanding at beginning of year 240 $ 4.18 240 $ 4.18 Exercised (10 ) 3.74 — — Outstanding at end of year 230 $ 4.18 240 $ 4.18 Options exercisable at end of year 230 $ 4.18 240 $ 4.18 Stock options outstanding as of December 31, 2017 were as follows (number of shares in thousands): Options Outstanding Options Exercisable Range of Number Outstanding Weighted Average Remaining Contractual Life (yrs.) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 3.74 219 5.47 $ 3.74 219 $ 3.74 $ 12.90 11 3.59 $ 12.90 11 $ 12.90 The options outstanding at December 31, 2017 and 2016 had intrinsic values of $84,000 and $1,319,000, respectively. The intrinsic value of options exercised in 2017 was approximately $30,000. Restricted Stock Number of Weighted Unvested at December 31, 2014 390 $ 8.71 Issued 307 $ 10.16 Vested (220 ) $ 7.94 Canceled (14 ) $ 10.08 Unvested at December 31, 2015 463 $ 10.00 Issued 742 $ 5.24 Vested (250 ) $ 9.01 Canceled (25 ) $ 6.24 Unvested at December 31, 2016 930 $ 6.57 Issued 664 $ 6.65 Vested (480 ) $ 7.30 Canceled (37 ) $ 6.08 Unvested at December 31, 2017 1,077 $ 6.31 The fair value of the common stock at vesting aggregated $3,210,000, $1,142,000 and $2,603,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Stock-based compensation expense related to employee and non-employee restricted stock and option grants recognized in selling, general and administrative expenses, were as follows (in thousands): Years Ended December 31, 2017 2016 2015 Employees $ 3,303 $ 2,173 $ 1,694 Non-employees 525 443 325 Total stock-based compensation expense $ 3,828 $ 2,616 $ 2,019 Employee grants typically have a three year vesting schedule, while the non-employee grants have a one year vesting schedule. At December 31, 2017, the total compensation expense related to unvested awards which had not been recognized was $4,122,000 and the associated weighted-average period over which the compensation expense attributable to those unvested awards will be recognized was approximately 1.54 years.

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES.	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES.	14. COMMITMENTS AND CONTINGENCIES. Commitments Leases – Years Ended December 31, Capital Leases Operating Leases 2018 $ 613 $ 11,841 2019 45 9,236 2020 45 7,042 2021 34 4,074 2022 — 3,894 Thereafter — 5,530 Total minimum payments 737 $ 41,617 Amount representing interest (22 ) Obligations under capital leases 715 Obligations due within one year (592 ) Long-term obligations under capital leases $ 123 Total rent expense during the years ended December 31, 2017, 2016 and 2015 was $16,572,000, $16,253,000 and $10,476,000, respectively. Sales Commitments Purchase Commitments Property Tax Assessment Other Commitments Contingencies Litigation The Company assumed certain legal matters which were ongoing at July 1, 2015, the date of the Company’s acquisition of PE Central. Among them were lawsuits between Aventine Renewable Energy, Inc. (now known as Pacific Ethanol Pekin, LLC, or “PE Pekin”) and Glacial Lakes Energy, Aberdeen Energy and Redfield Energy, together, the “Defendants,” in which PE Pekin sought damages for breach of termination agreements that wound down ethanol marketing arrangements between PE Pekin and each of the Defendants. In February and March 2017, the Company and the Defendants entered into settlement agreements and the Defendants paid in cash to the Company $3.9 million in final resolution of these matters. The Company did not assign any value to the claims against the Defendants in its accounting for the PE Central acquisition as of July 1, 2015. The Company recorded a gain, net of legal fees, of $3.6 million upon receipt of the cash settlement and recognized the gain as a reduction to selling, general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2017. Pacific Ethanol, Inc., through a subsidiary acquired in its acquisition of PE Central, became involved in a pending lawsuit with Western Sugar Cooperative (“Western Sugar”) that pre-dated the acquisition. On February 27, 2015, Western Sugar filed a complaint in the United States District Court for the District of Colorado (Case No. 1:15-cv-00415) naming PE Central’s subsidiary as defendant. The PE Central subsidiary purchased surplus sugar through a United States Department of Agriculture program. Western Sugar was one of the entities that warehoused this sugar for the PE Central subsidiary. The suit alleged that the PE Central subsidiary breached its contract with Western Sugar by failing to pay certain penalty rates for the storage of its sugar or alternatively failing to pay a premium rate for storage. Western Sugar alleged that the penalty rates applied because the PE Central subsidiary failed to take timely delivery or otherwise cause timely shipment of the sugar. Western Sugar claimed “expectation damages” in the amount of approximately $8.6 million. On December 29, 2016, Western Sugar and the PE Central subsidiary entered into a settlement pursuant to which the PE Central subsidiary paid $1.7 million and Western Sugar filed a Stipulation of Dismissal with prejudice. As a result, the Company reduced its litigation reserve of $2.8 million and recognized the recovery of $1.1 million as a reduction to selling, general and administrative expenses for the year ended December 31, 2016. On May 24, 2013, GS CleanTech Corporation (“GS CleanTech”), filed a suit in the United States District Court for the Eastern District of California, Sacramento Division (Case No.: 2:13-CV-01042-JAM-AC), naming Pacific Ethanol, Inc. as a defendant. On August 29, 2013, the case was transferred to the United States District Court for the Southern District of Indiana and made part of the pre-existing multi-district litigation involving GS CleanTech and multiple defendants. The suit alleged infringement of a patent assigned to GS CleanTech by virtue of certain corn oil separation technology in use at one or more of the ethanol production facilities in which the Company has an interest, including Pacific Ethanol Stockton LLC (“PE Stockton”), located in Stockton, California. The complaint sought preliminary and permanent injunctions against the Company, prohibiting future infringement on the patent owned by GS CleanTech and damages in an unspecified amount adequate to compensate GS CleanTech for the alleged patent infringement, but in any event no less than a reasonable royalty for the use made of the inventions of the patent, plus attorneys’ fees. The Company answered the complaint, counterclaimed that the patent claims at issue, as well as the claims in several related patents, are invalid and unenforceable and that the Company is not infringing. Pacific Ethanol, Inc. does not itself use any corn oil separation technology and may seek a dismissal on those grounds. On March 17 and March 18, 2014, GS CleanTech filed suit naming as defendants two Company subsidiaries: PE Stockton and Pacific Ethanol Magic Valley, LLC (“PE Magic Valley”). The claims were similar to those filed against Pacific Ethanol, Inc. in May 2013. These two cases were transferred to the multi-district litigation division in United States District Court for the Southern District of Indiana, where the case against Pacific Ethanol, Inc. was pending. Although PE Stockton and PE Magic Valley do separate and market corn oil, Pacific Ethanol, Inc., PE Stockton and PE Magic Valley strongly disagree that either of the subsidiaries use corn oil separation technology that infringes the patent owned by GS CleanTech. In a January 16, 2015 decision, the District Court for the Southern District of Indiana ruled in favor of a stipulated motion for partial summary judgment for Pacific Ethanol, Inc., PE Stockton and PE Magic Valley finding that all of the GS CleanTech patents in the suit were invalid and, therefore, not infringed. A trial in the District Court for the Southern District of Indiana was conducted in October 2015 on the inequitable conduct issue as well as whether GS CleanTech’s behavior during prosecution of the patents rendered this an “exceptional case” which would allow the District Court to award the Defendants reimbursement of their attorneys’ fees expended for defense of the case. On September 15, 2016, the District Court issued an Order finding that GS CleanTech, the inventors and GS CleanTech’s counsel committed inequitable conduct in the prosecution of the GS CleanTech patents before the United States Patent and Trademark Office. As a result, the District Court issued a Final Judgment on September 15, 2016 dismissing with prejudice all of GS CleanTech’s cases against the Defendants, including Pacific Ethanol, Inc., PE Stockton and PE Magic Valley. The District Court’s ruling of inequitable conduct results in the unenforceability of the GS CleanTech patents against third parties, and also enables the Defendants to pursue reimbursement of their costs and attorneys’ fees from GS CleanTech and its counsel. GS CleanTech subsequently appealed the District Court’s finding that all of the GS CleanTech patents were invalid and its finding that the inventors and GS CleanTech’s counsel committed inequitable conduct. The Court of Appeals for the Federal Circuit ordered the appeals stayed until June 15, 2018, pending rulings on certain procedural motions. The Company has evaluated the above cases as well as other pending cases. The Company currently has not recorded a litigation contingency liability with respect to these cases.

FAIR VALUE MEASUREMENTS.

FAIR VALUE MEASUREMENTS.	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS.	15. FAIR VALUE MEASUREMENTS. The fair value hierarchy prioritizes the inputs used in valuation techniques into three levels, as follows: ● Level 1 – Observable inputs – unadjusted quoted prices in active markets for identical assets and liabilities; ● Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data; and ● Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable. For fair value measurements using significant unobservable inputs, a description of the inputs and the information used to develop the inputs is required along with a reconciliation of Level 3 values from the prior reporting period. Pooled separate accounts Warrants Other Derivative Instruments The following table summarizes recurring fair value measurements by level at December 31, 2017 (in thousands): Benefit Plan Fair Percentage Value Level 1 Level 2 Level 3 Allocation Assets: Derivative financial instruments(1) $ 998 $ 998 $ — $ — Defined benefit plan assets(2) (pooled separate accounts): Large U.S. Equity(3) 3,748 — 3,748 — 27 % Small/Mid U.S. Equity(4) 2,018 — 2,018 — 14 % International Equity(5) 2,528 — 2,528 — 18 % Fixed Income(6) 5,664 — 5,664 — 41 % $ 14,956 $ 998 $ 13,958 $ — Liabilities: Derivative financial instruments(7) $ (2,307 ) $ (2,307 ) $ — $ — The following table summarizes recurring fair value measurements by level at December 31, 2016 (in thousands): Benefit Plan Fair Percentage Value Level 1 Level 2 Level 3 Allocation Assets: Derivative financial instruments(1) $ 978 $ 978 $ — $ — Defined benefit plan assets(2) (pooled separate accounts): Large U.S. Equity(3) 3,134 — 3,134 — 25 % Small/Mid U.S. Equity(4) 1,802 — 1,802 — 15 % International Equity(5) 2,006 — 2,006 — 16 % Fixed Income(6) 5,481 — 5,481 — 44 % $ 13,401 $ 978 $ 12,423 $ — Liabilities: Warrants(8) $ (651 ) $ — $ — $ (651 ) Derivative financial instruments(7) (4,115 ) (4,115 ) — — $ (4,766 ) $ (4,115 ) $ — $ (651 ) (1) Included in derivative assets in the consolidated balance sheets. (2) See Note 9 for accounting discussion. (3) This category includes investments in funds comprised of equity securities of large U.S. companies. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (4) This category includes investments in funds comprised of equity securities of small- and medium-sized U.S. companies. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (5) This category includes investments in funds comprised of equity securities of foreign companies including emerging markets. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (6) This category includes investments in funds comprised of U.S. and foreign investment-grade fixed income securities, high-yield fixed income securities that are rated below investment-grade, U.S. treasury securities, mortgage-backed securities, and other asset-backed securities. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (7) Included in derivative liabilities in the consolidated balance sheets. (8) Included in warrant liabilities at fair value in the consolidated balance sheets. Significant assumptions used and related fair values for the warrants as of December 31, 2016 were as follows: Original Issuance Exercise Price Volatility Risk Free Interest Rate Term (years) Market Discount Warrants Outstanding Fair Value 07/3/2012 $ 6.09 40.9 % 0.62 % 0.50 11.3 % 211,000 $ 651,000 The changes in the Company’s fair value of its Level 3 inputs with respect to its warrants were as follows (in thousands): Warrants Balance, December 31, 2014 $ 1,986 Exercises of warrants (72 ) Expiration of warrants (527 ) Adjustments to fair value for the period (1,114 ) Balance, December 31, 2015 $ 273 Exercises of warrants (179 ) Adjustments to fair value for the period 557 Balance, December 31, 2016 $ 651 Exercises of warrants (178 ) Adjustments to fair value for the period (473 ) Balance, December 31, 2017 $ — \

PARENT COMPANY FINANCIALS.

PARENT COMPANY FINANCIALS.	12 Months Ended
	Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
PARENT COMPANY FINANCIALS.	16. PARENT COMPANY FINANCIALS. Restricted Net Assets Parent company financial statements for the periods covered in this report are set forth below. December 31, 2017 2016 ASSETS Current Assets: Cash and cash equivalents $ 5,314 $ 11,060 Receivables from subsidiaries 3,138 7,203 Other current assets 1,631 6,442 Total current assets 10,083 24,705 Property and equipment, net 1,071 1,433 Other Assets: Investments in subsidiaries 359,680 363,401 Pacific Ethanol West plant receivable 58,766 58,766 Other assets 1,565 1,110 Total other assets 420,011 423,277 Total Assets $ 431,165 $ 449,415 Current Liabilities: Accounts payable and accrued liabilities $ 2,218 $ 1,758 Payable to subsidiaries 625 1,568 Accrued PE Op Co. purchase 3,828 3,828 Other current liabilities 245 184 Total current liabilities 6,916 7,338 Long-term debt, net 67,530 53,360 Warrant liabilities at fair value — 651 Deferred tax liabilities 224 52 Other liabilities 56 124 Total Liabilities 74,726 61,525 Stockholders’ Equity: Preferred stock 1 1 Common and non-voting common stock 44 44 Additional paid-in capital 927,090 922,698 Accumulated other comprehensive loss (2,234 ) (2,620 ) Accumulated deficit (568,462 ) (532,233 ) Total Pacific Ethanol, Inc. stockholders’ equity 356,439 387,890 Total Liabilities and Stockholders’ Equity $ 431,165 $ 449,415 Years Ended December 31, 2017 2016 2015 Management fees from subsidiaries $ 11,904 $ 12,968 $ 9,857 Selling, general and administrative expenses 18,185 14,491 14,336 Asset impairment — — 1,970 Loss from operations (6,281 ) (1,523 ) (6,449 ) Fair value adjustments 473 (557 ) 1,641 Interest income 4,793 5,964 5,739 Interest expense (5,829 ) (240 ) (27 ) Other income (expense), net (95 ) 1,931 — Income (loss) before provision for income taxes (6,939 ) 5,575 904 Provision (benefit) for income taxes (321 ) (981 ) (10,034 ) Income (loss) before equity in earnings of subsidiaries (6,618 ) 6,556 10,938 Equity in losses of subsidiaries (28,346 ) (5,137 ) (29,724 ) Consolidated net income (loss) $ (34,964 ) $ 1,419 $ (18,786 ) For the Years Ended December 31, 2017 2016 2015 Operating Activities: Net income (loss) $ (34,964 ) $ 1,419 $ (18,786 ) Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: Equity in losses of subsidiaries 28,346 5,137 29,724 Dividends from subsidiaries 3,500 — — Depreciation and amortization 830 727 390 Fair value adjustments (473 ) 557 (1,641 ) Asset impairment — — 1,970 Deferred income taxes 169 (1,122 ) (14,260 ) Amortization of debt discounts 636 10 — Changes in operating assets and liabilities: Accounts receivables 4,065 7,302 (5,958 ) Other assets 4,356 4,647 (4,139 ) Accounts payable and accrued expenses 3,859 (3,741 ) 604 Accounts payable with subsidiaries (943 ) (9,385 ) 11,179 Net cash provided by (used in) operating activities $ 9,381 $ 5,551 $ (917 ) Investing Activities: Additions to property and equipment $ (468 ) $ (465 ) $ (1,483 ) Investments in subsidiaries (28,126 ) (50,886 ) — Purchase of PE OP Co. debt — (17,003 ) — Net cash used in investing activities $ (28,594 ) $ (68,354 ) $ (1,483 ) Financing Activities: Proceeds from issuances of senior notes $ 13,530 $ 53,350 $ — Proceeds from warrant stock option exercises 1,202 1,164 368 Preferred stock dividend payments (1,265 ) (1,269 ) (1,265 ) Net cash provided by (used in) financing activities $ 13,467 $ 53,245 $ (897 ) Net decrease in cash and cash equivalents (5,746 ) (9,558 ) (3,297 ) Cash and cash equivalents at beginning of period 11,060 20,618 23,915 Cash and cash equivalents at end of period $ 5,314 $ 11,060 $ 20,618

QUARTERLY FINANCIAL DATA (UNAUD

QUARTERLY FINANCIAL DATA (UNAUDITED).	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY FINANCIAL DATA (UNAUDITED).	17. QUARTERLY FINANCIAL DATA (UNAUDITED). The Company’s quarterly results of operations for the years ended December 31, 2017 and 2016 are as follows (in thousands). Certain of these calculations have been revised from the calculations previously reported to reflect the participating securities. First Second Third Fourth December 31, 2017: Net sales $ 386,340 $ 405,202 $ 445,442 $ 395,271 Gross profit (loss) $ (5,773 ) $ 1,653 $ 12,065 $ (2,014 ) Income (loss) from operations $ (11,223 ) $ (7,109 ) $ 3,345 $ (10,598 ) Net loss attributed to Pacific Ethanol, Inc. $ (12,636 ) $ (8,841 ) $ (202 ) $ (13,285 ) Preferred stock dividends $ (312 ) $ (315 ) $ (319 ) $ (319 ) Net loss available to common stockholders $ (12,948 ) $ (9,156 ) $ (521 ) $ (13,604 ) Basic and diluted loss per common share $ (0.31 ) $ (0.22 ) $ (0.01 ) $ (0.32 ) First Second Third Fourth December 31, 2016: Net sales $ 342,373 $ 422,860 $ 417,806 $ 441,719 Gross profit $ 1,668 $ 18,355 $ 7,021 $ 27,314 Income (loss) from operations $ (7,248 ) $ 11,556 $ 393 $ 18,808 Net income (loss) attributed to Pacific Ethanol, Inc. $ (13,226 ) $ 5,086 $ (3,518 ) $ 13,077 Preferred stock dividends $ (315 ) $ (315 ) $ (319 ) $ (320 ) Income allocated to participating securities $ — $ (71 ) $ — $ (189 ) Net income (loss) available to common stockholders $ (13,541 ) $ 4,700 $ (3,837 ) $ 12,569 Basic and diluted income (loss) per common share $ (0.32 ) $ 0.11 $ (0.09 ) $ 0.30

ORGANIZATION AND SIGNIFICANT 25

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. (Policies)	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business The Company’s acquisition of Aventine Renewable Energy Holdings, Inc. (now, Pacific Ethanol Central, LLC, a Delaware limited liability company, “PE Central”) was consummated on July 1, 2015, and as a result, the Company’s consolidated financial statements include the results of PE Central only as of and for the years ended December 31, 2017 and 2016 and for the six months ended December 31, 2015. On December 15, 2016, the Company and Aurora Cooperative Elevator Company, a Nebraska cooperative corporation (“ACEC”), closed a transaction under a contribution agreement under which the Company contributed its Aurora, Nebraska ethanol facilities and ACEC contributed its Aurora grain elevator and related grain handling assets to Pacific Aurora, LLC (“Pacific Aurora”) in exchange for equity interests in Pacific Aurora. On December 15, 2016, concurrently with the closing under the contribution agreement, the Company sold a portion of its equity interest in Pacific Aurora to ACEC. As a result, the Company owned 73.93% of Pacific Aurora and ACEC owned 26.07% of Pacific Aurora as of December 31, 2017 and 2016. Further, the Company has consolidated 100% of the results of Pacific Aurora and recorded ACEC’s 26.07% equity interest as noncontrolling interests in the accompanying financial statements for the year ended December 31, 2017 and for the period December 15, 2016 through December 31, 2016. The Company’s acquisition of Illinois Corn Processing, LLC (“ICP”) was consummated on July 3, 2017, and as a result, the Company’s consolidated financial statements include the results of ICP only for the period from July 3, 2017 through December 31, 2017. The Company is a leading producer and marketer of low-carbon renewable fuels in the United States. The Company’s four ethanol plants in the Western United States (together with their respective holding companies, the “Pacific Ethanol West Plants”) are located in close proximity to both feed and ethanol customers and thus enjoy unique advantages in efficiency, logistics and product pricing. These plants produce among the lowest-carbon ethanol produced in the United States due to low energy use in production. With the addition of four Midwestern ethanol plants in July 2015 as a result of the Company’s acquisition of PE Central and the addition of ICP’s plant in July 2017, the Company now has a combined production capacity of 605 million gallons per year, markets, on an annualized basis, nearly 1.0 billion gallons of ethanol and specialty alcohols, and produces, on an annualized basis, over 3.0 million tons of co-products on a dry matter basis, such as wet and dry distillers grains, wet and dry corn gluten feed, condensed distillers solubles, corn gluten meal, corn germ, dried yeast and CO 2 As of December 31, 2017, all nine facilities were operating. As market conditions change, the Company may increase, decrease or idle production at one or more operational facilities or resume operations at any idled facility.
Basis of Presentation	Basis of Presentation
Segments	Segments Segment Reporting
Cash and Cash Equivalents	Cash and Cash Equivalents
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for balances that appear to have specific collection issues. The collection process is based on the age of the invoice and requires attempted contacts with the customer at specified intervals. If, after a specified number of days, the Company has been unsuccessful in its collection efforts, a bad debt allowance is recorded for the balance in question. Delinquent accounts receivable are charged against the allowance for doubtful accounts once uncollectibility has been determined. The factors considered in reaching this determination are the apparent financial condition of the customer and the Company’s success in contacting and negotiating with the customer. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of ability to make payments, additional allowances may be required. Of the accounts receivable balance, approximately $64,501,000 and $64,853,000 at December 31, 2017 and 2016, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $19,000 and $331,000 as of December 31, 2017 and 2016, respectively. The Company recorded a bad debt expense of $5,000 and $306,000 and a recovery of $354,000 for the years ended December 31, 2017, 2016 and 2015, respectively. The Company does not have any off-balance sheet credit exposure related to its customers.
Concentration Risks	Concentration Risks The Company sells fuel-grade ethanol to gasoline refining and distribution companies. The Company sold ethanol to customers representing 10% or more of the Company’s total net sales, as follows. Years Ended December 31, 2017 2016 2015 Customer A 16 % 17 % 12 % Customer B 11 % 12 % 15 % Customer C 6 % 6 % 12 % The Company had accounts receivable due from these customers totaling $21,584,000 and $21,274,000, representing 27% and 25% of total accounts receivable, as of December 31, 2017 and 2016, respectively. The Company purchases corn, its largest cost component in producing ethanol, from its suppliers. The Company purchased corn from suppliers representing 10% or more of the Company’s total corn purchases, as follows: Years Ended December 31, 2017 2016 2015 Supplier A 14 % 13 % 19 % Supplier B 13 % 4 % — % Supplier C 10 % 8 % 9 % Supplier D 9 % 13 % 13 % Approximately 32% of the Company’s employees are covered by a collective bargaining agreement.
Inventories	Inventories December 31, 2017 2016 Finished goods $ 35,652 $ 33,773 Work in progress 8,807 7,092 Raw materials 7,601 6,571 Low-carbon and RIN credits 7,952 10,926 Other 1,538 1,708 Total $ 61,550 $ 60,070
Property and Equipment	Property and Equipment Buildings 40 years Facilities and plant equipment 10 – 25 years Other equipment, vehicles and furniture 5 – 10 years The cost of normal maintenance and repairs is charged to operations as incurred. Significant capital expenditures that increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The cost of property and equipment sold, or otherwise disposed of, and the related accumulated depreciation or amortization are removed from the accounts, and any resulting gains or losses are reflected in current operations.
Intangible Assets	Intangible Asset
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities
Revenue Recognition	Revenue Recognition ● As a producer ● As a merchant ● As an agent Revenue from sales of third-party ethanol is recorded net of costs when the Company is acting as an agent between a customer and a supplier and gross when the Company is a principal to the transaction. The Company recorded $1,663,000, $1,604,000 and $1,510,000 in net sales when acting as an agent for the years ended December 31, 2017, 2016 and 2015, respectively. Several factors are considered to determine whether the Company is acting as an agent or principal, most notably whether the Company is the primary obligor to the customer and whether the Company has inventory risk and related risk of loss or whether the Company adds meaningful value to the supplier’s product or service. Consideration is also given to whether the Company has latitude in establishing the sales price or has credit risk, or both. When the Company acts as an agent, it recognizes revenue on a net basis or recognizes its predetermined fees and any associated freight, based upon the amount of net revenues retained in excess of amounts paid to suppliers. The Company records revenues based upon the gross amounts billed to its customers in transactions where the Company acts as a producer or a merchant and obtains title to ethanol and therefore owns the product and any related, unmitigated inventory risk for the ethanol, regardless of whether the Company actually obtains physical control of the product.
Shipping and Handling Costs	Shipping and Handling Costs
Selling Costs	Selling Costs
Stock-Based Compensation	Stock-Based Compensation
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets
Deferred Financing Costs	Deferred Financing Costs
Provision for Income Taxes	Provision for Income Taxes The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. Should the Company incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of interest expense and other income (expense), net, respectively. Deferred tax assets and liabilities are classified as noncurrent in the Company’s consolidated balance sheets. The Company files a consolidated federal income tax return. This return includes all wholly-owned subsidiaries as well as the Company’s pro-rata share of taxable income from pass-through entities in which the Company owns less than 100%. State tax returns are filed on a consolidated, combined or separate basis depending on the applicable laws relating to the Company and its subsidiaries.
Income (Loss) Per Share	Income (Loss) Per Share The following tables compute basic and diluted earnings per share (in thousands, except per share data): Year Ended December 31, 2017 Loss Shares Per-Share Net loss attributed to Pacific Ethanol $ (34,964 ) Less: Preferred stock dividends (1,265 ) Basic and Diluted loss per share: Loss available to common stockholders $ (36,229 ) 42,745 $ (0.85 ) Year Ended December 31, 2016 Income Shares Per-Share Net income attributed to Pacific Ethanol $ 1,419 Less: Preferred stock dividends (1,269 ) Less: Allocated to participating securities (2 ) Basic income per share: Income available to common stockholders $ 148 42,182 $ 0.00 Add: Options — 69 Diluted income per share: Income available to common stockholders $ 148 42,251 $ 0.00 Year Ended December 31, 2015 Loss Shares Per-Share Net loss attributed to Pacific Ethanol $ (18,786 ) Less: Preferred stock dividends (1,265 ) Basic and Diluted loss per share: Loss available to common stockholders $ (20,051 ) 33,173 $ (0.60 ) There were an aggregate of 719,000, 704,000 and 817,000 potentially dilutive shares from convertible securities outstanding as of December 31, 2017, 2016 and 2015, respectively. These convertible securities were not considered in calculating diluted income (loss) per common share for the years ended December 31, 2017, 2016 and 2015 as their effect would be anti-dilutive.
Financial Instruments	Financial Instruments
Employment-related Benefits	Employment-related Benefits
Estimates and Assumptions	Estimates and Assumptions
Subsequent Events	Subsequent Events
Reclassifications	Reclassifications
Recent Accounting Pronouncements	Recent Accounting Pronouncements The provisions of ASC 606 include a five-step process by which an entity will determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which an entity expects to be entitled in exchange for those goods or services. ASC 606 requires the Company to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies the performance obligation. The Company adopted ASC 606 on January 1, 2018. The Company has completed its evaluation of the new requirements under ASC 606 on each of its major revenue types. The Company’s assessment indicates that ASC 606 will not materially change the way the Company accounts for its contracts with its customers, which will continue to be recognized at a point in time, however, will expand certain disclosures of its revenue streams. The Company will adopt the new guidance using the modified retrospective transition method. In February 2016, the FASB issued new guidance on accounting for leases. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted cash flow basis; and (2) a “right of use” asset, which is an asset that represents the lessee’s right to use the specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged, with some minor exceptions. Lessees will no longer be provided with a source of off-balance sheet financing for other than short-term leases. The standard is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company expects that upon adoption of this accounting standard, right of use assets and lease obligations will be recognized in its consolidated balance sheets in amounts that will be material. In April 2016, the FASB issued new guidance to reduce the complexity of certain aspects of accounting for employee share-based payment transactions. Prior to adoption of the standard, accruals of compensation costs were based on an estimated forfeiture rate. The new guidance allows an entity to make an entity-wide accounting policy election to either continue using an estimate of forfeitures or account for forfeitures only when they occur. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Effective January 1, 2017, the Company elected to discontinue the use of an estimated forfeiture rate and instead account for actual forfeitures as they occur. The transition guidance requires an adjustment to retained earnings for any cumulative effect. The impact to the Company upon adoption was determined to be immaterial.

ORGANIZATION AND SIGNIFICANT 26

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. (Tables)	12 Months Ended
	Dec. 31, 2017
Organization And Significant Accounting Policies Tables
Schedule of concentrations of credit risk major customers	The Company sold ethanol to customers representing 10% or more of the Company’s total net sales, as follows. Years Ended December 31, 2017 2016 2015 Customer A 16 % 17 % 12 % Customer B 11 % 12 % 15 % Customer C 6 % 6 % 12 %
Schedule of purchases from external customers	The Company purchased corn from suppliers representing 10% or more of the Company’s total corn purchases, as follows: Years Ended December 31, 2017 2016 2015 Supplier A 14 % 13 % 19 % Supplier B 13 % 4 % — % Supplier C 10 % 8 % 9 % Supplier D 9 % 13 % 13 %
Schedule of inventory	Inventory balances consisted of the following (in thousands): December 31, 2017 2016 Finished goods $ 35,652 $ 33,773 Work in progress 8,807 7,092 Raw materials 7,601 6,571 Low-carbon and RIN credits 7,952 10,926 Other 1,538 1,708 Total $ 61,550 $ 60,070
Schedule of property and equipment useful lives	Depreciation is computed using the straight-line method over the following estimated useful lives: Buildings 40 years Facilities and plant equipment 10 – 25 years Other equipment, vehicles and furniture 5 – 10 years
Schedule of earnings per share	The following tables compute basic and diluted earnings per share (in thousands, except per share data): Year Ended December 31, 2017 Loss Shares Per-Share Net loss attributed to Pacific Ethanol $ (34,964 ) Less: Preferred stock dividends (1,265 ) Basic and Diluted loss per share: Loss available to common stockholders $ (36,229 ) 42,745 $ (0.85 ) Year Ended December 31, 2016 Income Shares Per-Share Net income attributed to Pacific Ethanol $ 1,419 Less: Preferred stock dividends (1,269 ) Less: Allocated to participating securities (2 ) Basic income per share: Income available to common stockholders $ 148 42,182 $ 0.00 Add: Options — 69 Diluted income per share: Income available to common stockholders $ 148 42,251 $ 0.00 Year Ended December 31, 2015 Loss Shares Per-Share Net loss attributed to Pacific Ethanol $ (18,786 ) Less: Preferred stock dividends (1,265 ) Basic and Diluted loss per share: Loss available to common stockholders $ (20,051 ) 33,173 $ (0.60 )

PACIFIC ETHANOL PLANTS. (Tables

PACIFIC ETHANOL PLANTS. (Tables)	12 Months Ended
	Dec. 31, 2017
Pacific Aurora [Member]
Schedule of purchase price allocation	The carrying values and classification of assets and liabilities of Pacific Aurora as of December 31, 2016 were as follows (in thousands): Cash and equivalents $ 1,453 Accounts receivable 16,804 Inventories 3,837 Other current assets 77 Total current assets 22,171 Property and equipment 115,759 Other assets 1,387 Total assets $ 139,317 Accounts payable and accrued liabilities $ 20,152 Other current liabilities 2,045 Long-term debt outstanding, net 621 Total liabilities $ 22,818
PE Central [Member]
Schedule of purchase price allocation	The purchase price consideration allocation is as follows (in thousands): Cash and equivalents $ 18,756 Accounts receivable 10,430 Inventories 29,483 Other current assets 8,304 Total current assets 66,973 Property and equipment 312,781 Net deferred tax assets 12,159 Other assets 750 Total assets acquired $ 392,663 Accounts payable and accrued liabilities $ 27,780 Long-term debt - revolvers 13,721 Long-term debt - term debt 142,744 Pension plan liabilities 8,518 Other non-current liabilities 25,327 Total liabilities assumed $ 218,090 Net assets acquired $ 174,573
Schedule of pro forma allocation	The following table presents unaudited pro forma financial information for the year ended December 31, 2015, assuming the acquisition occurred on January 1, 2014 (in thousands except per share data). Net sales – pro forma $ 1,484,676 Cost of goods sold – pro forma $ 1,469,512 Selling, general and administrative expenses – pro forma $ 34,735 Net loss – pro forma $ (34,136 ) Diluted net loss per share – pro forma $ (0.81 ) Diluted weighted-average shares – pro forma 42,053
ICP [Member]
Schedule of purchase price allocation	The Company has recognized the following allocation of the purchase price at fair values. No intangible assets or liabilities have been recognized due to ICP’s contracts being materially close to market prices. The Company’s purchase price consideration allocation is as follows (in thousands): Cash and equivalents $ 426 Accounts receivable 11,636 Inventories 9,227 Other current assets 1,560 Total current assets 22,849 Property and equipment 61,128 Other assets 328 Total assets acquired $ 84,305 Accounts payable, trade $ 5,683 Other current liabilities 1,486 Total current liabilities 7,169 Other non-current liabilities 209 Total liabilities assumed $ 7,378 Net assets acquired $ 76,927 Estimated goodwill $ — Total purchase price $ 76,927
Schedule of pro forma allocation	The following table presents unaudited pro forma combined financial information assuming the acquisition of ICP occurred on January 1, 2016. Years Ended December 31, 2017 2016 Revenues – pro forma $ 1,710,317 $ 1,802,159 Consolidated net income (loss) – pro forma $ (42,589 ) $ 8,329 Diluted net income (loss) per share – pro forma $ (0.95 ) $ 0.16 Diluted weighted-average shares – pro forma 42,745 42,251

SEGMENTS. (Tables)

SEGMENTS. (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Schedule of financial date for operating segments	The following tables set forth certain financial data for the Company’s operating segments (in thousands): Years Ended December 31, 2017 2016 2015 Net Sales Production: Net sales to external customers $ 1,102,722 $ 1,045,807 $ 710,201 Intersegment net sales 1,898 1,169 — Total production segment net sales 1,104,620 1,046,976 710,201 Marketing and distribution: Net sales to external customers 529,533 578,951 480,975 Intersegment net sales 8,464 8,029 5,262 Total marketing and distribution net sales 537,997 586,980 486,237 Intersegment eliminations (10,362 ) (9,198 ) (5,262 ) Net sales as reported $ 1,632,255 $ 1,624,758 $ 1,191,176 Cost of goods sold: Production $ 1,098,977 $ 1,015,655 $ 716,877 Marketing and distribution 535,032 575,921 476,410 Intersegment eliminations (7,685 ) (21,176 ) (12,477 ) Cost of goods sold as reported $ 1,626,324 $ 1,570,400 $ 1,180,810 Income (loss) before provision for income taxes: Production $ (27,458 ) $ (6,882 ) $ (32,723 ) Marketing and distribution (2,463 ) 4,517 3,200 Corporate activities (8,474 ) 2,910 616 $ (38,395 ) $ 545 $ (28,907 ) Depreciation and amortization: Production $ 37,637 $ 34,528 $ 23,091 Marketing and distribution — 3 151 Corporate activities 1,014 910 390 $ 38,651 $ 35,441 $ 23,632 Interest expense: Production $ 5,887 $ 20,794 $ 11,969 Marketing and distribution 1,271 1,404 625 Corporate activities 5,780 208 — $ 12,938 $ 22,406 $ 12,594
Schedule of assets by operating segments	The following table sets forth the Company’s total assets by operating segment (in thousands): December 31, 2017 2016 Total assets: Production $ 583,696 $ 542,688 Marketing and distribution 127,242 146,356 Corporate assets 9,358 19,194 $ 720,296 $ 708,238

PROPERTY AND EQUIPMENT. (Tables

PROPERTY AND EQUIPMENT. (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment consisted of the following (in thousands): December 31, 2017 2016 Facilities and plant equipment $ 601,156 $ 530,735 Land 8,970 7,771 Other equipment, vehicles and furniture 10,189 9,714 Construction in progress 38,041 29,393 658,356 577,613 Accumulated depreciation (150,004 ) (112,423 ) $ 508,352 $ 465,190

DERIVATIVES. (Tables)

DERIVATIVES. (Tables)	12 Months Ended
	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivatives not designated as hedging instruments	The classification and amounts of the Company’s derivatives not designated as hedging instruments, and related cash collateral balances, are as follows (in thousands): As of December 31, 2017 Assets Liabilities Type of Instrument Balance Sheet Location Fair Balance Sheet Location Fair Cash collateral balance Other current assets $ 3,813 Commodity contracts Derivative assets $ 998 Derivative liabilities $ 2,307 As of December 31, 2016 Assets Liabilities Type of Instrument Balance Sheet Location Fair Balance Sheet Location Fair Cash collateral balance Other current assets $ 4,331 Commodity contracts Derivative assets $ 978 Derivative liabilities $ 4,115
Schedule of recognized gains (losses) on derivatives	The classification and amounts of the Company’s recognized gains (losses) for its derivatives not designated as hedging instruments are as follows (in thousands): Realized Gains (Losses) For the Years Ended December 31, Type of Instrument Statements of Operations Location 2017 2016 2015 Commodity contracts Cost of goods sold $ (4,165 ) $ 1,386 $ (338 ) $ (4,165 ) $ 1,386 $ (338 ) Unrealized Gains (Losses) For the Years Ended December 31, Type of Instrument Statements of Operations Location 2017 2016 2015 Commodity contracts Cost of goods sold $ 2,088 $ (3,370 ) $ (204 ) $ 2,088 $ (3,370 ) $ (204 )

DEBT. (Tables)

DEBT. (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Schedule of long term debt	Long-term borrowings are summarized as follows (in thousands): December 31, December 31, Kinergy line of credit $ 49,477 $ 49,862 Pekin term loan 53,500 64,000 Pekin revolving loan 32,000 32,000 ICP term loan 22,500 — ICP revolving loan 18,000 — Pacific Aurora line of credit — 1,000 Parent notes payable 68,948 55,000 244,425 201,862 Less unamortized debt discount (1,409 ) (1,626 ) Less unamortized debt financing costs (1,925 ) (1,708 ) Less short-term portion (20,000 ) (10,500 ) Long-term debt $ 221,091 $ 188,028
Schedule of maturities of long-term debt	The Company’s long-term debt matures as follows (in thousands): December 31: 2018 $ 20,000 2019 88,948 2020 20,000 2021 16,000 2022 99,477 $ 244,425

PENSION PLANS. (Tables)

PENSION PLANS. (Tables)	12 Months Ended
	Dec. 31, 2017
Retirement Plan [Member]
Schedule of defined contribution plan schedule	Information related to the Retirement Plan as of and for the years ended December 31, 2017, 2016 and 2015 is presented below (dollars in thousands): 2017 2016 2015 Changes in plan assets: Fair value of plan assets, beginning $ 12,423 $ 12,567 $ 13,180 Actual gains (losses) 1,722 523 (298 ) Benefits paid (665 ) (667 ) (315 ) Company contributions 478 — — Participant contributions — — — Fair value of plan assets, ending $ 13,958 $ 12,423 $ 12,567 Less: projected accumulated benefit obligation $ 19,658 $ 18,455 $ 16,552 Funded status, (underfunded)/overfunded $ (5,700 ) $ (6,032 ) $ (3,985 ) Amounts recognized in the consolidated balance sheets: Other liabilities $ (5,700 ) $ (6,032 ) $ (3,985 ) Accumulated other comprehensive loss (income) $ 726 $ 1,047 $ (885 ) Components of net periodic benefit costs are as follows: Service cost $ 391 $ 223 $ 211 Interest cost 750 686 338 Expected return on plan assets (674 ) (794 ) (500 ) Net periodic benefit cost $ 467 $ 115 $ 49 Loss (gain) recognized in other comprehensive income (expense) $ (321 ) $ 1,932 $ (885 ) Assumptions used in computation benefit obligations: Discount rate 3.60 % 4.15 % 4.23 % Expected long-term return on plan assets 6.00 % 6.75 % 7.75 % Rate of compensation increase — — —
Schedule of expected benefit payments	The following table summarizes the expected benefit payments for the Company’s plan for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter (in thousands): December 31: 2018 $ 730 2019 740 2020 780 2021 790 2022 830 2023-27 4,820 $ 8,690
Postretirement Plan [Member]
Schedule of defined contribution plan schedule	Information related to the Postretirement Plan as of December 31, 2017 and 2016 is presented below (dollars in thousands): 2017 2016 Amounts at the end of the year: Accumulated/projected benefit obligation $ 5,565 $ 5,371 Fair value of plan assets — — Funded status, (underfunded)/overfunded $ (5,565 ) $ (5,371 ) Amounts recognized in the consolidated balance sheets: Accrued liabilities $ (240 ) $ (310 ) Other liabilities $ (5,325 ) $ (5,061 ) Accumulated other comprehensive loss $ 1,508 $ 1,573 Years Ended December 31, 2017 2016 2015 Amounts recognized in the plan for the year: Company contributions $ 157 $ 163 $ 20 Participant contributions $ 22 $ 22 $ 15 Benefits paid $ (179 ) $ (184 ) $ (35 ) Components of net periodic benefit costs are as follows: Service cost $ 84 $ 48 $ 32 Interest cost 198 139 65 Amortization of prior service costs 134 — — Net periodic benefit cost $ 416 $ 187 $ 97 Loss (gain) recognized in other comprehensive income $ (65 ) $ 1,728 $ (155 ) Discount rate used in computation of benefit obligations 3.80 % 3.95 % 3.67 %
Schedule of expected benefit payments	The following table summarizes the expected benefit payments for the Company’s plan for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter (in thousands): December 31: 2018 $ 240 2019 270 2020 300 2021 340 2022 330 2023-27 2,120 $ 3,600

INCOME TAXES. (Tables)

INCOME TAXES. (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of provision for income taxes	The Company recorded a provision (benefit) for income taxes as follows (in thousands): Years Ended December 31, 2017 2016 2015 Current provision (benefit) $ (490 ) $ 141 $ (8,011 ) Deferred provision (benefit) 169 (1,122 ) (2,023 ) Total $ (321 ) $ (981 ) $ (10,034 )
Schedule of reconciliation of effective tax rate	A reconciliation of the differences between the United States statutory federal income tax rate and the effective tax rate as provided in the consolidated statements of operations is as follows: Years Ended December 31, 2017 2016 2015 Statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 4.0 6.4 9.2 Change in valuation allowance (34.5 ) (298.8 ) (4.2 ) Impact of Federal tax rate change on deferreds (28.4 ) — — Impact of Federal tax rate change on valuation allowance 29.4 — — Fair value adjustments and warrant inducements 0.4 37.2 2.0 Noncontrolling interests (3.2 ) — — Domestic production gross receipts deduction — — (2.9 ) Section 382 reduction to loss carryover — — 0.1 Stock compensation (0.1 ) 58.8 (0.8 ) Non-deductible items (0.2 ) 8.9 (0.5 ) Other (1.6 ) (27.5 ) (3.2 ) Effective rate 0.8 % (180.0 )% 34.7 %
Schedule of components of deferred income taxes	Deferred income taxes are provided using the asset and liability method to reflect temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using presently enacted tax rates and laws. The components of deferred income taxes included in the consolidated balance sheets were as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 40,989 $ 45,709 R&D and AMT credits 1,797 2,465 Railcar contracts 1,415 3,348 Stock-based compensation 738 946 Allowance for doubtful accounts and other assets 637 856 Derivatives 267 1,228 Pension liability 2,939 2,204 Other 2,097 4,316 Total deferred tax assets 50,879 61,072 Deferred tax liabilities: Property and equipment (25,194 ) (45,757 ) Intangibles (749 ) (1,091 ) Other (521 ) (1,593 ) Total deferred tax liabilities (26,464 ) (48,441 ) Valuation allowance (24,639 ) (12,683 ) Net deferred tax liabilities, included in other liabilities $ (224 ) $ (52 )
Schedule of net operating loss carryforwards	These net operating loss carryforwards expire as follows (in thousands): Tax Years Federal State 2018–2022 $ — $ — 2023–2027 13,038 2,945 2028–2032 22,025 65,921 2033–2036 119,526 80,055 $ 154,589 $ 148,921 Certain of these net operating losses are not immediately available, but become available to be utilized in each of the years ended December 31, as follows (in thousands): Year Federal State 2017 $ 59,675 $ 82,892 2018 6,441 5,372 2019 6,374 5,345 2020 6,308 5,318 2021 6,308 5,318 Thereafter 69,483 44,676 $ 154,589 $ 148,921
Schedule of income tax in the United States jurisdiction and various state jurisdictions	These jurisdictions, along with the years still open to audit under the applicable statutes of limitation, are as follows: Jurisdiction Tax Years Federal 2014 – 2016 Arizona 2014 – 2016 California 2013 – 2016 Colorado 2013 – 2016 Idaho 2014 – 2016 Illinois 2014 – 2016 Indiana 2014 – 2016 Iowa 2014 – 2016 Kansas 2014 – 2016 Minnesota 2014 – 2016 Missouri 2014 – 2016 Nebraska 2014 – 2016 Oklahoma 2014 – 2016 Oregon 2014 – 2016 Texas 2013 – 2016

COMMON STOCK AND WARRANTS. (Tab

COMMON STOCK AND WARRANTS. (Tables)	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Schedule of warrant activity	The following table summarizes warrant activity for the years ended December 31, 2017, 2016 and 2015 (number of shares in thousands): Number of Price per Weighted Balance at December 31, 2014 856 $6.09 – $735.00 $ 36.55 Warrants exercised (42 ) $8.85 $ 8.85 Warrants expired (432 ) $8.85 $ 8.85 Balance at December 31, 2015 382 $6.09 – $735.00 $ 70.87 Warrants exercised (138 ) $8.43 $ 8.43 Balance at December 31, 2016 244 $6.09 – $735.00 $ 106.72 Warrants exercised (191 ) $6.09 $ 6.09 Warrants expired (49 ) $6.09 – $735.00 $ 444.00 Balance at December 31, 2017 4 $735.00 $ 735.00

STOCK BASED COMPENSATION. (Tabl

STOCK BASED COMPENSATION. (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of option activity	Summaries of the status of Company’s stock option plans as of December 31, 2017 and 2016 and of changes in options outstanding under the Company’s plans during those years are as follows (number of shares in thousands): Years Ended December 31, 2017 2016 Number Weighted Average Exercise Price Number Weighted Average Outstanding at beginning of year 240 $ 4.18 240 $ 4.18 Exercised (10 ) 3.74 — — Outstanding at end of year 230 $ 4.18 240 $ 4.18 Options exercisable at end of year 230 $ 4.18 240 $ 4.18
Schedule of stock options by exercise price range	Stock options outstanding as of December 31, 2017 were as follows (number of shares in thousands): Options Outstanding Options Exercisable Range of Number Outstanding Weighted Average Remaining Contractual Life (yrs.) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 3.74 219 5.47 $ 3.74 219 $ 3.74 $ 12.90 11 3.59 $ 12.90 11 $ 12.90
Schedule of unvested restricted stock activity	The Company granted to certain employees and directors shares of restricted stock under its 2006 and 2016 Stock Incentive Plans. A summary of unvested restricted stock activity is as follows (shares in thousands): Number of Weighted Unvested at December 31, 2014 390 $ 8.71 Issued 307 $ 10.16 Vested (220 ) $ 7.94 Canceled (14 ) $ 10.08 Unvested at December 31, 2015 463 $ 10.00 Issued 742 $ 5.24 Vested (250 ) $ 9.01 Canceled (25 ) $ 6.24 Unvested at December 31, 2016 930 $ 6.57 Issued 664 $ 6.65 Vested (480 ) $ 7.30 Canceled (37 ) $ 6.08 Unvested at December 31, 2017 1,077 $ 6.31
Schedule of stock-based compensation expense	Stock-based compensation expense related to employee and non-employee restricted stock and option grants recognized in selling, general and administrative expenses, were as follows (in thousands):\ Years Ended December 31, 2017 2016 2015 Employees $ 3,303 $ 2,173 $ 1,694 Non-employees 525 443 325 Total stock-based compensation expense $ 3,828 $ 2,616 $ 2,019

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES. (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments - Capital and Operating Leases	Future minimum lease payments required by non-cancelable leases in effect at December 31, 2017 were as follows (in thousands): Years Ended December 31, Capital Leases Operating Leases 2018 $ 613 $ 11,841 2019 45 9,236 2020 45 7,042 2021 34 4,074 2022 — 3,894 Thereafter — 5,530 Total minimum payments 737 $ 41,617 Amount representing interest (22 ) Obligations under capital leases 715 Obligations due within one year (592 ) Long-term obligations under capital leases $ 123

FAIR VALUE MEASUREMENTS. (Table

FAIR VALUE MEASUREMENTS. (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of fair value measurements	Benefit Plan Fair Percentage Value Level 1 Level 2 Level 3 Allocation Assets: Derivative financial instruments(1) $ 998 $ 998 $ — $ — Defined benefit plan assets(2) (pooled separate accounts): Large U.S. Equity(3) 3,748 — 3,748 — 27 % Small/Mid U.S. Equity(4) 2,018 — 2,018 — 14 % International Equity(5) 2,528 — 2,528 — 18 % Fixed Income(6) 5,664 — 5,664 — 41 % $ 14,956 $ 998 $ 13,958 $ — Liabilities: Derivative financial instruments(7) $ (2,307 ) $ (2,307 ) $ — $ — The following table summarizes recurring fair value measurements by level at December 31, 2016 (in thousands): Benefit Plan Fair Percentage Value Level 1 Level 2 Level 3 Allocation Assets: Derivative financial instruments(1) $ 978 $ 978 $ — $ — Defined benefit plan assets(2) (pooled separate accounts): Large U.S. Equity(3) 3,134 — 3,134 — 25 % Small/Mid U.S. Equity(4) 1,802 — 1,802 — 15 % International Equity(5) 2,006 — 2,006 — 16 % Fixed Income(6) 5,481 — 5,481 — 44 % $ 13,401 $ 978 $ 12,423 $ — Liabilities: Warrants(8) $ (651 ) $ — $ — $ (651 ) Derivative financial instruments(7) (4,115 ) (4,115 ) — — $ (4,766 ) $ (4,115 ) $ — $ (651 ) (1) Included in derivative assets in the consolidated balance sheets. (2) See Note 9 for accounting discussion. (3) This category includes investments in funds comprised of equity securities of large U.S. companies. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (4) This category includes investments in funds comprised of equity securities of small- and medium-sized U.S. companies. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (5) This category includes investments in funds comprised of equity securities of foreign companies including emerging markets. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (6) This category includes investments in funds comprised of U.S. and foreign investment-grade fixed income securities, high-yield fixed income securities that are rated below investment-grade, U.S. treasury securities, mortgage-backed securities, and other asset-backed securities. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (7) Included in derivative liabilities in the consolidated balance sheets. (8) Included in warrant liabilities at fair value in the consolidated balance sheets.
Schedule of significant assumptions	Significant assumptions used and related fair values for the warrants as of December 31, 2016 were as follows: Original Issuance Exercise Price Volatility Risk Free Interest Rate Term (years) Market Discount Warrants Outstanding Fair Value 07/3/2012 $ 6.09 40.9 % 0.62 % 0.50 11.3 % 211,000 $ 651,000
Schedule of level 3 fair value schedule	The changes in the Company’s fair value of its Level 3 inputs with respect to its warrants were as follows (in thousands): Warrants Balance, December 31, 2014 $ 1,986 Exercises of warrants (72 ) Expiration of warrants (527 ) Adjustments to fair value for the period (1,114 ) Balance, December 31, 2015 $ 273 Exercises of warrants (179 ) Adjustments to fair value for the period 557 Balance, December 31, 2016 $ 651 Exercises of warrants (178 ) Adjustments to fair value for the period (473 ) Balance, December 31, 2017 $ —

PARENT COMPANY FINANCIALS. (Tab

PARENT COMPANY FINANCIALS. (Tables)	12 Months Ended
	Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Schedule of balance sheets - parent company	Parent company financial statements for the periods covered in this report are set forth below. December 31, 2017 2016 ASSETS Current Assets: Cash and cash equivalents $ 5,314 $ 11,060 Receivables from subsidiaries 3,138 7,203 Other current assets 1,631 6,442 Total current assets 10,083 24,705 Property and equipment, net 1,071 1,433 Other Assets: Investments in subsidiaries 359,680 363,401 Pacific Ethanol West plant receivable 58,766 58,766 Other assets 1,565 1,110 Total other assets 420,011 423,277 Total Assets $ 431,165 $ 449,415 Current Liabilities: Accounts payable and accrued liabilities $ 2,218 $ 1,758 Payable to subsidiaries 625 1,568 Accrued PE Op Co. purchase 3,828 3,828 Other current liabilities 245 184 Total current liabilities 6,916 7,338 Long-term debt, net 67,530 53,360 Warrant liabilities at fair value — 651 Deferred tax liabilities 224 52 Other liabilities 56 124 Total Liabilities 74,726 61,525 Stockholders’ Equity: Preferred stock 1 1 Common and non-voting common stock 44 44 Additional paid-in capital 927,090 922,698 Accumulated other comprehensive loss (2,234 ) (2,620 ) Accumulated deficit (568,462 ) (532,233 ) Total Pacific Ethanol, Inc. stockholders’ equity 356,439 387,890 Total Liabilities and Stockholders’ Equity $ 431,165 $ 449,415
Schedule of statements of operations parent company	Years Ended December 31, 2017 2016 2015 Management fees from subsidiaries $ 11,904 $ 12,968 $ 9,857 Selling, general and administrative expenses 18,185 14,491 14,336 Asset impairment — — 1,970 Loss from operations (6,281 ) (1,523 ) (6,449 ) Fair value adjustments 473 (557 ) 1,641 Interest income 4,793 5,964 5,739 Interest expense (5,829 ) (240 ) (27 ) Other income (expense), net (95 ) 1,931 — Income (loss) before provision for income taxes (6,939 ) 5,575 904 Provision (benefit) for income taxes (321 ) (981 ) (10,034 ) Income (loss) before equity in earnings of subsidiaries (6,618 ) 6,556 10,938 Equity in losses of subsidiaries (28,346 ) (5,137 ) (29,724 ) Consolidated net income (loss) $ (34,964 ) $ 1,419 $ (18,786 )
Schedule of statements of cash flows parent company	For the Years Ended December 31, 2017 2016 2015 Operating Activities: Net income (loss) $ (34,964 ) $ 1,419 $ (18,786 ) Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: Equity in losses of subsidiaries 28,346 5,137 29,724 Dividends from subsidiaries 3,500 — — Depreciation and amortization 830 727 390 Fair value adjustments (473 ) 557 (1,641 ) Asset impairment — — 1,970 Deferred income taxes 169 (1,122 ) (14,260 ) Amortization of debt discounts 636 10 — Changes in operating assets and liabilities: Accounts receivables 4,065 7,302 (5,958 ) Other assets 4,356 4,647 (4,139 ) Accounts payable and accrued expenses 3,859 (3,741 ) 604 Accounts payable with subsidiaries (943 ) (9,385 ) 11,179 Net cash provided by (used in) operating activities $ 9,381 $ 5,551 $ (917 ) Investing Activities: Additions to property and equipment $ (468 ) $ (465 ) $ (1,483 ) Investments in subsidiaries (28,126 ) (50,886 ) — Purchase of PE OP Co. debt — (17,003 ) — Net cash used in investing activities $ (28,594 ) $ (68,354 ) $ (1,483 ) Financing Activities: Proceeds from issuances of senior notes $ 13,530 $ 53,350 $ — Proceeds from warrant stock option exercises 1,202 1,164 368 Preferred stock dividend payments (1,265 ) (1,269 ) (1,265 ) Net cash provided by (used in) financing activities $ 13,467 $ 53,245 $ (897 ) Net decrease in cash and cash equivalents (5,746 ) (9,558 ) (3,297 ) Cash and cash equivalents at beginning of period 11,060 20,618 23,915 Cash and cash equivalents at end of period $ 5,314 $ 11,060 $ 20,618

QUARTERLY FINANCIAL DATA. (Tabl

QUARTERLY FINANCIAL DATA. (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Schedule of quarterly financial data	The Company’s quarterly results of operations for the years ended December 31, 2017 and 2016 are as follows (in thousands). Certain of these calculations have been revised from the calculations previously reported to reflect the participating securities. First Second Third Fourth December 31, 2017: Net sales $ 386,340 $ 405,202 $ 445,442 $ 395,271 Gross profit (loss) $ (5,773 ) $ 1,653 $ 12,065 $ (2,014 ) Income (loss) from operations $ (11,223 ) $ (7,109 ) $ 3,345 $ (10,598 ) Net loss attributed to Pacific Ethanol, Inc. $ (12,636 ) $ (8,841 ) $ (202 ) $ (13,285 ) Preferred stock dividends $ (312 ) $ (315 ) $ (319 ) $ (319 ) Net loss available to common stockholders $ (12,948 ) $ (9,156 ) $ (521 ) $ (13,604 ) Basic and diluted loss per common share $ (0.31 ) $ (0.22 ) $ (0.01 ) $ (0.32 ) First Second Third Fourth December 31, 2016: Net sales $ 342,373 $ 422,860 $ 417,806 $ 441,719 Gross profit $ 1,668 $ 18,355 $ 7,021 $ 27,314 Income (loss) from operations $ (7,248 ) $ 11,556 $ 393 $ 18,808 Net income (loss) attributed to Pacific Ethanol, Inc. $ (13,226 ) $ 5,086 $ (3,518 ) $ 13,077 Preferred stock dividends $ (315 ) $ (315 ) $ (319 ) $ (320 ) Income allocated to participating securities $ — $ (71 ) $ — $ (189 ) Net income (loss) available to common stockholders $ (13,541 ) $ 4,700 $ (3,837 ) $ 12,569 Basic and diluted income (loss) per common share $ (0.32 ) $ 0.11 $ (0.09 ) $ 0.30

ORGANIZATION AND SIGNIFICANT 40

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. (Details) - Sales [Member]	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Customer A [Member]
Concentration risk percentage	16.00%	17.00%	12.00%
Customer C [Member]
Concentration risk percentage	6.00%	6.00%	12.00%
Customer B [Member]
Concentration risk percentage	11.00%	12.00%	15.00%

ORGANIZATION AND SIGNIFICANT 41

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. (Details 1) - Purchases [Member]	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Supplier C [Memebr]
Concentration percentage	10.00%	8.00%	9.00%
Supplier B [Member]
Concentration percentage	13.00%	4.00%
Supplier A [Member]
Concentration percentage	14.00%	13.00%	19.00%
Supplier D [Memebr]
Concentration percentage	9.00%	13.00%	13.00%

ORGANIZATION AND SIGNIFICANT 42

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. (Details 2) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 35,652	$ 33,773
Work in progress	8,807	7,092
Raw materials	7,601	6,571
Low-carbon and RIN credits	7,952	10,926
Other	1,538	1,708
Total inventories	$ 61,550	$ 60,070

ORGANIZATION AND SIGNIFICANT 43

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. (Details 3)	12 Months Ended
	Dec. 31, 2017
Building [Member]
Estimated useful lives	P40Y
Facilities and plant equipment [Member] | Minimum [Member]
Estimated useful lives	P10Y
Facilities and plant equipment [Member] | Maximum [Member]
Estimated useful lives	P25Y
Other equipment, vehicles and furniture [Member] | Minimum [Member]
Estimated useful lives	P5Y
Other equipment, vehicles and furniture [Member] | Maximum [Member]
Estimated useful lives	P10Y

ORGANIZATION AND SIGNIFICANT 44

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. (Details 4) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Loss Numerator
Net income (loss) attributed to Pacific Ethanol, Inc.	$ (13,285)	$ (202)	$ (8,841)	$ (12,636)	$ 13,077	$ (3,518)	$ 5,086	$ (13,226)	$ (34,964)	$ 1,419	$ (18,786)
Less: Preferred stock dividends	(319)	(319)	(315)	(312)	(320)	(319)	(315)	(315)	(1,265)	(1,269)	(1,265)
Less: Allocated to participating securities					(189)	0	(71)	0		(2)
Basic income per share:
Income available to common stockholders, basic	$ (13,604)	$ (521)	$ (9,156)	$ (12,948)	$ 12,569	$ (3,837)	$ 4,700	$ (13,541)	$ (36,229)	148	$ (20,051)
Diluted income per share:
Income available to common stockholders, diluted										$ 148
Shares Denominator
Shares available to common stockholders - basic									42,745	42,182	33,173
Incremental shares - Options										69
Shares available to common stockholders - diluted									42,745	42,251	33,173
Per-Share Amount
Per-Share amount - basic									$ (0.85)	$ 0	$ (0.60)
Per-Shares amount - diluted									$ (0.85)	$ 0	$ (0.6)

ORGANIZATION AND SIGNIFICANT 45

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Numbershares	Dec. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)shares	Dec. 15, 2016	Jul. 31, 2015Number
Ethanol production capacity per year	605 million gallons per year
Ethanol market capacity per year	markets nearly 1.0 billion gallons of ethanol
Other products produced per year	produces over 3.0 million tons of co-products
Accounts receivable used as collateral	$ 64,501	$ 64,853
Allowance for doubtful accounts	19	331
Bad debt recovery	(5)	(306)	$ 354
Bad debt expense	5	306
Accounts receivable	$ 80,344	86,275
Employees covered by collective bargaining agreement	32.00%
Net inventory valuation adjustment	$ 2,700
Net sales when company acting as an agent	1,663	1,604	1,510
Amortization of deferred financing costs	503	137	$ 272
Unamortized deferred financing costs	$ 1,925	$ 1,708
Potentially dilutive shares from convertible securities outstanding | shares	719,000	704,000	817,000
Cash collateral balances		$ 4,331
Selling, General and Administrative Expenses [Member]
External selling costs		2,526	$ 2,956
Customer A, B and C [Member]
Accounts receivable	$ 21,584	$ 21,274
Concentration risk percentage	27.00%	25.00%
ACEC [Member]
Noncontrolling interest owned	26.07%	26.07%
Pacific Ethanol Central Plants [Member]
Number of ethanol plants | Number	4
Midwestern Ethanol Plants [Member]
Number of ethanol plants | Number					4
Pacific Aurora [Member]
Ownership interest	73.93%	73.93%		100.00%
Pacific Aurora [Member] | ACEC [Member]
Ownership interest	26.07%	26.07%

PACIFIC ETHANOL PLANTS. (Detail

PACIFIC ETHANOL PLANTS. (Details) - USD ($) $ in Thousands	Jul. 03, 2017	Dec. 31, 2016	Jul. 01, 2015	Jun. 30, 2015
ICP [Member]
Cash and equivalents	$ 426
Accounts receivable	11,636
Inventories	9,227
Other current assets	1,560
Total current assets	22,849
Property and equipment	61,128
Other assets	328
Total assets acquired	84,305
Accounts payable and accrued liabilities	5,683
Other current liabilities	1,486
Total current liabilities	7,169
Other non-current liabilities	209
Total liabilities assumed	7,378
Net assets acquired	76,927
Estimated goodwill
Total purchase price	$ 76,927
Pacific Aurora [Member]
Cash and equivalents		$ 1,453
Accounts receivable		16,804
Inventories		3,837
Other current assets		77
Total current assets		22,171
Property and equipment		115,759
Other assets		1,387
Total assets acquired		139,317
Accounts payable and accrued liabilities		20,152
Other current liabilities		2,045
Long-term debt - term debt		621
Total liabilities assumed		$ 22,818
PE Central [Member]
Cash and equivalents				$ 18,756
Accounts receivable			$ 10,800	10,430
Inventories				29,483
Other current assets				8,304
Total current assets				66,973
Property and equipment				312,781
Net deferred tax assets				12,159
Other assets				750
Total assets acquired				392,663
Accounts payable and accrued liabilities				27,780
Long-term debt - revolvers				13,721
Long-term debt - term debt				142,744
Pension plan liabilties				8,518
Other non-current liabilities				25,327
Total liabilities assumed				218,090
Net assets acquired				$ 174,573

PACIFIC ETHANOL PLANTS. (Deta47

PACIFIC ETHANOL PLANTS. (Details 1) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
ICP [Member]
Net sales - pro forma	$ 1,710,317	$ 1,802,159
Consolidated net income (loss) - pro forma	$ (42,589)	$ 8,329
Diluted net income (loss) per share - pro forma	$ (0.95)	$ 0.16
Diluted weighted-average shares - pro forma	$ 42,745	$ 42,251
PE Central [Member]
Net sales - pro forma			$ 1,484,676
Cost of goods sold - pro forma			1,469,512
Selling, general and administrative expenses - pro forma			34,735
Consolidated net income (loss) - pro forma			$ (34,136)
Diluted net income (loss) per share - pro forma			$ (0.81)
Diluted weighted-average shares - pro forma			$ 42,053

PACIFIC ETHANOL PLANTS. (Deta48

PACIFIC ETHANOL PLANTS. (Details Narrative) - USD ($) $ in Thousands	Jul. 03, 2017	Dec. 15, 2016	Jul. 01, 2015	May 31, 2015	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Apr. 30, 2015
Ethanol production capacity per year														605 million gallons per year
Net Revenue					$ 395,271	$ 445,442	$ 405,202	$ 386,340	$ 441,719	$ 417,806	$ 422,860	$ 342,373		$ 1,632,255	$ 1,624,758	$ 1,191,176
Pre-tax income														(38,395)	545	(28,907)
Gain on settlement														$ 31,516	$ 30,849	26,368
Pacific Aurora [Member]
Equity interest owned		100.00%			73.93%				73.93%					73.93%	73.93%
Cash received in sale of subsidiary		$ 30,000
Description of agreement closed term		(i) PE Central contributed to Pacific Aurora 100% of the equity interests of its wholly-owned subsidiaries, Pacific Ethanol Aurora East, LLC (“AE”) and Pacific Ethanol Aurora West, LLC (“AW”), which owned the Company’s Aurora East and Aurora West ethanol plants, respectively, in exchange for an 88.15% ownership interest in Pacific Aurora, and (ii) ACEC contributed to Pacific Aurora its grain elevator adjacent to the Aurora East and Aurora West properties and related grain handling assets, including the outer rail loop and the real property on which they are located, in exchange for an 11.85% ownership interest in Pacific Aurora.
Ownership interest sold		14.22%
ACEC contribution in assets					$ 16,500									$ 16,500
ACEC additional cash contribution					$ 30,000									30,000
Additional paid in capital for book value and contribution and sale														$ 16,200
Minimum working capital		$ 15,000
Pacific Aurora [Member] | ACEC [Member]
Equity interest owned					26.07%				26.07%					26.07%	26.07%
ICP [Member]
Equity interest owned	100.00%
Cash received in sale of subsidiary	$ 30,000
Stock issued for acquisition, value	$ 46,900
Ethanol production capacity per year	90 million gallon per year
Accounts receivable	$ 11,636
Net Revenue														$ 75,900
Pre-tax income														3,700
Selling, general and administrative expenses														300
PE Central [Member]
Stock issued for acquisition, value			$ 174,600
Accounts receivable			$ 10,800														$ 10,430
Net Revenue													$ 299,000	610,500	$ 650,100
Pre-tax income													16,300	8,400	2,100
Selling, general and administrative expenses																1,400
Percentage of interests auquired			100.00%
Stock issued for acquisition, shares issued			17,800,000
Uncollectible accounts receivable from acquisition			$ 400
Litigation contingency accrual			$ 3,700
Litigation contingency paid														$ 2,100
Gain on settlement															$ 1,100
Effects of inventories and open contracts																8,700
PE Op Co. [Member]
Percentage of interests auquired				4.00%														96.00%
Ownership interest purchase in cash				$ 6,000
Reduction in noncontrolling interest													$ 4,400			4,400
Increase (decrease) in additional paid in capital due to acquisition																$ 600

INTERCOMPANY AGREEMENTS. (Detai

INTERCOMPANY AGREEMENTS. (Details Narrative) $ / shares in Units, $ in Thousands	Dec. 15, 2016$ / shares	Jul. 01, 2015Number$ / shares	Dec. 31, 2016USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Affiliate Management Agreement [Member]
Agreement term		1 year
Agreement renewal term		1 year
Description of agreement termination		Pacific Ethanol may terminate the AMA, and any subsidiary may terminate the AMA, at any time by providing at least 90 days prior notice of such termination.
Revenues from related party				$ 11,904	$ 12,968	$ 9,857
Ethanol Marketing Agreement [Member] | Kinergy Marketing LLC [Member]
Agreement term		1 year
Agreement renewal term		1 year
Number of plants | Number		9
Description of agreement terms		(i) the estimated purchase price payable by the third-party purchaser of the ethanol, minus (ii) the estimated amount of transportation costs to be incurred, minus (iii) the estimated incentive fee payable to Kinergy, which equals 1% of the aggregate third-party purchase price, provided that the marketing fee shall not be less than $0.015 per gallon and not more than $0.0225 per gallon.
Revenues from related party				8,464	8,029	5,262
Corn Procurement and Handling Agreement [Member] | Pacific Ag. Products, LLC [Member]
Agreement term	1 year
Agreement renewal term	1 year
Description of agreement terms		Each facility appointed PAP as its exclusive agent to solicit, negotiate, enter into and administer, on its behalf, corn supply arrangements to procure the corn necessary to operate its facility.
Services fees (per bushel) | $ / shares	$ 0.03	$ 0.045
Revenues from related party				4,245	4,386	2,910
New Grain Procurement Agreement [Member] | Pacific Aurora [Member] | ACEC [Member]
Agreement term	1 year
Agreement renewal term	1 year
Services fees (per bushel) | $ / shares	$ 0.03
Grain procurement expenses			$ 107	$ 816
Distillers Grains Marketing Agreements [Member] | Pacific Ag. Products, LLC [Member]
Description of agreement terms				Within ten days after a plant delivers co-products to PAP, the plant is paid an amount equal to (i) the estimated purchase price payable by the third-party purchaser of the co-products, minus (ii) the estimated amount of transportation costs to be incurred, minus (iii) the estimated amount of fees and taxes payable to governmental authorities in connection with the tonnage of the co-products produced or marketed, minus (iv) the estimated incentive fee payable to the Company, which equals (a) 5% of the aggregate third-party purchase price for wet corn gluten feed, wet distillers grains, corn condensed distillers solubles and distillers grains with solubles, or (b) 1% of the aggregate third-party purchase price for corn gluten meal, dry corn gluten feed, dry distillers grains, corn germ and corn oil. Each distillers grains marketing agreement had an initial term of one year and successive one year renewal periods at the option of the individual plant.
Revenues from related party				$ 6,020	$ 6,047	$ 4,438

SEGMENTS. (Details)

SEGMENTS. (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net Sales	$ 395,271	$ 445,442	$ 405,202	$ 386,340	$ 441,719	$ 417,806	$ 422,860	$ 342,373	$ 1,632,255	$ 1,624,758	$ 1,191,176
Cost of goods sold									1,626,324	1,570,400	1,180,810
Income (loss) before provision for income taxes									(38,395)	545	(28,907)
Depreciation and amortization									38,651	35,441	23,632
Interest expense									12,938	22,406	12,594
Intersubsegment Eliminations [Member]
Net Sales									(10,362)	(9,198)	(5,262)
Cost of goods sold									(7,685)	(21,176)	(12,477)
Ethanol Production [Member]
Net Sales									1,104,620	1,046,976	710,201
Cost of goods sold									1,098,977	1,015,655	716,877
Income (loss) before provision for income taxes									(27,458)	(6,882)	(32,723)
Depreciation and amortization									37,637	34,528	23,091
Interest expense									5,887	20,794	11,969
Ethanol Production [Member] | Intersegment Net Sales [Member]
Net Sales									1,898	1,169
Ethanol Production [Member] | External Customers [Member]
Net Sales									1,102,722	1,045,807	710,201
Marketing and Distribution [Member]
Net Sales									537,997	586,980	486,237
Cost of goods sold									535,032	575,921	476,410
Income (loss) before provision for income taxes									(2,463)	4,517	3,200
Depreciation and amortization										3	151
Interest expense									1,271	1,404	625
Marketing and Distribution [Member] | Intersegment Net Sales [Member]
Net Sales									8,464	8,029	5,262
Marketing and Distribution [Member] | External Customers [Member]
Net Sales									529,533	578,951	480,975
Corporate Activities [Member]
Income (loss) before provision for income taxes									(8,474)	2,910	616
Depreciation and amortization									1,014	910	390
Interest expense									$ 5,780	$ 208

SEGMENTS. (Details 1)

SEGMENTS. (Details 1) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets	$ 720,296	$ 708,238
Ethanol Production [Member]
Assets	583,696	542,688
Marketing and Distribution [Member]
Assets	127,242	146,356
Corporate Assets [Member]
Assets	$ 9,358	$ 19,194

SEGMENTS. (Details Narrative)

SEGMENTS. (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Number	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Number of operating segments | Number	2
Ethanol Production [Member]
Management fees	$ 9,744	$ 9,968	$ 5,957
Marketing and Distribution [Member]
Management fees	$ 2,160	$ 3,000	$ 3,900

PROPERTY AND EQUIPMENT. (Detail

PROPERTY AND EQUIPMENT. (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment, Gross	$ 658,356	$ 577,613
Accumulated Depreciation	(150,004)	(112,423)
Property, Plant and Equipment, Net	508,352	465,190
Facilities And Plant Equipment [Member]
Property, Plant and Equipment, Gross	601,156	530,735
Land [Member]
Property, Plant and Equipment, Gross	8,970	7,771
Other Equipment, Vehicles and Furniture [Member]
Property, Plant and Equipment, Gross	10,189	9,714
Construction in Progress [Member]
Property, Plant and Equipment, Gross	$ 38,041	$ 29,393

PROPERTY AND EQUIPMENT. (Deta54

PROPERTY AND EQUIPMENT. (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Depreciation expense	$ 38,651	$ 35,441	$ 23,632
Asset impairment			$ 1,970
Capital Investment Activities [Member]
Capitalized interest	$ 822	$ 1,307

INTANGIBLE ASSET. (Details Narr

INTANGIBLE ASSET. (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Intangible assets amount	$ 2,678	$ 2,678
Trade Names [Member] | Kinergy Marketing LLC [Member]
Intangible assets amount		$ 2,678

DERIVATIVES. (Details)

DERIVATIVES. (Details) - Non Designated Derivative Instruments [Member] - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Cash Collateral Balance [Member]
Derivative assets	$ 3,813	$ 4,331
Commodity Contracts [Member]
Derivative assets	998	978
Derivative liabilities	$ 2,307	$ 4,115

DERIVATIVES. (Details 1)

DERIVATIVES. (Details 1) - Non Designated Derivative Instruments [Member] - Commodity Contracts [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Realized Gains (Losses)	$ (4,165)	$ 1,386	$ (338)
Unrealized Gains (Losses)	2,088	(3,370)	(204)
Cost of goods sold [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Realized Gains (Losses)	(4,165)	1,386	(338)
Unrealized Gains (Losses)	$ 2,088	$ (3,370)	$ (204)

DERIVATIVES. (Details Narrative

DERIVATIVES. (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Recognized gains and losses due to change in fair value	$ (2,077)	$ (1,984)	$ (542)

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Long-term borrowings are summarized as follows
Total debt	$ 244,425	$ 201,862
Less: Unamortized debt discount	(1,409)	(1,626)
Less: unamortized debt financing costs	(1,925)	(1,708)
Less short-term portion	(20,000)	(10,500)
Long-term debt	221,091	188,028
Term Loan [Member] | Illinois Corn Processing, LLC [Member]
Long-term borrowings are summarized as follows
Line of credit		32,000
Term debt	22,500
Parent Notes Payable [Member]
Long-term borrowings are summarized as follows
Notes payable	68,948	55,000
Revolving Credit Facility [Member] | Illinois Corn Processing, LLC [Member]
Long-term borrowings are summarized as follows
Line of credit	18,000	0
Kinergy Marketing LLC [Member] | Line of Credit [Member]
Long-term borrowings are summarized as follows
Line of credit	49,477	49,862
Pacific Ethanol Pekin, Inc [Member] | Term Loan [Member]
Long-term borrowings are summarized as follows
Term debt	53,500	64,000
Pacific Ethanol Pekin, Inc [Member] | Revolving Credit Facility [Member]
Long-term borrowings are summarized as follows
Line of credit	32,000
Pacific Aurora [Member] | Line of Credit [Member]
Long-term borrowings are summarized as follows
Line of credit	$ 0	$ 1,000

DEBT (Details 1)

DEBT (Details 1) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
2,018	$ 20,000
2,019	88,948
2,020	20,000
2,021	16,000
2,022	99,477
Total debt	$ 244,425	$ 201,862

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($) $ in Thousands

Sep. 15, 2017

Sep. 01, 2017

Aug. 07, 2017

Jun. 30, 2017

May 20, 2017

Dec. 15, 2016

Dec. 12, 2016

Dec. 31, 2015

Dec. 15, 2015

Jul. 01, 2015

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Feb. 26, 2016

Debt discount

$ 1,409

$ 1,626

Principal balance

244,425

201,862

Term Loan [Member] | Illinois Corn Processing, LLC [Member]

Line of credit

32,000

A-1 Term Loan (Pacific Ethanol West Plants' Term Debt) [Member]

Line of credit

$ 17,003,000

$ 17,003,000

Description of maturity date

mature in June 2016

Debt retiremnt amount

$ 17,003,000

Increased in debt amount

58,766

58,766

$ 41,763

A-1 Term Loan (Pacific Ethanol Central Plants' Term Debt) [Member]

Debt maturity date

Sep. 24, 2017

Description of interest rate

Interest on the term loan facility accrued and could either be paid in cash at a rate of 10.5% per annum or paid in-kind at a rate of 15.0% per annum by adding such interest to the outstanding principal balance.

Line of credit

$ 142,744

Description of debt collateral

Secured through a first-priority lien on substantially all of the Pacific Ethanol Central Plants

Debt discount

$ 2,875

1,152

Paid in kind interest

9,451

Principal balance

$ 155,070,205

Repayment of debt

$ 155,070,205

Credit Agreement [Member] | Illinois Corn Processing, LLC [Member]

Description payment terms

Maintain working capital of not less than $8.0 million. In addition, ICP is required to maintain an annual debt coverage ratio of not less than 1.5 to 1.0 beginning for the year ending December 31, 2018.

Credit Agreement [Member] | Term Loan [Member] | Illinois Corn Processing, LLC [Member]

Debt face amount

$ 24,000

Description of interest rate

Accrues at a rate equal to 3.75% plus the one-month LIBOR index rate.

Principal payments

$ 1,500

Frequency of periodic payments

Quarterly

Description payment terms

Principal payments in sixteen equal consecutive quarterly installments of $1,500,000 each until September 20, 2021

Note Purchase Agreement [Member] | Notes Payable [Member] | Five Accredited Investors [Member]

Debt face amount

$ 50,000

Description of borrowing terms

Private offering for aggregate gross proceeds of 97% of the principal amount of the Notes sold.

Note Purchase Agreement [Member] | Total Notes Payable [Member] | Five Accredited Investors [Member]

Debt maturity date

Dec. 15, 2019

Description of interest rate

(i) the greater of 1% and the three-month LIBOR, plus 7.0% from the closing through December 14, 2017, (ii) the greater of 1% and LIBOR, plus 9% between December 15, 2017 and December 14, 2018, and (iii) the greater of 1% and LIBOR plus 11% between December 15, 2018 and the Maturity Date.

Debt default interest rate

2.00%

Description of debt collateral

Secured by a first-priority security interest in the equity interest held by Pacific Ethanol in its wholly-owned subsidiary, PE Op. Co., which indirectly owns the Company’s plants located on the West Coast.

Second Note Purchase Agreement [Member] | Notes Payable [Member] | Five Accredited Investors [Member]

Debt face amount

$ 13,900

Description of borrowing terms

Private offering for aggregate gross proceeds of 97% of the principal amount of the notes sold.

Revolving Credit Facility [Member] | Illinois Corn Processing, LLC [Member]

Line of credit

18,000

0

Revolving Credit Facility [Member] | Credit Agreement [Member] | Illinois Corn Processing, LLC [Member]

Maximum borrowing capacity

$ 18,000

Unused facility fees

0.75%

Kinergy Marketing LLC [Member] | Line of Credit [Member]

Maximum borrowing capacity

$ 100,000

Line of credit maturity date

Aug. 2, 2022

Description of interest rate

Interest accrues under the line of credit at a rate equal to (i) the three-month London Interbank Offered Rate (“LIBOR”), plus (ii) a specified applicable margin ranging between 1.50% and 2.00%.

Interest rate at end of period

3.44%

Interest margin rate

1.75%

Description of payment made to company

Payments that may be made by Kinergy to the Company as reimbursement for management and other services provided by the Company to Kinergy are limited under the terms of the credit facility to $1,500,000 per fiscal quarter.

Description of collateral

The credit facility is based on Kinergy’s eligible accounts receivable and inventory levels, subject to certain concentration reserves. The credit facility is subject to certain other sublimits, including inventory loan limits.

Unused borrowing capacity

$ 27,399

Line of credit

$ 49,477

49,862

Kinergy Marketing LLC [Member] | Line of Credit [Member] | Maximum [Member]

Unused facility fees

0.38%

Kinergy Marketing LLC [Member] | Line of Credit [Member] | Minimum [Member]

Unused facility fees

0.25%

Pacific Ag. Products, LLC [Member] | Line of Credit [Member]

Description of payment made to company

Payments that may be made by PAP to the Company as reimbursement for management and other services provided by the Company to PAP are limited under the terms of the credit facility to $500,000 per fiscal quarter.

Description of collateral

The credit facility also includes the accounts receivable of PAP as additional collateral

Pacific Ethanol Pekin, Inc [Member] | Credit Agreement [Member] | 1st Farm Credit Services [Member]

Description of interest rate

Annual rate equal to the 30-day LIBOR plus 3.75%, payable monthly

Description of debt covenant

Under the terms of the Pekin Credit Agreement, Pekin is required to maintain not less than $20.0 million in working capital and an annual debt coverage ratio of not less than 1.25 to 1.0.

Pacific Ethanol Pekin, Inc [Member] | Credit Agreement [Member] | 1st Farm Credit Services [Member] | Term Loan [Member]

Debt face amount

$ 64,000

Debt maturity date

Aug. 20, 2021

Pacific Ethanol Pekin, Inc [Member] | Amendment Credit Agreement [Member] | 1st Farm Credit Services [Member]

Description of interest rate

Increase the interest rate under the facilities by 25 basis points to an annual rate equal to the 30-day LIBOR plus 4.00%.

Principal payments

$ 3,500

Description of debt covenant

Maintain working capital of not less than $17.5 million from August 31, 2017 through December 31, 2017 and working capital of not less than $20.0 million from January 1, 2018 and continuing at all times thereafter. In addition, the required Debt Service Coverage Ratio was reduced to 0.15 to 1.00 for the fiscal year ending December 31, 2017.

Description of debt covenant subsequent

Working capital covenant requirement to be at least $13.0 million for the month ended February, 28, 2018.

Pacific Ethanol Pekin, Inc [Member] | Revolving Credit Facility [Member]

Line of credit

$ 32,000

Pacific Ethanol Pekin, Inc [Member] | Revolving Credit Facility [Member] | Credit Agreement [Member] | 1st Farm Credit Services [Member]

Maximum borrowing capacity

$ 32,000

Line of credit maturity date

Feb. 1, 2022

Unused facility fees

0.75%

Description of collateral

Secured by a first-priority security interest in all of Pekin’s assets under the terms of a Security Agreement

Principal payments

$ 3,500

Frequency of periodic payments

Quarterly

Description payment terms

Principal payment of $4.5 million at maturity on August 20, 2021

Pacific Aurora [Member] | Line of Credit [Member]

Line of credit

$ 0

$ 1,000

Pacific Aurora [Member] | Revolving Credit Facility [Member] | Credit Agreement [Member] | CoBank [Member]

Maximum borrowing capacity

$ 30,000

Line of credit maturity date

Feb. 1, 2022

Description of interest rate

Annual rate equal to the 30-day LIBOR plus 4.0%, payable monthly.

Unused facility fees

0.75%

Description of collateral

Secured by a first-priority security interest in all of Pacific Aurora’s assets under the terms of a Security Agreement

Description of debt covenant

Maintain working capital of not less than $18.0 million from September 30, 2017 through February 28, 2018 and working capital of not less than $20.0 million from March 1, 2018 and continuing at all times thereafter. In addition, the required Debt Service Coverage Ratio was reduced to 0.00 to 1.00 for the fiscal year ending December 31, 2017 and 1.50 to 1.00 for the fiscal year ending December 31, 2018

Maintain not less than $22.5 million in working capital through June 30, 2017, not less than $24.0 million in working capital after June 30, 2017, and an annual debt coverage ratio of not less than 1.50 to 1.00.

Description of borrowing terms

Borrowing availability under the Pacific Aurora Credit Facility automatically declines by $2.5 million on the first day of each June and December beginning on June 1, 2017 through and including December 1, 2020.

PENSION PLANS. (Details)

PENSION PLANS. (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Components of net periodic benefit costs are as follows:
Loss (gain) recognized in other comprehensive income (expense)	$ (386)	$ 3,660	$ (1,040)
Retirement Plan [Member]
Changes in plan assets:
Fair value of plan assets, beginning	12,423	12,567	13,180
Actual gains (losses)	1,722	523	(298)
Benefits paid	(665)	(667)	(315)
Company contributions	478
Participant contributions
Fair value of plan assets, ending	13,958	12,423	12,567
Amounts recognized in the consolidated balance sheets:
Other liabilities	(5,700)	(6,032)	(3,985)
Accumulated other comprehensive loss (income)	726	1,047	(885)
Components of net periodic benefit costs are as follows:
Service cost	391	223	211
Interest cost	750	686	338
Expected return on plan assets	(674)	(794)	(500)
Net periodic benefit cost	467	115	49
Loss (gain) recognized in other comprehensive income (expense)	$ (321)	$ 1,932	$ (885)
Assumptions used in computation benefit obligations:
Discount rate	3.60%	4.15%	4.23%
Expected long-term return on plan assets	6.00%	6.75%	7.75%

PENSION PLANS. (Details 1)

PENSION PLANS. (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Components of net periodic benefit costs are as follows:
Loss (gain) recognized in other comprehensive income (expense)	$ (386)	$ 3,660	$ (1,040)
Postretirement Plan [Member]
Changes in plan assets:
Fair value of plan assets, beginning
Benefits paid	(179)	(184)	(35)
Company contributions	157	163	20
Participant contributions	22	22	15
Accumulated/projected benefit obligation	5,565	5,371
Fair value of plan assets, ending
Funded status, (underfunded)/overfunded	(5,565)	(5,371)
Amounts recognized in the consolidated balance sheets:
Accrued liabilties	(240)	(310)
Other liabilities	(5,325)	(5,061)
Accumulated other comprehensive loss (income)	1,508	1,573
Components of net periodic benefit costs are as follows:
Service cost	84	48	32
Interest cost	198	139	65
Expected return on plan assets	134
Net periodic benefit cost	416	187	97
Loss (gain) recognized in other comprehensive income (expense)	$ (65)	$ 1,728	$ (155)
Assumptions used in computation benefit obligations:
Discount rate	3.80%	3.95%	3.67%

PENSION PLANS. (Details 2)

PENSION PLANS. (Details 2) $ in Thousands	Dec. 31, 2017USD ($)
Retirement Plan [Member]
2,018	$ 730
2,019	740
2,020	780
2,021	790
2,022	830
2023-27	4,820
Total expected benefit payments	8,690
Postretirement Plan [Member]
2,018	240
2,019	270
2,020	300
2,021	340
2,022	330
2023-27	2,120
Total expected benefit payments	$ 3,600

PENSION PLANS. (Details Narrati

PENSION PLANS. (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Retirement Plan [Member]
Expected contributions by the company	$ 1,000
Expected net periodic benefit cost for 2017	740
Postretirement Plan [Member]
Expected net periodic benefit cost for 2017	$ 270
Percentage of pre-Medicare postretirement medical benefits	7.00%
Percentage of adjusting rate assumed health care	For purposes of determining the cost and obligation for pre-Medicare postretirement medical benefits, a 7.0% annual rate of increase in the per capita cost of covered benefits (i.e., health care trend rate) was assumed for the plan in 2018, adjusting to a rate of 4.5% in 2026.

INCOME TAXES. (Details)

INCOME TAXES. (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Current provision (benefit)	$ (490)	$ 141	$ (8,011)
Deferred provision (benefit)	169	(1,122)	(2,023)
Total	$ (321)	$ (981)	$ (10,034)

INCOME TAXES. (Details 1)

INCOME TAXES. (Details 1)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective income tax rate reconciliation
Statutory rate	35.00%	35.00%	35.00%
State income taxes, net of federal benefit	4.00%	6.40%	9.20%
Change in valuation allowance	(34.50%)	(298.80%)	(4.20%)
Impact of Federal tax rate change on deferreds	(28.40%)
Impact of Federal tax rate change on valuation allowance	29.40%
Fair value adjustments and warrant inducements	0.40%	37.20%	2.00%
Noncontrolling interests	(3.20%)
Domestic production gross receipts deduction			(2.90%)
Section 382 reduction to loss carryover			0.10%
Stock compensation	(0.10%)	58.80%	(0.80%)
Non-deductible items	(0.20%)	8.90%	(0.50%)
Other	(1.60%)	(27.50%)	(3.20%)
Effective rate	0.80%	(180.00%)	34.70%

INCOME TAXES. (Details 2)

INCOME TAXES. (Details 2) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Net operating loss carryforward	$ 40,989	$ 45,709
R&D and AMT credits	1,797	2,465
Railcar contracts	1,415	3,348
Stock-based compensation	738	946
Allowance for doubtful accounts and other assets	637	856
Derivatives	267	1,228
Pension liability	2,939	2,204
Other	2,097	4,316
Total deferred tax assets	50,879	61,072
Deferred tax liabilities:
Property and equipment	(25,194)	(45,757)
Intangibles	(749)	(1,091)
Debt basis
Other	(521)	(1,593)
Total deferred tax liabilities	(26,464)	(48,441)
Valuation allowance	(24,639)	(12,683)	$ (39,838)
Net deferred tax liabilities	$ (224)	$ (52)

INCOME TAXES. (Details 3)

INCOME TAXES. (Details 3) $ in Thousands	Dec. 31, 2017USD ($)
Federal [Member]
Net operating loss carryforward	$ 154,589
Federal [Member] | 2018-2022 [Member]
Net operating loss carryforward
Federal [Member] | 2023-2027 [Member]
Net operating loss carryforward	13,038
Federal [Member] | 2028-2032 [Member]
Net operating loss carryforward	119,526
Federal [Member] | 2032-2036 [Member]
Net operating loss carryforward	112,248
Federal [Member] | 2017 [Member]
Net operating loss carryforward	59,675
Federal [Member] | 2018 [Member]
Net operating loss carryforward	6,441
Federal [Member] | 2020 [Member]
Net operating loss carryforward	6,308
Federal [Member] | Thereafter [Member]
Net operating loss carryforward	69,483
Federal [Member] | 2019 [Member]
Net operating loss carryforward	6,374
Federal [Member] | 2021 [Member]
Net operating loss carryforward	6,308
State [Member]
Net operating loss carryforward	148,921
State [Member] | 2018-2022 [Member]
Net operating loss carryforward	22,425
State [Member] | 2023-2027 [Member]
Net operating loss carryforward	2,945
State [Member] | 2028-2032 [Member]
Net operating loss carryforward	65,921
State [Member] | 2032-2036 [Member]
Net operating loss carryforward	80,055
State [Member] | 2017 [Member]
Net operating loss carryforward	82,892
State [Member] | 2018 [Member]
Net operating loss carryforward	5,372
State [Member] | 2020 [Member]
Net operating loss carryforward	5,318
State [Member] | Thereafter [Member]
Net operating loss carryforward	44,676
State [Member] | 2019 [Member]
Net operating loss carryforward	5,345
State [Member] | 2021 [Member]
Net operating loss carryforward	$ 5,318

INCOME TAXES. (Details 4)

INCOME TAXES. (Details 4)	12 Months Ended
	Dec. 31, 2016
US Treasury and Government [Member]
Tax Years still open to audit	2014-2016
Arizona [Member]
Tax Years still open to audit	2014-2016
California [Member]
Tax Years still open to audit	2013-2016
Colorado [Member]
Tax Years still open to audit	2013-2016
Idaho [Member]
Tax Years still open to audit	2014-2016
Illinois [Member]
Tax Years still open to audit	2014-2016
Indiana [Member]
Tax Years still open to audit	2014-2016
Iowa [Member]
Tax Years still open to audit	2014-2016
Kansas [Member]
Tax Years still open to audit	2014-2016
Minnesota [Member]
Tax Years still open to audit	2014-2016
Missouri [Member]
Tax Years still open to audit	2014-2016
Nebraska [Member]
Tax Years still open to audit	2014-2016
Oklahoma [Member]
Tax Years still open to audit	2014-2016
Oregon [Member]
Tax Years still open to audit	2014-2016
Texas [Member]
Tax Years still open to audit	2013-2016

INCOME TAXES. (Details Narrativ

INCOME TAXES. (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Valuation allowance	$ 24,639	$ 12,683	$ 39,838
Change in valuation allowance	$ 11,956	(27,155)
Tax benefit related to adjustments to tax asset valuation allowance from prior year			1,500
Revised federal income tax rate	21.00%
Valuation allowance absent of deferred tax liability	$ (10,545)
Decreased gross deferred assets	(10,170)
Accrued tax uncertainties	$ 235
Description of income tax	Other significant provisions of the TCJA that are not yet effective but may impact income taxes in future years include: additional limitations on certain meals and entertainment expenses, the inclusion of commissions and performance-based compensation in determining the excessive compensation limitation, limitation on the current deductibility of net interest expense in excess of 30% of adjusted taxable income, and a limitation of net operating losses generated after fiscal 2018 to 80% of taxable income.
Income tax benefit	$ (321)	(981)	$ (10,034)
PE Central [Member]
Change in valuation allowance		(13,500)
Pacific Aurora [Member]
Change in valuation allowance		$ (11,500)

PREFERRED STOCK. (Details Narra

PREFERRED STOCK. (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Preferred undesignated shares authorized	6,734,835
Preferred shares authorized	10,000,000	10,000,000
Preferred stock dividends accrued and paid	$ 1,265	$ 1,269	$ 1,265
Series A Preferred Stock
Preferred shares authorized	1,684,375	1,684,375
Preferred shares outstanding	0	0
Cumulative dividends payable in cash	5.00%
Series B Preferred Stock
Preferred shares authorized	1,580,790	1,580,790
Preferred shares outstanding	926,942	926,942
Preferred stock convertible into common shares, common shares	634,641
Cumulative dividends payable in cash	7.00%
Liquidation preference stock holder	$ 19.50

COMMON STOCK AND WARRANTS. (Det

COMMON STOCK AND WARRANTS. (Details) - Warrants [Member] - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Number of Shares
Begining Balance	244,000	382,000	856,000
Warrants exercised	(191,000)	(138,000)	(42,000)
Warrants expired	(49,000)		(432,000)
Ending Balance	4,000	244,000	382,000
Price per Share
Begining Balance
Warrants exercised	6.09	8.43	8.85
Warrants expired			8.85
Ending Balance	735
Weighted Average Exercise Price
Begining Balance	106.72	70.87	36.55
Warrants exercised	6.09	8.43	8.85
Warrants expired	444		8.85
Ending Balance	735	106.72	70.87
Minimum [Member]
Price per Share
Begining Balance	6.09	6.09	6.09
Warrants exercised
Ending Balance	6.09	6.09	6.09
Maximum [Member]
Price per Share
Begining Balance	735	735	735
Warrants exercised
Ending Balance	$ 735	$ 735	$ 735

COMMON STOCK AND WARRANTS. (D74

COMMON STOCK AND WARRANTS. (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Warrant inducements	$ 0	$ 0	$ 0
Fair value adjustments for warrants	$ (473)	$ 557	$ (1,641)

STOCK-BASED COMPENSATION. (Deta

STOCK-BASED COMPENSATION. (Details) - Stock Options [Member] - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of Shares
Begining Balance	240,000	240,000
Expired	(10,000)
Ending Balance	230,000	240,000
Options exercisable at end of year	230,000	240,000
Weighted Average Exercise Price
Begining Balance	$ 4.18	$ 4.18
Expired	3.74
Ending Balance	4.18	4.18
Options exercisable at end of year	$ 4.18	$ 4.18

STOCK-BASED COMPENSATION. (De76

STOCK-BASED COMPENSATION. (Details 1)	12 Months Ended
	Dec. 31, 2017$ / sharesshares
$ 12.90
Number Outstanding | shares	11,000
Weighted Average Remaining Contractual Life (yrs)	3 years 7 months 2 days
Weighted Average Exercise Price | $ / shares	$ 12.90
Number Exercisable | shares	11,000
Weighted Average Exercise Price | $ / shares	$ 12.90
$ 3.74
Number Outstanding | shares	219,000
Weighted Average Remaining Contractual Life (yrs)	5 years 5 months 19 days
Weighted Average Exercise Price | $ / shares	$ 3.74
Number Exercisable | shares	219,000
Weighted Average Exercise Price | $ / shares	$ 3.74

STOCK-BASED COMPENSATION. (De77

STOCK-BASED COMPENSATION. (Details 2) - Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Number of Shares
Begining Balance	930,000	463,000	390,000
Issued	664,000	742,000	307,000
Vested	(480,000)	(250,000)	(220,000)
Canceled	(37,000)	(25,000)	(14,000)
Ending Balance	1,077,000	930,000	463,000
Weighted Average Grant Date Fair Value
Begining Balance	$ 6.57	$ 10	$ 8.71
Issued	6.65	5.24	10.16
Vested	7.30	9.01	7.94
Canceled	6.08	6.24	10.08
Ending Balance	$ 6.31	$ 6.57	$ 10

STOCK-BASED COMPENSATION. (De78

STOCK-BASED COMPENSATION. (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Total stock-based compensation expense	$ 3,828	$ 2,616	$ 2,019
Employees [Member]
Total stock-based compensation expense	3,303	2,173	1,694
Non-Employees [Member]
Total stock-based compensation expense	$ 525	$ 443	$ 325

STOCK-BASED COMPENSATION. (De79

STOCK-BASED COMPENSATION. (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Total compensation cost related to unvested awards	$ 4,122
Compensation cost weighted average period	1 year 6 months 14 days
2006 Stock Incentive Plan [Member]
Shares authorized	1,715,000
2016 Stock Incentive Plan [Member]
Shares authorized	1,150,000
Stock Options [Member]
Intrinsic values of outstanding options	$ 84	$ 1,319
Fair value of stock vested	$ 3,210	$ 1,142	$ 2,603

COMMITMENTS AND CONTINGENCIES80

COMMITMENTS AND CONTINGENCIES. (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Capital Leases
2,018	$ 613
2,019	45
2,020	45
2,021	34
2,022
Thereafter
Total minimum payments	737
Amount representing interest	(22)
Obligations under capital leases	715
Obligations due within one year	(592)	$ (794)
Long-term obligations under capital leases	123	$ 547
Operating Leases
2,018	11,841
2,019	9,236
2,020	7,042
2,021	4,074
2,022	3,894
Thereafter	5,530
Total minimum payments	$ 41,617

COMMITMENTS AND CONTINGENCIES81

COMMITMENTS AND CONTINGENCIES. (Details Narrative) - USD ($) $ in Thousands	Dec. 29, 2016	Feb. 27, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Rent expense			$ 16,572	$ 16,253	$ 10,476
Capital improvement commitments			4,100
Gain on litigation settlement			3,600
Proceeds from legal settlement			3,900
Solar Project [Member]
Capital improvement commitments			10,000
Capital expenditures			7,700
Additional property tax payments			$ 900
property tax rate			5.60%
Western Sugar Contract [Member]
Litigation reserve				2,800
Gain on litigation settlement				$ 1,100
Settlement cliam	$ 1,700
Amount of expectation damages		$ 8,600
Corn contract [Member]
Purchase commitments			$ 21,134
Ethanol contracts [Member]
Sales commitments			$ 90,389
Indexed-price contracts to sell			310,289,000 gallons
Purchase commitments			$ 8,932
Indexed-price purchase contracts			16,149,000 gallons
Co-product contracts [Member]
Sales commitments			$ 35,600

FAIR VALUE MEASUREMENTS. (Detai

FAIR VALUE MEASUREMENTS. (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets:
Assets	$ 14,956	$ 13,401
Liabilities:
Liabilities		(4,766)
Warrants [Member]
Liabilities:
Liabilities		(651)
Defined Benefit Plan Assets Fixed Income [Member]
Assets:
Assets	$ 5,664	$ 5,481
Liabilities:
Benefit plan allocation percentage	41.00%	44.00%
Defined Benefit Plan Assets International Equity [Member]
Assets:
Assets	$ 2,528	$ 2,006
Liabilities:
Benefit plan allocation percentage	18.00%	16.00%
Defined Benefit Plan Assets Small/Mid U.S. Equity [Member]
Assets:
Assets	$ 2,018	$ 1,802
Liabilities:
Benefit plan allocation percentage	14.00%	15.00%
Derivative Financial Instrument [Member]
Assets:
Assets	$ 998	$ 978
Liabilities:
Liabilities	(2,307)	(4,115)
Defined Benefit Plan Assets Large U.S. Equity [Member]
Assets:
Assets	$ 3,748	$ 3,134
Liabilities:
Benefit plan allocation percentage	27.00%	25.00%
Level 3 [Member]
Assets:
Assets
Liabilities:
Liabilities		(651)
Level 3 [Member] | Warrants [Member]
Liabilities:
Liabilities		(651)
Level 3 [Member] | Defined Benefit Plan Assets Fixed Income [Member]
Assets:
Assets
Level 3 [Member] | Defined Benefit Plan Assets International Equity [Member]
Assets:
Assets
Level 3 [Member] | Defined Benefit Plan Assets Small/Mid U.S. Equity [Member]
Assets:
Assets
Level 3 [Member] | Derivative Financial Instrument [Member]
Assets:
Assets
Liabilities:
Liabilities
Level 3 [Member] | Defined Benefit Plan Assets Large U.S. Equity [Member]
Assets:
Assets
Level 2 [Member]
Assets:
Assets	13,958	12,423
Liabilities:
Liabilities
Level 2 [Member] | Warrants [Member]
Liabilities:
Liabilities
Level 2 [Member] | Defined Benefit Plan Assets Fixed Income [Member]
Assets:
Assets	5,664	5,481
Level 2 [Member] | Defined Benefit Plan Assets International Equity [Member]
Assets:
Assets	2,528	2,006
Level 2 [Member] | Defined Benefit Plan Assets Small/Mid U.S. Equity [Member]
Assets:
Assets	2,018	1,802
Level 2 [Member] | Derivative Financial Instrument [Member]
Assets:
Assets
Liabilities:
Liabilities
Level 2 [Member] | Defined Benefit Plan Assets Large U.S. Equity [Member]
Assets:
Assets	3,748	3,134
Level 1 [Member]
Assets:
Assets	998	978
Liabilities:
Liabilities	(2,307)	(4,115)
Level 1 [Member] | Warrants [Member]
Liabilities:
Liabilities
Level 1 [Member] | Defined Benefit Plan Assets Fixed Income [Member]
Assets:
Assets
Level 1 [Member] | Defined Benefit Plan Assets International Equity [Member]
Assets:
Assets
Level 1 [Member] | Defined Benefit Plan Assets Small/Mid U.S. Equity [Member]
Assets:
Assets
Level 1 [Member] | Derivative Financial Instrument [Member]
Assets:
Assets	998	978
Liabilities:
Liabilities	(2,307)	(4,115)
Level 1 [Member] | Defined Benefit Plan Assets Large U.S. Equity [Member]
Assets:
Assets

FAIR VALUE MEASUREMENTS. (Det83

FAIR VALUE MEASUREMENTS. (Details 1) - Original issuance 7/3/2012 $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Exercise price | $ / shares	$ 6.09
Volatility	40.90%
Risk free interest rate	0.62%
Term (years)	6 months
Market Discount	11.30%
Warrants Outstanding | shares	211,000
Fair value | $	$ 651

FAIR VALUE MEASUREMENTS. (Det84

FAIR VALUE MEASUREMENTS. (Details 2) - Level 3 [Member] - Warrants [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 651	$ 273	$ 1,986
Exercised warrants	(178)	(179)	(72)
Expiration of warrants			(527)
Adjustments to fair value for the period	(473)	557	(1,114)
Ending Balance		$ 651	$ 273

PARENT COMPANY FINANCIALS. (Det

PARENT COMPANY FINANCIALS. (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 49,489	$ 64,259	$ 51,550	$ 62,073
Other current assets	6,841	7,943
Total current assets	203,246	235,201
Property and equipment, net	508,352	465,190
Other Assets:
Other assets	6,020	5,169
Total Assets	720,296	708,238
Current Liabilities:
Total current liabilities	90,706	78,841
Long Term debt, net	244,425	201,862
Warrant liabilities at fair value	2,307	4,115
Other liabilities	6,396	6,101
Total Liabilities	336,596	289,977
Stockholders' Equity:
Common and non-voting common stock	44	40
Additional paid-in capital	927,090	922,698
AAccumulated other comprehensive loss	(2,234)	(2,620)
Accumulated deficit	(568,462)	(532,233)
Total Pacific Ethanol, Inc. stockholders' equity	356,439	387,890
Total Liabilities and Stockholders' Equity	720,296	708,238
Parent Company [Member]
Current Assets:
Cash and cash equivalents	5,314	11,060	$ 20,618	$ 23,915
Receivables from consolidated subsidiaries	3,138	7,203
Other current assets	1,631	6,442
Total current assets	10,083	24,705
Property and equipment, net	1,071	1,433
Other Assets:
Investments in subsidiaries	359,680	363,401
Pacific Ethanol West plant receivable	58,766	58,766
Other assets	1,565	1,110
Total other assets	420,011	423,277
Total Assets	431,165	449,415
Current Liabilities:
Accounts payable and accrued liabilities	2,218	1,758
Payable to subsidiaries	625	1,568
Accrued PE Op Co. purchase	3,828	3,828
Other current liabilities	245	184
Total current liabilities	6,916	7,338
Long Term debt, net	67,530	53,360
Warrant liabilities at fair value		651
Deferred tax liabilities	224	52
Other liabilities	56	124
Total Liabilities	74,726	61,525
Stockholders' Equity:
Preferred stock	1	1
Common and non-voting common stock	44	44
Additional paid-in capital	927,090	922,698
AAccumulated other comprehensive loss	(2,234)	(2,620)
Accumulated deficit	(568,462)	(532,233)
Total Pacific Ethanol, Inc. stockholders' equity	356,439	387,890
Total Liabilities and Stockholders' Equity	$ 431,165	$ 449,415

PARENT COMPANY FINANCIALS. (D86

PARENT COMPANY FINANCIALS. (Details 1) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Selling, general and administrative expenses									$ 31,516	$ 30,849	$ 26,368
Asset impairment											1,970
Loss from operations	$ (10,598)	$ 3,345	$ (7,109)	$ (11,223)	$ 18,808	$ 393	$ 11,556	$ (7,248)	(25,585)	23,509	(17,972)
Interest expense									(12,938)	(22,406)	(12,594)
Income (loss) before provision for income taxes									(38,395)	545	(28,907)
Provision (benefit) for income taxes									(321)	(981)	(10,034)
Consolidated net income (loss)	$ (13,285)	$ (202)	$ (8,841)	$ (12,636)	$ 13,077	$ (3,518)	$ 5,086	$ (13,226)	(34,964)	1,419	(18,786)
Parent Company [Member]
Management fees from subsidiaries									11,904	12,968	9,857
Selling, general and administrative expenses									18,185	14,491	14,336
Asset impairment											1,970
Loss from operations									(6,281)	(1,523)	(6,449)
Fair value adjustments									473	(557)	1,641
Interest income									4,793	5,964	5,739
Interest expense									(5,829)	(240)	(27)
Other income (expense), net									(95)	1,931
Income (loss) before provision for income taxes									(6,939)	5,575	904
Provision (benefit) for income taxes									(321)	(981)	(10,034)
Income (loss) before equity in earnings of subsidiaries									(6,618)	6,556	10,938
Equity in losses of subsidiaries									(28,346)	(5,137)	(29,724)
Consolidated net income (loss)									$ (34,964)	$ 1,419	$ (18,786)

PARENT COMPANY FINANCIALS. (D87

PARENT COMPANY FINANCIALS. (Details 2) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Activities:
Net income (loss)	$ (13,285)	$ (202)	$ (8,841)	$ (12,636)	$ 13,077	$ (3,518)	$ 5,086	$ (13,226)	$ (34,964)	$ 1,419	$ (18,786)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Fair value adjustments									(473)	557	(1,641)
Asset impairment											1,970
Deferred income taxes									169	(1,122)	(2,023)
Amortization of debt discounts									636	2,322	716
Changes in operating assets and liabilities:
Accounts receivables									17,562	(25,235)	(15,950)
Other assets									6,738	(3,973)	5,622
Accounts payable and accrued expenses									(5,538)	9,279	(10,045)
Net cash provided by (used in) operating activities									36,509	37,228	(27,993)
Investing Activities:
Additions to property and equipment									(20,866)	(19,171)	(20,507)
Net cash used in investing activities									(50,440)	(14,597)	(6,325)
Financing Activities:
Proceeds from issuances of senior notes									13,530	53,350
Proceeds from warrant stock option exercises									1,202	1,164	368
Net cash provided by (used in) financing activities									(839)	(9,922)	23,795
Net decrease in cash and cash equivalents									(14,770)	12,709	(10,523)
Cash and cash equivalents at beginning of period				64,259				51,550	64,259	51,550	62,073
Cash and cash equivalents at end of period	49,489				64,259				49,489	64,259	51,550
Parent Company [Member]
Operating Activities:
Net income (loss)									(34,964)	1,419	(18,786)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Equity in losses of subsidiaries									28,346	5,137	29,724
Dividends from subsidiaries									3,500
Depreciation and amortization									830	727	390
Fair value adjustments									(473)	557	(1,641)
Asset impairment											1,970
Deferred income taxes									169	(1,122)	(14,260)
Amortization of debt discounts									636	10
Changes in operating assets and liabilities:
Accounts receivables									4,065	7,302	(5,958)
Other assets									4,356	4,647	(4,139)
Accounts payable and accrued expenses									3,859	(3,741)	604
Accounts payable with subsidiaries									(943)	(9,385)	11,179
Net cash provided by (used in) operating activities									9,381	5,551	(917)
Investing Activities:
Additions to property and equipment									(468)	(465)	(1,483)
Investments in subsidiaries									(28,126)	(50,886)
Purchase of PE OP Co. debt										(17,003)
Net cash used in investing activities									(28,594)	(68,354)	(1,483)
Financing Activities:
Proceeds from issuances of senior notes									13,530	53,350
Proceeds from warrant stock option exercises									1,202	1,164	368
Preferred stock dividend payments									(1,265)	(1,269)	(1,265)
Net cash provided by (used in) financing activities									13,467	53,245	(897)
Net decrease in cash and cash equivalents									(5,746)	(9,558)	(3,297)
Cash and cash equivalents at beginning of period				$ 11,060				$ 20,618	11,060	20,618	23,915
Cash and cash equivalents at end of period	$ 5,314				$ 11,060				$ 5,314	$ 11,060	$ 20,618

QUARTERLY FINANCIAL DATA (UNA88

QUARTERLY FINANCIAL DATA (UNAUDITED). (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 395,271	$ 445,442	$ 405,202	$ 386,340	$ 441,719	$ 417,806	$ 422,860	$ 342,373	$ 1,632,255	$ 1,624,758	$ 1,191,176
Gross profit (loss)	(2,014)	12,065	1,653	(5,773)	27,314	7,021	18,355	1,668	5,931	54,358	10,366
Income (loss) from operations	(10,598)	3,345	(7,109)	(11,223)	18,808	393	11,556	(7,248)	(25,585)	23,509	(17,972)
Net income (loss) attributed to Pacific Ethanol, Inc.	(13,285)	(202)	(8,841)	(12,636)	13,077	(3,518)	5,086	(13,226)	(34,964)	1,419	(18,786)
Preferred stock dividends	(319)	(319)	(315)	(312)	(320)	(319)	(315)	(315)	(1,265)	(1,269)	(1,265)
Income allocated to participating securities					(189)	0	(71)	0		(2)
Net income (loss) available to common stockholders	$ (13,604)	$ (521)	$ (9,156)	$ (12,948)	$ 12,569	$ (3,837)	$ 4,700	$ (13,541)	$ (36,229)	$ 148	$ (20,051)
Basic and diluted income (loss) per common share	$ (0.32)	$ (0.01)	$ (0.22)	$ (0.31)	$ 0.30	$ (0.09)	$ 0.11	$ (0.32)