diff --git a/java/java-impl/src/com/intellij/psi/formatter/java/JavaSpacePropertyProcessor.java b/java/java-impl/src/com/intellij/psi/formatter/java/JavaSpacePropertyProcessor.java
index f27234ef9a5c..8d04c48535b9 100644
--- a/java/java-impl/src/com/intellij/psi/formatter/java/JavaSpacePropertyProcessor.java
+++ b/java/java-impl/src/com/intellij/psi/formatter/java/JavaSpacePropertyProcessor.java
@@ -767,7 +767,14 @@ public class JavaSpacePropertyProcessor extends JavaElementVisitor {
       int minSpaces = 0;
       int minLineFeeds = 1;
       PsiElement psi = myChild1.getPsi();
-      if (mySettings.KEEP_MULTIPLE_EXPRESSIONS_IN_ONE_LINE || psi != null && PsiTreeUtil.hasErrorElements(psi)) {
+      
+      // We want to avoid situations like below:
+      //   1. Call 'introduce variable' refactoring for the code like 'System.out.println(1);';
+      //   2. When KEEP_MULTIPLE_EXPRESSIONS_IN_ONE_LINE is on, the output looks like 'int i = 1; System.out.println(i);';
+      // That's why we process the option only during the explicit reformat (directly invoked by an user).
+      if ((mySettings.KEEP_MULTIPLE_EXPRESSIONS_IN_ONE_LINE && FormatterUtil.isFormatterCalledExplicitly())
+          || psi != null && PsiTreeUtil.hasErrorElements(psi))
+      {
         minSpaces = 1;
         minLineFeeds = 0;
       }
diff --git a/platform/lang-impl/src/com/intellij/formatting/FormatterImpl.java b/platform/lang-impl/src/com/intellij/formatting/FormatterImpl.java
index 660eedc034a7..0b47d69e55ef 100644
--- a/platform/lang-impl/src/com/intellij/formatting/FormatterImpl.java
+++ b/platform/lang-impl/src/com/intellij/formatting/FormatterImpl.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2009 JetBrains s.r.o.
+ * Copyright 2000-2012 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -18,7 +18,6 @@ package com.intellij.formatting;
 
 import com.intellij.openapi.application.Application;
 import com.intellij.openapi.application.ApplicationManager;
-import com.intellij.openapi.command.CommandProcessor;
 import com.intellij.openapi.components.ApplicationComponent;
 import com.intellij.openapi.diagnostic.Logger;
 import com.intellij.openapi.fileTypes.FileType;
@@ -34,7 +33,6 @@ import com.intellij.psi.formatter.PsiBasedFormattingModel;
 import com.intellij.util.IncorrectOperationException;
 import com.intellij.util.SequentialTask;
 import com.intellij.util.text.CharArrayUtil;
-import com.intellij.util.ui.UIUtil;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
@@ -98,7 +96,7 @@ public class FormatterImpl extends FormatterEx
 
   @Override
   public void setProgressTask(@NotNull FormattingProgressTask progressIndicator) {
-    if (!FormatterUtil.FORMATTER_ACTION_NAMES.contains(CommandProcessor.getInstance().getCurrentCommandName())) {
+    if (!FormatterUtil.isFormatterCalledExplicitly()) {
       return;
     }
     myProgressTask.set(progressIndicator);
@@ -694,7 +692,7 @@ public class FormatterImpl extends FormatterEx
                                      final boolean keepLineBreaksFlag,
                                      final int keepLineBreaks,
                                      final boolean keepFirstColumn, int prefLineFeeds) {
-    synchronized(this) {
+    synchronized(ourSharedSpacing) {
       ourSharedSpacing.init(minSpaces, maxSpaces, minLineFeeds, readOnly, safe, keepLineBreaksFlag, keepLineBreaks, keepFirstColumn, prefLineFeeds);
       SpacingImpl spacing = ourSharedProperties.get(ourSharedSpacing);
 
diff --git a/platform/lang-impl/src/com/intellij/psi/formatter/FormatterUtil.java b/platform/lang-impl/src/com/intellij/psi/formatter/FormatterUtil.java
index c40a94360506..12b46a4f83e9 100644
--- a/platform/lang-impl/src/com/intellij/psi/formatter/FormatterUtil.java
+++ b/platform/lang-impl/src/com/intellij/psi/formatter/FormatterUtil.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2011 JetBrains s.r.o.
+ * Copyright 2000-2012 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -19,6 +19,7 @@ import com.intellij.codeInsight.actions.ReformatAndOptimizeImportsProcessor;
 import com.intellij.codeInsight.actions.ReformatCodeProcessor;
 import com.intellij.lang.ASTFactory;
 import com.intellij.lang.ASTNode;
+import com.intellij.openapi.command.CommandProcessor;
 import com.intellij.openapi.util.TextRange;
 import com.intellij.psi.PsiElement;
 import com.intellij.psi.TokenType;
@@ -292,7 +293,11 @@ public class FormatterUtil {
   private static ASTNode findPreviousWhiteSpace(final ASTNode leafElement, final IElementType whiteSpaceTokenType) {
     final int offset = leafElement.getTextRange().getStartOffset() - 1;
     if (offset < 0) return null;
-    final PsiElement found = SourceTreeToPsiMap.treeElementToPsi(leafElement).getContainingFile().findElementAt(offset);
+    final PsiElement psiElement = SourceTreeToPsiMap.treeElementToPsi(leafElement);
+    if (psiElement == null) {
+      return null;
+    }
+    final PsiElement found = psiElement.getContainingFile().findElementAt(offset);
     if (found == null) return null;
     final ASTNode treeElement = found.getNode();
     if (treeElement != null && treeElement.getElementType() == whiteSpaceTokenType) return treeElement;
@@ -357,6 +362,9 @@ public class FormatterUtil {
 
   public static void replaceLastWhiteSpace(final ASTNode astNode, final String whiteSpace, final TextRange textRange) {
     ASTNode lastWS = TreeUtil.findLastLeaf(astNode);
+    if (lastWS == null) {
+      return;
+    }
     if (lastWS.getElementType() != TokenType.WHITE_SPACE) {
       lastWS = null;
     }
@@ -381,4 +389,11 @@ public class FormatterUtil {
       treeParent.replaceChild(lastWS, whiteSpaceElement);
     }
   }
+
+  /**
+   * @return    <code>true</code> explicitly called 'reformat' is in  progress at the moment; <code>false</code> otherwise
+   */
+  public static boolean isFormatterCalledExplicitly() {
+    return FORMATTER_ACTION_NAMES.contains(CommandProcessor.getInstance().getCurrentCommandName());
+  }
 }