diff --git a/java/java-tests/testSrc/com/intellij/refactoring/SequentialRefactoringTest.java b/java/java-tests/testSrc/com/intellij/refactoring/SequentialRefactoringTest.java
new file mode 100644
index 000000000000..23d2ad106faa
--- /dev/null
+++ b/java/java-tests/testSrc/com/intellij/refactoring/SequentialRefactoringTest.java
@@ -0,0 +1,81 @@
+/*
+ * 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.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.refactoring;
+
+import com.intellij.psi.*;
+import com.intellij.refactoring.extractMethod.PrepareFailedException;
+import com.intellij.refactoring.inline.InlineMethodProcessor;
+import com.intellij.testFramework.LightCodeInsightTestCase;
+
+import java.io.IOException;
+
+/**
+ * Is assumed to contain tests that include more than one refactoring into the processing.
+ * 
+ * @author Denis Zhdanov
+ * @since 1/12/12 2:35 PM
+ */
+public class SequentialRefactoringTest extends LightCodeInsightTestCase {
+
+  public void testFormattingAfterInlineExtractMethod() throws IOException, PrepareFailedException {
+    String text =
+      "public class BrokenAlignment {\n" +
+      "\n" +
+      "    public Object test() {\n" +
+      "        if (System.currentTimeMillis() > 1) {\n" +
+      "            if (System.currentTimeMillis() > 2) {\n" +
+      "                getData();\n" +
+      "            }\n" +
+      "        }\n" +
+      "        return \"hey\";\n" +
+      "    }\n" +
+      "\n" +
+      "    private void getData() {\n" +
+      "        String[] args = new String[]{};\n" +
+      "        String result = \"data: \";\n" +
+      "        int i = 0;\n" +
+      "        while (i < args.length) {\n" +
+      "            result += args[i];\n" +
+      "            if (i % 2 == 0) {\n" +
+      "                result += \", it's even!\";\n" +
+      "            } else {\n" +
+      "                System.out.println(\"It's odd :(\");\n" +
+      "                break;\n" +
+      "            }\n" +
+      "        }\n" +
+      "        int k = 1;\n" +
+      "    }\n" +
+      "\n" +
+      "}";
+    configureFromFileText("test.java", text);
+    
+    // Perform inline.
+    final PsiClass clazz = ((PsiClassOwner)myFile).getClasses()[0];
+    final PsiMethod[] methods = clazz.findMethodsByName("getData", false);
+    final PsiReferenceExpression ref = (PsiReferenceExpression)myFile.findReferenceAt(text.indexOf("getData") + 1);
+    final InlineMethodProcessor processor = new InlineMethodProcessor(getProject(), methods[0], ref, myEditor, false);
+    processor.run();
+    
+    // Perform extract.
+    final String currentText = myEditor.getDocument().getText();
+    int start = currentText.indexOf("String[] args");
+    int end = currentText.indexOf("\n", currentText.indexOf("int k"));
+    myEditor.getSelectionModel().setSelection(start, end);
+    ExtractMethodTest.performExtractMethod(true, true, myEditor, myFile, getProject());
+    
+    checkResultByText(text.replace("getData", "newMethod"));
+  }
+}
diff --git a/platform/lang-impl/src/com/intellij/psi/impl/source/PostprocessReformattingAspect.java b/platform/lang-impl/src/com/intellij/psi/impl/source/PostprocessReformattingAspect.java
index 868b698c5ff2..42b4ee1f167b 100644
--- a/platform/lang-impl/src/com/intellij/psi/impl/source/PostprocessReformattingAspect.java
+++ b/platform/lang-impl/src/com/intellij/psi/impl/source/PostprocessReformattingAspect.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.
@@ -154,7 +154,7 @@ public class PostprocessReformattingAspect implements PomModelAspect {
     }
   }
 
-  private void atomic(Runnable r) {
+  private static void atomic(Runnable r) {
     ProgressManager.getInstance().executeNonCancelableSection(r);
   }
 
@@ -484,6 +484,9 @@ public class PostprocessReformattingAspect implements PomModelAspect {
                                        final TreeSet<PostprocessFormattingTask> rangesToProcess) {
     final Set<ASTNode> nodesToProcess = new HashSet<ASTNode>(astNodes);
     final Document document = provider.getDocument();
+    if (document == null) {
+      return;
+    }
     for (final ASTNode node : astNodes) {
       nodesToProcess.remove(node);
       final FileElement fileElement = TreeUtil.getFileElement((TreeElement)node);
@@ -507,6 +510,7 @@ public class PostprocessReformattingAspect implements PomModelAspect {
           if (!currentNodeGenerated && inGeneratedContext) {
             if (element.getElementType() == TokenType.WHITE_SPACE) return false;
             final int oldIndent = CodeEditUtil.getOldIndentation(element);
+            CodeEditUtil.setOldIndentation(element, -1);
             LOG.assertTrue(oldIndent >= 0, "for not generated items old indentation must be defined: element " + element);
             rangesToProcess.add(new ReindentTask(document.createRangeMarker(element.getTextRange()), oldIndent));
             inGeneratedContext = false;
@@ -574,8 +578,10 @@ public class PostprocessReformattingAspect implements PomModelAspect {
     }
   }
 
+  @SuppressWarnings("StatementWithEmptyBody")
   private static int getNewIndent(final PsiFile psiFile, final int firstWhitespace) {
     final Document document = psiFile.getViewProvider().getDocument();
+    assert document != null;
     final int startOffset = document.getLineStartOffset(document.getLineNumber(firstWhitespace));
     int endOffset = startOffset;
     final CharSequence charsSequence = document.getCharsSequence();
@@ -592,6 +598,7 @@ public class PostprocessReformattingAspect implements PomModelAspect {
     final CodeStyleSettings styleSettings = CodeStyleSettingsManager.getSettings(myPsiManager.getProject());
     final PsiDocumentManager documentManager = PsiDocumentManager.getInstance(myPsiManager.getProject());
     final Document document = viewProvider.getDocument();
+    assert document != null;
     final CodeFormatterFacade codeFormatter = new CodeFormatterFacade(styleSettings);
 
     documentManager.commitDocument(document);
@@ -688,6 +695,7 @@ public class PostprocessReformattingAspect implements PomModelAspect {
     @Override
     public void execute(FileViewProvider viewProvider) {
       final Document document = viewProvider.getDocument();
+      assert document != null;
       final PsiFile psiFile = viewProvider.getPsi(viewProvider.getBaseLanguage());
       for (Pair<Integer, RangeMarker> integerRangeMarkerPair : myRangesToReindent) {
         RangeMarker marker = integerRangeMarkerPair.second;