diff --git a/java/java-impl/src/com/intellij/psi/formatter/java/SimpleJavaBlock.java b/java/java-impl/src/com/intellij/psi/formatter/java/SimpleJavaBlock.java
index 5d41de0fec43..b29b7fd66d38 100644
--- a/java/java-impl/src/com/intellij/psi/formatter/java/SimpleJavaBlock.java
+++ b/java/java-impl/src/com/intellij/psi/formatter/java/SimpleJavaBlock.java
@@ -24,11 +24,15 @@ import com.intellij.psi.codeStyle.CodeStyleSettings;
 import com.intellij.psi.formatter.FormatterUtil;
 import com.intellij.psi.impl.source.tree.ElementType;
 import com.intellij.psi.impl.source.tree.JavaDocElementType;
+import com.intellij.psi.impl.source.tree.JavaElementType;
 import com.intellij.psi.impl.source.tree.StdTokenSets;
 import com.intellij.psi.tree.IElementType;
 import org.jetbrains.annotations.NotNull;
 
-import java.util.*;
+import java.util.ArrayList;
+import java.util.HashMap;
+import java.util.List;
+import java.util.Map;
 
 public class SimpleJavaBlock extends AbstractJavaBlock {
 
@@ -102,7 +106,11 @@ public class SimpleJavaBlock extends AbstractJavaBlock {
       } else {
         return super.getChildAttributes(newChildIndex);
       }
-    } else {
+    }
+    else if (myNode.getElementType() == JavaElementType.SWITCH_LABEL_STATEMENT) {
+      return new ChildAttributes(Indent.getNormalIndent(), null);
+    }
+    else {
       return super.getChildAttributes(newChildIndex);
     }
   }
diff --git a/java/java-impl/src/com/intellij/psi/formatter/java/SyntheticCodeBlock.java b/java/java-impl/src/com/intellij/psi/formatter/java/SyntheticCodeBlock.java
index efbe3362dbff..9bc24c09f564 100644
--- a/java/java-impl/src/com/intellij/psi/formatter/java/SyntheticCodeBlock.java
+++ b/java/java-impl/src/com/intellij/psi/formatter/java/SyntheticCodeBlock.java
@@ -19,6 +19,8 @@ import com.intellij.formatting.*;
 import com.intellij.lang.ASTNode;
 import com.intellij.openapi.diagnostic.Logger;
 import com.intellij.openapi.util.TextRange;
+import com.intellij.psi.PsiElement;
+import com.intellij.psi.PsiFile;
 import com.intellij.psi.codeStyle.CodeStyleSettings;
 import com.intellij.psi.formatter.common.AbstractBlock;
 import org.jetbrains.annotations.NotNull;
@@ -84,13 +86,36 @@ public class SyntheticCodeBlock implements Block, JavaBlock{
   }
 
   public String toString() {
-    final ASTNode treeNode = ((AbstractBlock)mySubBlocks.get(0)).getNode();
+    ASTNode treeNode = null;
+    Block child = mySubBlocks.get(0);
+    while (treeNode == null) {
+      if (child instanceof AbstractBlock) {
+        treeNode = ((AbstractBlock)child).getNode();
+      }
+      else if (child instanceof SyntheticCodeBlock) {
+        child = ((SyntheticCodeBlock)child).mySubBlocks.get(0);
+      }
+      else {
+        break;
+      }
+    }
     final TextRange textRange = getTextRange();
-    return treeNode.getPsi().getContainingFile().getText().subSequence(textRange.getStartOffset(), textRange.getEndOffset()).toString();
+    if (treeNode != null) {
+      PsiElement psi = treeNode.getPsi();
+      if (psi != null) {
+        PsiFile file = psi.getContainingFile();
+        if (file != null) {
+          return file.getText().subSequence(textRange.getStartOffset(), textRange.getEndOffset()) + " " + textRange;
+        }
+      }
+    }
+    return getClass().getName() + ": " + textRange;
   }
 
   public ASTNode getFirstTreeNode() {
-    return AbstractJavaBlock.getTreeNode(mySubBlocks.get(0));
+    ASTNode result = AbstractJavaBlock.getTreeNode(mySubBlocks.get(0));
+    assert result != null;
+    return result;
   }
 
   public void setChildAttributes(final ChildAttributes childAttributes) {
diff --git a/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java b/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java
index 452adacfeabf..72421e87eefb 100644
--- a/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java
+++ b/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java
@@ -1128,8 +1128,9 @@ class FormatProcessor {
   }
 
   private static int getNewChildPosition(final AbstractBlockWrapper parent, final int offset) {
-    if (!(parent instanceof CompositeBlockWrapper)) return 0;
-    final List<AbstractBlockWrapper> subBlocks = ((CompositeBlockWrapper)parent).getChildren();
+    AbstractBlockWrapper parentBlockToUse = getLastNestedCompositeBlockForSameRange(parent);
+    if (!(parentBlockToUse instanceof CompositeBlockWrapper)) return 0;
+    final List<AbstractBlockWrapper> subBlocks = ((CompositeBlockWrapper)parentBlockToUse).getChildren();
     //noinspection ConstantConditions
     if (subBlocks != null) {
       for (int i = 0; i < subBlocks.size(); i++) {
@@ -1159,7 +1160,7 @@ class FormatProcessor {
   private AbstractBlockWrapper getParentFor(final int offset, LeafBlockWrapper block) {
     AbstractBlockWrapper previous = getPreviousIncompleteBlock(block, offset);
     if (previous != null) {
-      return previous;
+      return getLastNestedCompositeBlockForSameRange(previous);
     }
     else {
       return getParentFor(offset, (AbstractBlockWrapper)block);
@@ -1215,12 +1216,47 @@ class FormatProcessor {
 
   @Nullable
   private static AbstractBlockWrapper getLastChildOf(final AbstractBlockWrapper currentResult) {
-    if (!(currentResult instanceof CompositeBlockWrapper)) return null;
-    final List<AbstractBlockWrapper> subBlocks = ((CompositeBlockWrapper)currentResult).getChildren();
+    AbstractBlockWrapper parentBlockToUse = getLastNestedCompositeBlockForSameRange(currentResult);
+    if (!(parentBlockToUse instanceof CompositeBlockWrapper)) return null;
+    final List<AbstractBlockWrapper> subBlocks = ((CompositeBlockWrapper)parentBlockToUse).getChildren();
     if (subBlocks.isEmpty()) return null;
     return subBlocks.get(subBlocks.size() - 1);
   }
 
+  /**
+   * There is a possible case that particular block is a composite block that contains number of nested composite blocks
+   * that all target the same text range. This method allows to derive the most nested block that shares the same range (if any).
+   * 
+   * @param block   block to check
+   * @return        the most nested block of the given one that shares the same text range if any; given block otherwise
+   */
+  @NotNull
+  private static AbstractBlockWrapper getLastNestedCompositeBlockForSameRange(@NotNull final AbstractBlockWrapper block) {
+    if (!(block instanceof CompositeBlockWrapper)) {
+      return block;
+    }
+    
+    AbstractBlockWrapper result = block;
+    AbstractBlockWrapper candidate = block;
+    while (true) {
+      List<AbstractBlockWrapper> subBlocks = ((CompositeBlockWrapper)candidate).getChildren();
+      if (subBlocks == null || subBlocks.size() != 1) {
+        break;
+      }
+
+      candidate = subBlocks.get(0);
+      if (candidate.getStartOffset() == block.getStartOffset() && candidate.getEndOffset() == block.getEndOffset()
+          && candidate instanceof CompositeBlockWrapper)
+      {
+        result = candidate;
+      }
+      else {
+        break;
+      }
+    }
+    return result;
+  }
+
   private void processBlocksBefore(final int offset) {
     while (true) {
       myAlignAgain.clear();