This is a strange one. Your settings look right, code snippet looks fine. I'd almost suspect something like the wrong beautifier profile being applied, though I haven't seen anything like that before.
I'll need to look at your configuration, so we'll send you instructions on how to pack that up in a few minutes. And save that snippet to a file and send it as well. I doubt there's anything special in a small code snippet like that that I'm not seeing from the screen shot, but when in doubt, I lean towards paranoia.