Freemarker Formatting Messed Up

The formatting of Freemarker templates seems to be doing some very strange things.
Most noticebly around indenting and if statements
e.g.

<#macro print fields><#t>
    <#if printxml??>
    <@printXML fields/><#t>
        <#else>
        <@printFixedWidth fields/><#t>
    </#if>
</#macro><#t>

instead of

<#macro print fields><#t>
    <#if printxml??>
        <@printXML fields/><#t>
    <#else>
        <@printFixedWidth fields/><#t>
    </#if>
</#macro><#t>