Product Version = NetBeans IDE 7.4 (Build 201310111528)
Operating System = Linux version 2.6.32-358.23.2.el6.i686 running on i386
Java; VM; Vendor = 1.7.0_45
Runtime = Java HotSpot(TM) Client VM 24.45-b08


1. I am typing below code in editor


    public static void main(String[] args)
    {
	int i = 10;

/*40*/	new ArrayList<String>();
    }

2. Now pressing ALT+ENTER in line 40
3. Assign return value to new variable hint appears
4. I click the hint
5. Suddenly the code becomes as follows

    public static void main(String[] args)
	{
		int i = 10;
		ArrayList<String> arrayList = new ArrayList<String>();
	}

6. It erases all the blank lines above the line where I clicked the above mentioned hint

It should not erase the previous blank lines. It should assign the return value in the same line itself. 
The blank line is usually kept for separating some code blocks for better code readability.

Attaching screen shot for showing this sequence of actions