diff --git a/compiler/testData/diagnostics/tests/j+k/recursiveRawUpperBound.txt b/compiler/testData/diagnostics/tests/j+k/recursiveRawUpperBound.txt
index 29312aec310..4952e3db58d 100644
--- a/compiler/testData/diagnostics/tests/j+k/recursiveRawUpperBound.txt
+++ b/compiler/testData/diagnostics/tests/j+k/recursiveRawUpperBound.txt
@@ -1,6 +1,6 @@
 package
 
-internal fun foo(/*0*/ p: X): (Bad<(Bad<Bad<*>!>..Bad<out Bad<*>!>?)>..Bad<out (Bad<Bad<*>!>..Bad<out Bad<*>!>?)>?)
+internal fun foo(/*0*/ p: X): (Bad<Bad<*>!>..Bad<out Bad<*>!>?)
 
 public/*package*/ open class Bad</*0*/ T : (Bad<Bad<*>>..Bad<out Bad<*>>?)> {
     public/*package*/ constructor Bad</*0*/ T : (Bad<Bad<*>>..Bad<out Bad<*>>?)>()
@@ -12,7 +12,7 @@ public/*package*/ open class Bad</*0*/ T : (Bad<Bad<*>>..Bad<out Bad<*>>?)> {
 public/*package*/ open class X {
     public/*package*/ constructor X()
     public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
-    public/*package*/ open fun foo(): (Bad<(Bad<Bad<*>!>..Bad<out Bad<*>!>?)>..Bad<out (Bad<Bad<*>!>..Bad<out Bad<*>!>?)>?)
+    public/*package*/ open fun foo(): (Bad<Bad<*>!>..Bad<out Bad<*>!>?)
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 }
diff --git a/compiler/testData/diagnostics/tests/platformTypes/rawTypes/nonTrivialErasure.txt b/compiler/testData/diagnostics/tests/platformTypes/rawTypes/nonTrivialErasure.txt
index c29fa568548..b1711738ef0 100644
--- a/compiler/testData/diagnostics/tests/platformTypes/rawTypes/nonTrivialErasure.txt
+++ b/compiler/testData/diagnostics/tests/platformTypes/rawTypes/nonTrivialErasure.txt
@@ -30,5 +30,5 @@ public/*package*/ open class Test {
     }
 
     // Static members
-    public/*package*/ final var rawAField: (A<(A<A<*, *, *>!, A<*, *, *>!, kotlin.(Mutable)List<*>!>..A<out A<*, *, *>!, out A<*, *, *>!, out kotlin.(Mutable)List<*>!>?), (A<A<*, *, *>!, A<*, *, *>!, kotlin.(Mutable)List<*>!>..A<out A<*, *, *>!, out A<*, *, *>!, out kotlin.(Mutable)List<*>!>?), (kotlin.MutableList<kotlin.Any?>..kotlin.List<*>?)>..A<out (A<A<*, *, *>!, A<*, *, *>!, kotlin.(Mutable)List<*>!>..A<out A<*, *, *>!, out A<*, *, *>!, out kotlin.(Mutable)List<*>!>?), out (A<A<*, *, *>!, A<*, *, *>!, kotlin.(Mutable)List<*>!>..A<out A<*, *, *>!, out A<*, *, *>!, out kotlin.(Mutable)List<*>!>?), out (kotlin.MutableList<kotlin.Any?>..kotlin.List<*>?)>?)
+    public/*package*/ final var rawAField: (A<A<*, *, *>!, A<*, *, *>!, kotlin.(Mutable)List<*>!>..A<out A<*, *, *>!, out A<*, *, *>!, out kotlin.(Mutable)List<*>!>?)
 }
diff --git a/compiler/testData/diagnostics/tests/platformTypes/rawTypes/rawTypeInUpperBound.txt b/compiler/testData/diagnostics/tests/platformTypes/rawTypes/rawTypeInUpperBound.txt
index ede9115b0eb..dfe8381d5df 100644
--- a/compiler/testData/diagnostics/tests/platformTypes/rawTypes/rawTypeInUpperBound.txt
+++ b/compiler/testData/diagnostics/tests/platformTypes/rawTypes/rawTypeInUpperBound.txt
@@ -28,5 +28,5 @@ public open class Test {
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 
     // Static members
-    public/*package*/ final var rawB: (B<(A<kotlin.Any!>..A<*>?)>..B<out (A<kotlin.Any!>..A<*>?)>?)
+    public/*package*/ final var rawB: (B<A<*>!>..B<out A<*>!>?)
 }
diff --git a/compiler/testData/diagnostics/tests/platformTypes/rawTypes/rawWithInProjection.txt b/compiler/testData/diagnostics/tests/platformTypes/rawTypes/rawWithInProjection.txt
index 717ef620710..514ffc5d1b0 100644
--- a/compiler/testData/diagnostics/tests/platformTypes/rawTypes/rawWithInProjection.txt
+++ b/compiler/testData/diagnostics/tests/platformTypes/rawTypes/rawWithInProjection.txt
@@ -9,5 +9,5 @@ public/*package*/ open class Test {
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 
     // Static members
-    public/*package*/ open fun foo(/*0*/ x: (kotlin.Comparable<in kotlin.Any?>..kotlin.Comparable<in kotlin.Nothing>?)): kotlin.Unit
+    public/*package*/ open fun foo(/*0*/ x: (kotlin.Comparable<kotlin.Any?>..kotlin.Comparable<kotlin.Nothing>?)): kotlin.Unit
 }
diff --git a/compiler/testData/diagnostics/tests/platformTypes/rawTypes/starProjectionToRaw.txt b/compiler/testData/diagnostics/tests/platformTypes/rawTypes/starProjectionToRaw.txt
index 9bad5424952..5e8cf3df940 100644
--- a/compiler/testData/diagnostics/tests/platformTypes/rawTypes/starProjectionToRaw.txt
+++ b/compiler/testData/diagnostics/tests/platformTypes/rawTypes/starProjectionToRaw.txt
@@ -23,5 +23,5 @@ public/*package*/ open class Test {
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 
     // Static members
-    public/*package*/ open fun foo(/*0*/ x: (B<(A<kotlin.CharSequence!>..A<*>?)>..B<out (A<kotlin.CharSequence!>..A<*>?)>?)): kotlin.Unit
+    public/*package*/ open fun foo(/*0*/ x: (B<A<*>!>..B<out A<*>!>?)): kotlin.Unit
 }
diff --git a/compiler/testData/loadJava/compiledJava/signaturePropagation/RawSuperTypeWithRecursiveBound.txt b/compiler/testData/loadJava/compiledJava/signaturePropagation/RawSuperTypeWithRecursiveBound.txt
index 7422aabbe1c..ec049a63a2a 100644
--- a/compiler/testData/loadJava/compiledJava/signaturePropagation/RawSuperTypeWithRecursiveBound.txt
+++ b/compiler/testData/loadJava/compiledJava/signaturePropagation/RawSuperTypeWithRecursiveBound.txt
@@ -6,7 +6,7 @@ public open class RawSuperTypeWithRecursiveBound {
     public open inner class Derived : test.RawSuperTypeWithRecursiveBound.Super<out test.RawSuperTypeWithRecursiveBound.Super<*>!> {
         public constructor Derived()
         public open override /*1*/ fun dummy(): kotlin.Unit
-        public open override /*1*/ fun foo(/*0*/ p0: (test.RawSuperTypeWithRecursiveBound.Super<(test.RawSuperTypeWithRecursiveBound.Super<test.RawSuperTypeWithRecursiveBound.Super<*>!>..test.RawSuperTypeWithRecursiveBound.Super<out test.RawSuperTypeWithRecursiveBound.Super<*>!>?)>..test.RawSuperTypeWithRecursiveBound.Super<out (test.RawSuperTypeWithRecursiveBound.Super<test.RawSuperTypeWithRecursiveBound.Super<*>!>..test.RawSuperTypeWithRecursiveBound.Super<out test.RawSuperTypeWithRecursiveBound.Super<*>!>?)>?)): kotlin.Unit
+        public open override /*1*/ fun foo(/*0*/ p0: (test.RawSuperTypeWithRecursiveBound.Super<test.RawSuperTypeWithRecursiveBound.Super<*>!>..test.RawSuperTypeWithRecursiveBound.Super<out test.RawSuperTypeWithRecursiveBound.Super<*>!>?)): kotlin.Unit
         public open fun foo(/*0*/ p0: kotlin.Any!): kotlin.Unit
     }
 
diff --git a/compiler/testData/loadJava/compiledJava/signaturePropagation/RawSuperTypeWithRecursiveBoundMultipleParameters.txt b/compiler/testData/loadJava/compiledJava/signaturePropagation/RawSuperTypeWithRecursiveBoundMultipleParameters.txt
index 9f20e6321ea..6abec577b92 100644
--- a/compiler/testData/loadJava/compiledJava/signaturePropagation/RawSuperTypeWithRecursiveBoundMultipleParameters.txt
+++ b/compiler/testData/loadJava/compiledJava/signaturePropagation/RawSuperTypeWithRecursiveBoundMultipleParameters.txt
@@ -6,7 +6,7 @@ public open class RawSuperTypeWithRecursiveBoundMultipleParameters {
     public open inner class Derived : test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<kotlin.Any!, out test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, *>!> {
         public constructor Derived()
         public open override /*1*/ fun dummy(): kotlin.Unit
-        public open override /*1*/ fun foo(/*0*/ p0: kotlin.Any!, /*1*/ p1: (test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<kotlin.Any!, (test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<kotlin.Any!, test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, *>!>..test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, out test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, *>!>?)>..test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, out (test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<kotlin.Any!, test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, *>!>..test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, out test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, *>!>?)>?)): kotlin.Unit
+        public open override /*1*/ fun foo(/*0*/ p0: kotlin.Any!, /*1*/ p1: (test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<kotlin.Any!, test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, *>!>..test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, out test.RawSuperTypeWithRecursiveBoundMultipleParameters.Super<*, *>!>?)): kotlin.Unit
         public open fun foo(/*0*/ p0: kotlin.Any!, /*1*/ p1: kotlin.Any!): kotlin.Unit
     }
 
diff --git a/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/typeEnhacement/typeEnhancement.kt b/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/typeEnhacement/typeEnhancement.kt
index 7561c2f74ad..2c426fd2844 100644
--- a/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/typeEnhacement/typeEnhancement.kt
+++ b/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/typeEnhacement/typeEnhancement.kt
@@ -98,7 +98,7 @@ private fun JetType.enhanceInflexible(qualifiers: (Int) -> JavaTypeQualifiers, i
             enhancedNullabilityAnnotations
     ).filterNotNull().compositeAnnotationsOrSingle()
 
-    val (newSubstitution, substitutedEnhancedArgs) = computeNewSubstitutionAndArguments(
+    val newSubstitution = computeNewSubstitution(
         typeConstructor.parameters, enhancedArguments
     )
 
@@ -106,7 +106,7 @@ private fun JetType.enhanceInflexible(qualifiers: (Int) -> JavaTypeQualifiers, i
             newAnnotations,
             typeConstructor,
             enhancedNullability,
-            substitutedEnhancedArgs,
+            enhancedArguments,
             newSubstitution,
             if (enhancedClassifier is ClassDescriptor)
                 enhancedClassifier.getMemberScope(newSubstitution)
diff --git a/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt b/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt
index cb030ffb999..1bb0d52bac1 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt
@@ -91,25 +91,23 @@ public class IndexedParametersSubstitution(
     }
 }
 
-public fun JetType.computeNewSubstitutionAndArguments(
+public fun JetType.computeNewSubstitution(
     newParameters: List<TypeParameterDescriptor>,
     newArguments: List<TypeProjection>
-): Pair<TypeSubstitution, List<TypeProjection>> {
+): TypeSubstitution {
     val previousSubstitution = getSubstitution()
-    if (newArguments.isEmpty()) return Pair(previousSubstitution, emptyList())
+    if (newArguments.isEmpty()) return previousSubstitution
 
     val newIndexedSubstitution = IndexedParametersSubstitution(newParameters, newArguments)
 
     // If previous substitution was trivial just replace it with indexed one
     if (previousSubstitution is IndexedParametersSubstitution || previousSubstitution.isEmpty()) {
-        return Pair(newIndexedSubstitution, newArguments)
+        return newIndexedSubstitution
     }
 
     val composedSubstitution = CompositeTypeSubstitution(newIndexedSubstitution, previousSubstitution)
-    val newSubstitutor = composedSubstitution.buildSubstitutor()
-    val resultArguments = newParameters.map { newSubstitutor.substitute(TypeProjectionImpl(it.variance, it.defaultType))!! }
 
-    return Pair(composedSubstitution, resultArguments)
+    return composedSubstitution
 }
 
 private class CompositeTypeSubstitution(