diff --git a/compiler/src/main/java/android/databinding/tool/expr/Expr.java b/compiler/src/main/java/android/databinding/tool/expr/Expr.java
index a562f4e..fc7129c 100644
--- a/compiler/src/main/java/android/databinding/tool/expr/Expr.java
+++ b/compiler/src/main/java/android/databinding/tool/expr/Expr.java
@@ -210,7 +210,6 @@
         }
 
         for (Dependency dependency : getDependants()) {
-            // first traverse non-conditionals because we'll avoid adding conditionals if we are get because of these anyways
             if (dependency.getCondition() == null) {
                 bitSet.or(dependency.getDependant().getShouldReadFlagsWithConditionals());
             } else {
@@ -474,6 +473,7 @@
 
         clone.andNot(mReadSoFar);
         mRead = clone.isEmpty();
+
         if (!mRead && !mReadSoFar.isEmpty()) {
             // check if remaining dependencies can be satisfied w/ existing values
             // for predicate flags, this expr may already be calculated to get the predicate
@@ -481,25 +481,29 @@
             // them. If any of them is completely covered w/ our non-conditional flags, no reason
             // to add them to the list since we'll already be calculated due to our non-conditional
             // flags
-
+            boolean allCovered = true;
             for (int i = clone.nextSetBit(0); i != -1; i = clone.nextSetBit(i + 1)) {
                 final Expr expr = mModel.findFlagExpression(i);
-                if (expr == null || !expr.isConditional()) {
+                if (expr == null) {
                     continue;
                 }
-                final BitSet readForConditional = expr.findConditionalFlags();
+                if (!expr.isConditional()) {
+                    allCovered = false;
+                    break;
+                }
+                final BitSet readForConditional = (BitSet) expr.findConditionalFlags().clone();
+
+                // FIXME: this does not do full traversal so misses some cases
                 // to calculate that conditional, i should've read /readForConditional/ flags
-                // if my read-so-far bits has any common w/ that; that means i would've already
+                // if my read-so-far bits cover that; that means i would've already
                 // read myself
-                clone.andNot(readForConditional);
-                final BitSet invalidFlags = (BitSet) getInvalidFlags().clone();
-                invalidFlags.xor(readForConditional);
-                mRead = invalidFlags.isEmpty() || clone.isEmpty();
-                if (mRead) {
+                readForConditional.andNot(mReadSoFar);
+                if (!readForConditional.isEmpty()) {
+                    allCovered = false;
                     break;
                 }
             }
-
+            mRead = allCovered;
         }
         if (mRead) {
             mShouldReadFlags = null; // if we've been marked as read, clear should read flags
@@ -543,10 +547,12 @@
 
     private Node mCalculationPaths = null;
 
+    /**
+     * All flag paths that will result in calculation of this expression.
+     */
     protected Node getAllCalculationPaths() {
         if (mCalculationPaths == null) {
             Node node = new Node();
-            // TODO distant parent w/ conditionals are still not traversed :/
             if (isConditional()) {
                 node.mBitSet.or(getPredicateInvalidFlags());
             } else {
@@ -559,6 +565,7 @@
                     cond.setConditionFlag(
                             dependant.getRequirementFlagIndex(dependency.getExpectedOutput()));
                     cond.mParents.add(dependant.getAllCalculationPaths());
+                    node.mParents.add(cond);
                 } else {
                     node.mParents.add(dependant.getAllCalculationPaths());
                 }
@@ -674,19 +681,24 @@
 
         public boolean areAllPathsSatisfied(BitSet readSoFar) {
             if (mConditionFlag != -1) {
-                return readSoFar.get(mConditionFlag) || mParents.get(0)
-                        .areAllPathsSatisfied(readSoFar);
+                return readSoFar.get(mConditionFlag)
+                        || mParents.get(0).areAllPathsSatisfied(readSoFar);
             } else {
-                final BitSet clone = (BitSet) readSoFar.clone();
-                clone.and(mBitSet);
-                if (!clone.isEmpty()) {
-                    return true;
-                }
-                if (mParents.isEmpty()) {
+                final BitSet myBitsClone = (BitSet) mBitSet.clone();
+                myBitsClone.andNot(readSoFar);
+                if (!myBitsClone.isEmpty()) {
+                    // read so far does not cover all of my invalidation. The only way I could be
+                    // covered is that I only have 1 conditional dependent which is covered by this.
+                    if (mParents.size() == 1 && mParents.get(0).mConditionFlag != -1) {
+                        return mParents.get(0).areAllPathsSatisfied(readSoFar);
+                    }
                     return false;
                 }
+                if (mParents.isEmpty()) {
+                    return true;
+                }
                 for (Node parent : mParents) {
-                    if (!parent.areAllPathsSatisfied(clone)) {
+                    if (!parent.areAllPathsSatisfied(readSoFar)) {
                         return false;
                     }
                 }
diff --git a/compiler/src/main/java/android/databinding/tool/expr/ExprModel.java b/compiler/src/main/java/android/databinding/tool/expr/ExprModel.java
index a4eb1a8..57d19cf 100644
--- a/compiler/src/main/java/android/databinding/tool/expr/ExprModel.java
+++ b/compiler/src/main/java/android/databinding/tool/expr/ExprModel.java
@@ -53,6 +53,7 @@
      * Any expression can be invalidated by invalidating this flag.
      */
     private BitSet mInvalidateAnyFlags;
+    private int mInvalidateAnyFlagIndex;
 
     /**
      * Used by code generation. Keeps the list of expressions that are waiting to be evaluated.
@@ -356,7 +357,7 @@
         for (Expr expr : mExprMap.values()) {
             expr.getDependencies();
         }
-        final int invalidateAnyFlagIndex = counter ++;
+        mInvalidateAnyFlagIndex = counter ++;
         flagMapping.add("INVALIDATE ANY");
         mInvalidateableFieldLimit = counter;
         mInvalidateableFlags = new BitSet();
@@ -393,7 +394,7 @@
 
         mFlagBucketCount = 1 + (getTotalFlagCount() / FlagSet.sBucketSize);
         mInvalidateAnyFlags = new BitSet();
-        mInvalidateAnyFlags.set(invalidateAnyFlagIndex, true);
+        mInvalidateAnyFlags.set(mInvalidateAnyFlagIndex, true);
 
         for (Expr expr : mExprMap.values()) {
             expr.getShouldReadFlagsWithConditionals();
@@ -515,14 +516,15 @@
             }
         }
         for (Expr partialRead : markedSomeFlagsAsRead) {
-            boolean allPathsAreSatisfied = partialRead.getAllCalculationPaths()
-                    .areAllPathsSatisfied(partialRead.mReadSoFar);
-            if (!allPathsAreSatisfied) {
-                continue;
-            }
+            // even if all paths are not satisfied, we can elevate certain conditional dependencies
+            // if all of their paths are satisfied.
             for (Dependency dependency : partialRead.getDependants()) {
-                if (dependency.getDependant().considerElevatingConditionals(partialRead)) {
-                    elevated = true;
+                Expr dependant = dependency.getDependant();
+                if (dependant.isConditional() && dependant.getAllCalculationPaths()
+                        .areAllPathsSatisfied(partialRead.mReadSoFar)) {
+                    if (dependant.considerElevatingConditionals(partialRead)) {
+                        elevated = true;
+                    }
                 }
             }
         }
@@ -593,6 +595,10 @@
         return mInvalidateAnyFlags;
     }
 
+    public int getInvalidateAnyFlagIndex() {
+        return mInvalidateAnyFlagIndex;
+    }
+
     public Expr argListExpr(Iterable<Expr> expressions) {
         return register(new ArgListExpr(mArgListIdCounter ++, expressions));
     }
diff --git a/compiler/src/main/kotlin/android/databinding/tool/writer/LayoutBinderWriter.kt b/compiler/src/main/kotlin/android/databinding/tool/writer/LayoutBinderWriter.kt
index 47a44f5..55b858e 100644
--- a/compiler/src/main/kotlin/android/databinding/tool/writer/LayoutBinderWriter.kt
+++ b/compiler/src/main/kotlin/android/databinding/tool/writer/LayoutBinderWriter.kt
@@ -192,6 +192,10 @@
     FlagSet(expr.getShouldReadFlags(), expr.getModel().getFlagBucketCount())
 }
 
+val Expr.shouldReadWithConditionalsFlagSet by Delegates.versionedLazy { expr : Expr ->
+    FlagSet(expr.getShouldReadFlagsWithConditionals(), expr.getModel().getFlagBucketCount())
+}
+
 val Expr.conditionalFlags by Delegates.lazy { expr : Expr ->
     arrayListOf(FlagSet(expr.getRequirementFlagIndex(false)),
             FlagSet(expr.getRequirementFlagIndex(true)))
@@ -868,31 +872,66 @@
                         L.d("flag set:%s . inherited flags: %s. need another if: %s", flagSet, inheritedFlags, needsIfWrapper);
 
                         // if I am the condition for an expression, set its flag
-                        val conditionals = expr.getDependants().filter {
+                        expr.getDependants().filter {
                             !it.isConditional() && it.getDependant() is TernaryExpr &&
                                     (it.getDependant() as TernaryExpr).getPred() == expr
-                        }.map { it.getDependant() }
-                        if (conditionals.isNotEmpty()) {
-                            tab("// setting conditional flags")
-                            tab("if (${expr.executePendingLocalName}) {") {
-                                conditionals.forEach {
-                                    val set = it.getRequirementFlagSet(true)
-                                    mDirtyFlags.mapOr(set) { suffix, index ->
-                                        tab("${tmpDirtyFlags.localValue(index)} |= ${set.localValue(index)};")
+                        }.map { it.getDependant() }.groupBy {
+                            // group by when those ternaries will be evaluated (e.g. don't set conditional flags for no reason)
+                            val ternaryBitSet = it.getShouldReadFlagsWithConditionals()
+                            val isBehindTernary = ternaryBitSet.nextSetBit(model.getInvalidateAnyFlagIndex()) == -1
+                            if (!isBehindTernary) {
+                                val ternaryFlags = it.shouldReadWithConditionalsFlagSet
+                                "if(${tmpDirtyFlags.mapOr(ternaryFlags){ suffix, index ->
+                                    "(${tmpDirtyFlags.localValue(index)} & ${ternaryFlags.localValue(index)}) != 0"
+                                }.joinToString(" || ")}) {"
+                            } else {
+                                // TODO if it is behind a ternary, we should set it when its predicate is elevated
+                                // Normally, this would mean that there is another code path to re-read our current expression.
+                                // Unfortunately, this may not be true due to the coverage detection in `expr#markAsReadIfDone`, this may never happen.
+                                // for v1.0, we'll go with always setting it and suffering an unnecessary calculation for this edge case.
+                                // we can solve this by listening to elevation events from the model.
+                                ""
+                            }
+                        }.forEach {
+                            val hasAnotherIf = it.key != ""
+                            if (hasAnotherIf) {
+                                tab(it.key) {
+                                    tab("if (${expr.executePendingLocalName}) {") {
+                                        it.value.forEach {
+                                            val set = it.getRequirementFlagSet(true)
+                                            mDirtyFlags.mapOr(set) { suffix, index ->
+                                                tab("${tmpDirtyFlags.localValue(index)} |= ${set.localValue(index)};")
+                                            }
+                                        }
+                                    }
+                                    tab("} else {") {
+                                        it.value.forEach {
+                                            val set = it.getRequirementFlagSet(false)
+                                            mDirtyFlags.mapOr(set) { suffix, index ->
+                                                tab("${tmpDirtyFlags.localValue(index)} |= ${set.localValue(index)};")
+                                            }
+                                        }
+                                    }.tab("}")
+                                }.app("}")
+                            } else {
+                                tab("if (${expr.executePendingLocalName}) {") {
+                                    it.value.forEach {
+                                        val set = it.getRequirementFlagSet(true)
+                                        mDirtyFlags.mapOr(set) { suffix, index ->
+                                            tab("${tmpDirtyFlags.localValue(index)} |= ${set.localValue(index)};")
+                                        }
                                     }
                                 }
-                            }
-                            tab("} else {") {
-                                conditionals.forEach {
-                                    val set = it.getRequirementFlagSet(false)
-                                    mDirtyFlags.mapOr(set) { suffix, index ->
-                                        tab("${tmpDirtyFlags.localValue(index)} |= ${set.localValue(index)};")
+                                tab("} else {") {
+                                    it.value.forEach {
+                                        val set = it.getRequirementFlagSet(false)
+                                        mDirtyFlags.mapOr(set) { suffix, index ->
+                                            tab("${tmpDirtyFlags.localValue(index)} |= ${set.localValue(index)};")
+                                        }
                                     }
-                                }
+                                } app("}")
                             }
-                            tab("}")
                         }
-
                         val chosen = expr.getDependants().filter {
                             val dependant = it.getDependant()
                             batch.contains(dependant) &&
diff --git a/compiler/src/test/java/android/databinding/tool/LayoutBinderTest.java b/compiler/src/test/java/android/databinding/tool/LayoutBinderTest.java
index 042b563..2b4d2a3 100644
--- a/compiler/src/test/java/android/databinding/tool/LayoutBinderTest.java
+++ b/compiler/src/test/java/android/databinding/tool/LayoutBinderTest.java
@@ -34,7 +34,7 @@
 import static org.junit.Assert.assertTrue;
 
 public class LayoutBinderTest {
-    LayoutBinder mLayoutBinder;
+    MockLayoutBinder mLayoutBinder;
     ExprModel mExprModel;
     @Before
     public void setUp() throws Exception {
diff --git a/compiler/src/test/java/android/databinding/tool/MockLayoutBinder.java b/compiler/src/test/java/android/databinding/tool/MockLayoutBinder.java
index 3380ffa..0807e7c 100644
--- a/compiler/src/test/java/android/databinding/tool/MockLayoutBinder.java
+++ b/compiler/src/test/java/android/databinding/tool/MockLayoutBinder.java
@@ -13,6 +13,8 @@
 
 package android.databinding.tool;
 
+import android.databinding.tool.expr.IdentifierExpr;
+import android.databinding.tool.store.Location;
 import android.databinding.tool.store.ResourceBundle;
 
 import java.io.File;
@@ -24,4 +26,8 @@
                 "com.test.submodule",
                 false));
     }
+
+    public IdentifierExpr addVariable(String name, String type, Location location) {
+        return super.addVariable(name, type, location, true);
+    }
 }
diff --git a/compiler/src/test/java/android/databinding/tool/expr/ExprModelTest.java b/compiler/src/test/java/android/databinding/tool/expr/ExprModelTest.java
index ef45b75..d0ee0d6 100644
--- a/compiler/src/test/java/android/databinding/tool/expr/ExprModelTest.java
+++ b/compiler/src/test/java/android/databinding/tool/expr/ExprModelTest.java
@@ -138,7 +138,7 @@
 
     @Test
     public void testShouldRead() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr a = lb.addVariable("a", "java.lang.String", null);
         IdentifierExpr b = lb.addVariable("b", "java.lang.String", null);
@@ -160,7 +160,7 @@
 
     @Test
     public void testTernaryWithPlus() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr user = lb
                 .addVariable("user", "android.databinding.tool.expr.ExprModelTest.User",
@@ -215,7 +215,7 @@
 
     @Test
     public void testTernaryInsideTernary() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr cond1 = lb.addVariable("cond1", "boolean", null);
         IdentifierExpr cond2 = lb.addVariable("cond2", "boolean", null);
@@ -260,7 +260,7 @@
 
     @Test
     public void testRequirementFlags() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr a = lb.addVariable("a", "java.lang.String", null);
         IdentifierExpr b = lb.addVariable("b", "java.lang.String", null);
@@ -332,7 +332,7 @@
 
     @Test
     public void testPostConditionalDependencies() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
 
         IdentifierExpr u1 = lb.addVariable("u1", User.class.getCanonicalName(), null);
@@ -396,24 +396,26 @@
         assertTrue(mExprModel.markBitsRead());
 
         shouldRead = getShouldRead();
-        // actually, there is no real case to read u1 anymore because if b>c was not true,
+        // FIXME: there is no real case to read u1 anymore because if b>c was not true,
         // u1.getCond(d) will never be set. Right now, we don't have mechanism to figure this out
         // and also it does not affect correctness (just an unnecessary if stmt)
         assertExactMatch(shouldRead, u1, u2, u1LastName, u2LastName, bcTernary.getIfTrue(), bcTernary);
         firstRead = getReadFirst(shouldRead);
         assertExactMatch(firstRead, u1, u2);
-
+        assertFlags(u1, bcTernary.getIfTrue().getRequirementFlagIndex(true));
+        assertFlags(u2, bcTernary.getIfTrue().getRequirementFlagIndex(false));
         assertFlags(u1LastName, bcTernary.getIfTrue().getRequirementFlagIndex(true));
         assertFlags(u2LastName, bcTernary.getIfTrue().getRequirementFlagIndex(false));
-        assertFlags(u2, bcTernary.getIfTrue().getRequirementFlagIndex(false));
 
         assertFlags(bcTernary.getIfTrue(), bcTernary.getRequirementFlagIndex(true));
         assertFlags(bcTernary, b, c, u1, u2, d, u1LastName, u2LastName, e);
+
+        assertFalse(mExprModel.markBitsRead());
     }
 
     @Test
     public void testCircularDependency() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr a = lb.addVariable("a", int.class.getCanonicalName(),
                 null);
@@ -431,7 +433,7 @@
 
     @Test
     public void testNestedCircularDependency() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr a = lb.addVariable("a", int.class.getCanonicalName(),
                 null);
@@ -454,23 +456,24 @@
 
     @Test
     public void testInterExprDependency() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr u = lb.addVariable("u", User.class.getCanonicalName(),
                 null);
         final Expr uComment = parse(lb, "u.comment", FieldAccessExpr.class);
         final TernaryExpr uTernary = parse(lb, "u.useComment ? u.comment : `xx`", TernaryExpr.class);
         mExprModel.seal();
+        assertTrue(uTernary.getPred().canBeInvalidated());
         List<Expr> shouldRead = getShouldRead();
         assertExactMatch(shouldRead, u, uComment, uTernary.getPred());
         assertTrue(mExprModel.markBitsRead());
         shouldRead = getShouldRead();
-        assertExactMatch(shouldRead, u, uComment, uTernary);
+        assertExactMatch(shouldRead, uComment, uTernary);
     }
 
     @Test
     public void testInterExprCircularDependency() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr a = lb.addVariable("a", int.class.getCanonicalName(),
                 null);
@@ -488,7 +491,7 @@
 
     @Test
     public void testInterExprCircularDependency2() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr a = lb.addVariable("a", boolean.class.getCanonicalName(),
                 null);
@@ -499,20 +502,15 @@
         mExprModel.seal();
         List<Expr> shouldRead = getShouldRead();
         assertExactMatch(shouldRead, a, b);
+        assertFlags(a, a, b);
+        assertFlags(b, a, b);
         List<Expr> readFirst = getReadFirst(shouldRead);
         assertExactMatch(readFirst, a, b);
         assertTrue(mExprModel.markBitsRead());
         shouldRead = getShouldRead();
-        // read a and b again, this time for their dependencies and also the rest since everything
-        // is ready to be read
-        assertExactMatch(shouldRead, a, b, abTernary, baTernary);
-        List<Expr> justRead = new ArrayList<Expr>();
+        assertExactMatch(shouldRead, abTernary, baTernary);
         readFirst = getReadFirst(shouldRead);
-        assertExactMatch(readFirst, a, b);
-        Collections.addAll(justRead, a, b);
-        readFirst = filterOut(getReadFirst(shouldRead, justRead), justRead);
         assertExactMatch(readFirst, abTernary, baTernary);
-
         assertFalse(mExprModel.markBitsRead());
         shouldRead = getShouldRead();
         assertEquals(0, shouldRead.size());
@@ -520,7 +518,7 @@
 
     @Test
     public void testInterExprCircularDependency3() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr a = lb.addVariable("a", boolean.class.getCanonicalName(),
                 null);
@@ -537,7 +535,7 @@
         shouldRead = getShouldRead();
         // read a and b again, this time for their dependencies and also the rest since everything
         // is ready to be read
-        assertExactMatch(shouldRead, a, b, c, abTernary, abTernary2);
+        assertExactMatch(shouldRead, c, abTernary, abTernary2);
         mExprModel.markBitsRead();
         shouldRead = getShouldRead();
         assertEquals(0, shouldRead.size());
@@ -545,7 +543,7 @@
 
     @Test
     public void testInterExprCircularDependency4() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr a = lb.addVariable("a", boolean.class.getCanonicalName(),
                 null);
@@ -560,6 +558,8 @@
         final TernaryExpr baTernary = parse(lb, "b ? a : false", TernaryExpr.class);
         mExprModel.seal();
         List<Expr> shouldRead = getShouldRead();
+        // check if a,b or c should be read. these are easily calculated from binding expressions'
+        // invalidation
         assertExactMatch(shouldRead, c, a, b);
 
         List<Expr> justRead = new ArrayList<Expr>();
@@ -569,16 +569,36 @@
         assertEquals(0, filterOut(getReadFirst(shouldRead, justRead), justRead).size());
         assertTrue(mExprModel.markBitsRead());
         shouldRead = getShouldRead();
-        assertExactMatch(shouldRead, a, b, d, cTernary.getIfTrue(), cTernary, abTernary, baTernary);
+        // if a and b are not invalid, a won't be read in the first step. But if c's expression
+        // is invalid and c == true, a must be read. Depending on a, d might be read as well.
+        // don't need to read b anymore because `a ? b : true` and `b ? a : false` has the same
+        // invalidation flags.
+        assertExactMatch(shouldRead, a, abTernary, baTernary);
         justRead.clear();
 
         readFirst = getReadFirst(shouldRead);
-        assertExactMatch(readFirst, a, b, d);
-        Collections.addAll(justRead, a, b, d);
+        // first must read `a`.
+        assertExactMatch(readFirst, a);
+        Collections.addAll(justRead, a);
 
         readFirst = filterOut(getReadFirst(shouldRead, justRead), justRead);
-        assertExactMatch(readFirst, cTernary.getIfTrue(), abTernary, baTernary);
-        Collections.addAll(justRead, cTernary.getIfTrue(), abTernary, baTernary);
+        assertExactMatch(readFirst, abTernary, baTernary);
+        Collections.addAll(justRead, abTernary, baTernary);
+
+        readFirst = filterOut(getReadFirst(shouldRead, justRead), justRead);
+        assertEquals(0, filterOut(getReadFirst(shouldRead, justRead), justRead).size());
+        assertTrue(mExprModel.markBitsRead());
+
+        shouldRead = getShouldRead();
+        // now we can read adf ternary and c ternary
+        justRead.clear();
+        assertExactMatch(shouldRead, d, cTernary.getIfTrue(), cTernary);
+        readFirst = getReadFirst(shouldRead);
+        assertExactMatch(readFirst, d);
+        Collections.addAll(justRead, d);
+        readFirst = filterOut(getReadFirst(shouldRead, justRead), justRead);
+        assertExactMatch(readFirst, cTernary.getIfTrue());
+        Collections.addAll(justRead, cTernary.getIfTrue());
 
         readFirst = filterOut(getReadFirst(shouldRead, justRead), justRead);
         assertExactMatch(readFirst, cTernary);
@@ -590,8 +610,33 @@
     }
 
     @Test
+    public void testInterExprDeepDependency() {
+        MockLayoutBinder lb = new MockLayoutBinder();
+        mExprModel = lb.getModel();
+        IdentifierExpr a = lb.addVariable("a", boolean.class.getCanonicalName(), null);
+        IdentifierExpr b = lb.addVariable("b", boolean.class.getCanonicalName(), null);
+        IdentifierExpr c = lb.addVariable("c", boolean.class.getCanonicalName(), null);
+        final TernaryExpr t1 = parse(lb, "c ? (a ? b : true) : false", TernaryExpr.class);
+        final TernaryExpr t2 = parse(lb, "c ? (b ? a : false) : true", TernaryExpr.class);
+        final TernaryExpr abTernary = (TernaryExpr) t1.getIfTrue();
+        final TernaryExpr baTernary = (TernaryExpr) t2.getIfTrue();
+        mExprModel.seal();
+        List<Expr> shouldRead = getShouldRead();
+        assertExactMatch(shouldRead, c);
+        assertTrue(mExprModel.markBitsRead());
+        shouldRead = getShouldRead();
+        assertExactMatch(shouldRead, a, b);
+        assertTrue(mExprModel.markBitsRead());
+        shouldRead = getShouldRead();
+        assertExactMatch(shouldRead, a, b, t1.getIfTrue(), t2.getIfTrue(), t1, t2);
+        assertFlags(b, abTernary.getRequirementFlagIndex(true));
+        assertFlags(a, baTernary.getRequirementFlagIndex(true));
+        assertFalse(mExprModel.markBitsRead());
+    }
+
+    @Test
     public void testInterExprDependencyNotReadyYet() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr a = lb.addVariable("a", boolean.class.getCanonicalName(), null);
         IdentifierExpr b = lb.addVariable("b", boolean.class.getCanonicalName(), null);
@@ -615,7 +660,7 @@
 
     @Test
     public void testNoFlagsForNonBindingStatic() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         lb.addVariable("a", int.class.getCanonicalName(), null);
         final MathExpr parsed = parse(lb, "a * (3 + 2)", MathExpr.class);
@@ -630,7 +675,7 @@
 
     @Test
     public void testFlagsForBindingStatic() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         lb.addVariable("a", int.class.getCanonicalName(), null);
         final Expr staticParsed = parse(lb, "3 + 2", MathExpr.class);
@@ -648,7 +693,7 @@
 
     @Test
     public void testFinalFieldOfAVariable() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         IdentifierExpr user = lb.addVariable("user", User.class.getCanonicalName(),
                 null);
@@ -664,7 +709,7 @@
 
     @Test
     public void testFinalFieldOfAField() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         lb.addVariable("user", User.class.getCanonicalName(), null);
         Expr finalFieldGet = parse(lb, "user.subObj.finalField", FieldAccessExpr.class);
@@ -683,7 +728,7 @@
 
     @Test
     public void testFinalFieldOfAMethod() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         lb.addVariable("user", User.class.getCanonicalName(), null);
         Expr finalFieldGet = parse(lb, "user.anotherSubObj.finalField", FieldAccessExpr.class);
@@ -702,7 +747,7 @@
 
     @Test
     public void testFinalOfAClass() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         mExprModel.addImport("View", "android.view.View", null);
         FieldAccessExpr fieldAccess = parse(lb, "View.VISIBLE", FieldAccessExpr.class);
@@ -713,7 +758,7 @@
 
     @Test
     public void testStaticFieldOfInstance() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         lb.addVariable("myView", "android.view.View", null);
         FieldAccessExpr fieldAccess = parse(lb, "myView.VISIBLE", FieldAccessExpr.class);
@@ -730,7 +775,7 @@
 
     @Test
     public void testOnDemandImportConflict() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         final IdentifierExpr myView = lb.addVariable("u", "android.view.View",
                 null);
@@ -745,7 +790,7 @@
 
     @Test
     public void testOnDemandImportAlreadyImported() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         final StaticIdentifierExpr ux = mExprModel.addImport("UX", User.class.getCanonicalName(),
                 null);
@@ -759,7 +804,7 @@
 
     @Test
     public void testStaticMethodOfInstance() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         lb.addVariable("user", User.class.getCanonicalName(), null);
         MethodCallExpr methodCall = parse(lb, "user.ourStaticMethod()", MethodCallExpr.class);
@@ -773,7 +818,7 @@
 
     @Test
     public void testFinalOfStaticField() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         mExprModel.addImport("UX", User.class.getCanonicalName(), null);
         FieldAccessExpr fieldAccess = parse(lb, "UX.innerStaticInstance.finalStaticField",
@@ -786,7 +831,7 @@
 
     @Test
     public void testFinalOfFinalStaticField() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         mExprModel.addImport("User", User.class.getCanonicalName(), null);
         FieldAccessExpr fieldAccess = parse(lb, "User.innerFinalStaticInstance.finalStaticField",
@@ -798,7 +843,7 @@
 
     @Test
     public void testLocationTracking() {
-        LayoutBinder lb = new MockLayoutBinder();
+        MockLayoutBinder lb = new MockLayoutBinder();
         mExprModel = lb.getModel();
         final String input = "a > 3 ? b : c";
         TernaryExpr ternaryExpr = parse(lb, input, TernaryExpr.class);
@@ -849,7 +894,7 @@
 //    TODO uncomment when we have inner static access
 //    @Test
 //    public void testFinalOfInnerStaticClass() {
-//        LayoutBinder lb = new MockLayoutBinder();
+//        MockLayoutBinder lb = new MockLayoutBinder();
 //        mExprModel = lb.getModel();
 //        mExprModel.addImport("User", User.class.getCanonicalName());
 //        FieldAccessExpr fieldAccess = parse(lb, "User.InnerStaticClass.finalStaticField", FieldAccessExpr.class);
@@ -884,7 +929,9 @@
 
     private void assertExactMatch(List<Expr> iterable, Expr... exprs) {
         int i = 0;
-        String log = Arrays.toString(iterable.toArray());
+        String listLog = Arrays.toString(iterable.toArray());
+        String itemsLog = Arrays.toString(exprs);
+        String log = "list: " + listLog + "\nitems: " + itemsLog;
         log("list", iterable);
         for (Expr expr : exprs) {
             assertTrue((i++) + ":must contain " + expr.getUniqueKey() + "\n" + log,
@@ -892,7 +939,7 @@
         }
         i = 0;
         for (Expr expr : iterable) {
-            assertTrue((i++) + ":must be expected " + expr.getUniqueKey(),
+            assertTrue((i++) + ":must be expected " + expr.getUniqueKey() + "\n" + log,
                     ArrayUtils.contains(exprs, expr));
         }
     }
diff --git a/compiler/src/test/java/android/databinding/tool/reflection/java/JavaAnalyzer.java b/compiler/src/test/java/android/databinding/tool/reflection/java/JavaAnalyzer.java
index dea092b..ee2b0e5 100644
--- a/compiler/src/test/java/android/databinding/tool/reflection/java/JavaAnalyzer.java
+++ b/compiler/src/test/java/android/databinding/tool/reflection/java/JavaAnalyzer.java
@@ -13,13 +13,19 @@
 
 package android.databinding.tool.reflection.java;
 
+import org.apache.commons.io.FileUtils;
+import org.apache.commons.io.IOUtils;
+import org.apache.commons.lang3.StringUtils;
+
 import android.databinding.tool.reflection.ModelAnalyzer;
 import android.databinding.tool.reflection.ModelClass;
 import android.databinding.tool.reflection.SdkUtil;
 import android.databinding.tool.reflection.TypeUtil;
 import android.databinding.tool.util.L;
+import android.databinding.tool.util.Preconditions;
 
 import java.io.File;
+import java.io.IOException;
 import java.net.MalformedURLException;
 import java.net.URL;
 import java.net.URLClassLoader;
@@ -124,13 +130,40 @@
         }
     }
 
-    public static void initForTests() {
+    private static String loadAndroidHome() {
         Map<String, String> env = System.getenv();
         for (Map.Entry<String, String> entry : env.entrySet()) {
             L.d("%s %s", entry.getKey(), entry.getValue());
         }
-        String androidHome = env.get("ANDROID_HOME");
-        if (androidHome == null) {
+        if(env.containsKey("ANDROID_HOME")) {
+            return env.get("ANDROID_HOME");
+        }
+        // check for local.properties file
+        File folder = new File(".").getAbsoluteFile();
+        while (folder != null && folder.exists()) {
+            File f = new File(folder, "local.properties");
+            if (f.exists() && f.canRead()) {
+                try {
+                    for (String line : FileUtils.readLines(f)) {
+                        String[] keyValue = StringUtils.split(line, '=');
+                        if (keyValue.length == 2) {
+                            String key = keyValue[0].trim();
+                            if (key.equals("sdk.dir")) {
+                                return keyValue[1].trim();
+                            }
+                        }
+                    }
+                } catch (IOException ignored) {}
+            }
+            folder = folder.getParentFile();
+        }
+
+        return null;
+    }
+
+    public static void initForTests() {
+        String androidHome = loadAndroidHome();
+        if (StringUtils.isEmpty(androidHome) || !new File(androidHome).exists()) {
             throw new IllegalStateException(
                     "you need to have ANDROID_HOME set in your environment"
                             + " to run compiler tests");
diff --git a/integration-tests/TestApp/app/src/androidTestApi7/java/android/databinding/testapp/UnnecessaryCalculationTest.java b/integration-tests/TestApp/app/src/androidTestApi7/java/android/databinding/testapp/UnnecessaryCalculationTest.java
new file mode 100644
index 0000000..986156c
--- /dev/null
+++ b/integration-tests/TestApp/app/src/androidTestApi7/java/android/databinding/testapp/UnnecessaryCalculationTest.java
@@ -0,0 +1,74 @@
+/*
+ * Copyright (C) 2015 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package android.databinding.testapp;
+
+import android.databinding.testapp.databinding.UnnecessaryCalculationBinding;
+import android.databinding.testapp.vo.BasicObject;
+import android.support.annotation.UiThread;
+import android.test.UiThreadTest;
+
+import java.util.concurrent.atomic.AtomicInteger;
+
+public class UnnecessaryCalculationTest extends BaseDataBinderTest<UnnecessaryCalculationBinding> {
+
+    public UnnecessaryCalculationTest() {
+        super(UnnecessaryCalculationBinding.class);
+    }
+
+    @Override
+    protected void setUp() throws Exception {
+        super.setUp();
+        initBinder();
+    }
+
+    @UiThreadTest
+    public void testDontSetUnnecessaryFlags() {
+        BasicObjWithCounter obja = new BasicObjWithCounter();
+        BasicObjWithCounter objb = new BasicObjWithCounter();
+        BasicObjWithCounter objc = new BasicObjWithCounter();
+        mBinder.setObja(obja);
+        mBinder.setObjb(objb);
+        mBinder.setObjc(objc);
+        mBinder.setA(true);
+        mBinder.setB(true);
+        mBinder.setC(false);
+        mBinder.executePendingBindings();
+        assertEquals("true", mBinder.textView.getText().toString());
+        assertEquals("true", mBinder.textView2.getText().toString());
+        assertEquals(1, obja.counter);
+        assertEquals(1, objb.counter);
+        assertEquals(0, objc.counter);
+        obja = new BasicObjWithCounter();
+        mBinder.setObja(obja);
+        mBinder.executePendingBindings();
+        assertEquals("true", mBinder.textView.getText().toString());
+        assertEquals("true", mBinder.textView2.getText().toString());
+        assertEquals(1, obja.counter);
+        assertEquals(1, objb.counter);
+        assertEquals(0, objc.counter);
+    }
+
+    private static class BasicObjWithCounter extends BasicObject {
+        int counter = 0;
+
+        @Override
+        public String boolMethod(boolean value) {
+            counter ++;
+            return super.boolMethod(value);
+        }
+    }
+
+}
diff --git a/integration-tests/TestApp/app/src/main/java/android/databinding/testapp/vo/BasicObject.java b/integration-tests/TestApp/app/src/main/java/android/databinding/testapp/vo/BasicObject.java
index 450f7fb..4ec76c5 100644
--- a/integration-tests/TestApp/app/src/main/java/android/databinding/testapp/vo/BasicObject.java
+++ b/integration-tests/TestApp/app/src/main/java/android/databinding/testapp/vo/BasicObject.java
@@ -42,4 +42,8 @@
         this.mField2 = field2;
         notifyPropertyChanged(BR.field1);
     }
+
+    public String boolMethod(boolean value) {
+        return value ? "true" : "false";
+    }
 }
diff --git a/integration-tests/TestApp/app/src/main/res/layout/unnecessary_calculation.xml b/integration-tests/TestApp/app/src/main/res/layout/unnecessary_calculation.xml
new file mode 100644
index 0000000..0410189
--- /dev/null
+++ b/integration-tests/TestApp/app/src/main/res/layout/unnecessary_calculation.xml
@@ -0,0 +1,39 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!--
+  ~ Copyright (C) 2015 The Android Open Source Project
+  ~ Licensed under the Apache License, Version 2.0 (the "License");
+  ~ you may not use this file except in compliance with the License.
+  ~ You may obtain a copy of the License at
+  ~      http://www.apache.org/licenses/LICENSE-2.0
+  ~ Unless required by applicable law or agreed to in writing, software
+  ~ distributed under the License is distributed on an "AS IS" BASIS,
+  ~ WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  ~ See the License for the specific language governing permissions and
+  ~ limitations under the License.
+  -->
+
+<layout xmlns:android="http://schemas.android.com/apk/res/android">
+    <data>
+        <variable name="obja" type="android.databinding.testapp.vo.BasicObject"/>
+        <variable name="objb" type="android.databinding.testapp.vo.BasicObject"/>
+        <variable name="objc" type="android.databinding.testapp.vo.BasicObject"/>
+        <variable name="a" type="boolean"/>
+        <variable name="b" type="boolean"/>
+        <variable name="c" type="boolean"/>
+    </data>
+    <LinearLayout
+            android:orientation="vertical"
+            android:layout_width="match_parent"
+            android:layout_height="match_parent">
+        <TextView
+                android:id="@+id/textView"
+                android:text="@{obja.boolMethod(a)}"
+                android:layout_width="wrap_content"
+                android:layout_height="wrap_content"/>
+        <android.databinding.testapp.view.MyTextView
+                android:id="@+id/textView2"
+                android:text="@{a ? objb.boolMethod(b) : objc.boolMethod(c)}"
+                android:layout_width="wrap_content"
+                android:layout_height="wrap_content"/>
+    </LinearLayout>
+</layout>
\ No newline at end of file