diff --git a/modules/field/field.info.inc b/modules/field/field.info.inc
index c3b29573f856c48453cae86ded2fe8fc884a33a4..f435d99a6357d981e3d4e5a77e34275880a590a4 100644
--- a/modules/field/field.info.inc
+++ b/modules/field/field.info.inc
@@ -24,8 +24,6 @@
  * are affected.
  */
 function field_info_cache_clear() {
-  drupal_static_reset('field_view_mode_settings');
-
   // @todo: Remove this when field_attach_*_bundle() bundle management
   // functions are moved to the entity API.
   entity_info_cache_clear();
@@ -275,7 +273,7 @@ function _field_info_prepare_field($field) {
  * Prepares an instance definition for the current run-time context.
  *
  * Since the instance was last saved or updated, a number of things might have
- * changed: widgets or formatters disabled, new settings expected, new view
+ * changed: widgets or formatters disabled, new settings expected, new build
  * modes added...
  *
  * @param $instance
@@ -303,21 +301,16 @@ function _field_info_prepare_instance($instance, $field) {
     $instance['display'][$view_mode] = _field_info_prepare_instance_display($field, $display);
   }
 
-  // Fallback to 'hidden' for view modes configured to use custom display
-  // settings, and for which the instance has no explicit settings.
+  // Fallback to 'hidden' for unspecified view modes.
   $entity_info = entity_get_info($instance['entity_type']);
-  $view_modes = array_merge(array('default'), array_keys($entity_info['view modes']));
-  $view_mode_settings = field_view_mode_settings($instance['entity_type'], $instance['bundle']);
-  foreach ($view_modes as $view_mode) {
-    if ($view_mode == 'default' || !empty($view_mode_settings[$view_mode]['custom_settings'])) {
-      if (!isset($instance['display'][$view_mode])) {
-        $instance['display'][$view_mode] = array(
-          'type' => 'hidden',
-          'label' => 'above',
-          'settings' => array(),
-          'weight' => 0,
-        );
-      }
+  foreach ($entity_info['view modes'] as $view_mode => $info) {
+    if (!isset($instance['display'][$view_mode])) {
+      $instance['display'][$view_mode] = array(
+        'type' => 'hidden',
+        'label' => 'above',
+        'settings' => array(),
+        'weight' => 0,
+      );
     }
   }
 
diff --git a/modules/field/field.module b/modules/field/field.module
index d3545d911077873594e3bab213ddfb4c803afeb1..823b0f24c010f94576bb34dad9f9c5c71cc5b5f5 100644
--- a/modules/field/field.module
+++ b/modules/field/field.module
@@ -369,7 +369,7 @@ function _field_sort_items_value_helper($a, $b) {
  *       'extra_field_2' => ...
  *     ),
  *   ),
- * );
+ * ),
  * @endcode
  *
  * @param $entity_type
@@ -387,8 +387,8 @@ function field_bundle_settings($entity_type, $bundle, $settings = NULL) {
 
   if (isset($settings)) {
     $stored_settings[$entity_type][$bundle] = $settings;
-
     variable_set('field_bundle_settings', $stored_settings);
+    drupal_static_reset('field_view_mode_settings');
     field_info_cache_clear();
   }
   else {
@@ -397,10 +397,6 @@ function field_bundle_settings($entity_type, $bundle, $settings = NULL) {
       'view_modes' => array(),
       'extra_fields' => array(),
     );
-    $settings['extra_fields'] += array(
-      'form' => array(),
-      'display' => array(),
-    );
 
     return $settings;
   }
diff --git a/modules/field_ui/field_ui.admin.inc b/modules/field_ui/field_ui.admin.inc
index c88a51251d05725fb02c9dc4d27f961a2492a9f2..27ff1e03ad69617335a5900c9f647f6ee8a9640c 100644
--- a/modules/field_ui/field_ui.admin.inc
+++ b/modules/field_ui/field_ui.admin.inc
@@ -1267,23 +1267,19 @@ function field_ui_display_overview_form_submit($form, &$form_state) {
 
   // Save data for 'regular' fields.
   foreach ($form['#fields'] as $field_name) {
-    // Retrieve the stored instance settings to merge with the incoming values.
-    $instance = field_read_instance($entity_type, $field_name, $bundle);
+    $instance = field_info_instance($entity_type, $field_name, $bundle);
     $values = $form_values['fields'][$field_name];
     // Get formatter settings. They lie either directly in submitted form
     // values (if the whole form was submitted while some formatter
     // settings were being edited), or have been persisted in
     // $form_state.
-    $settings = array();
+    $settings = $instance['display'][$view_mode]['settings'];
     if (isset($values['settings_edit_form']['settings'])) {
       $settings = $values['settings_edit_form']['settings'];
     }
     elseif (isset($form_state['formatter_settings'][$field_name])) {
       $settings = $form_state['formatter_settings'][$field_name];
     }
-    elseif (isset($instance['display'][$view_mode]['settings'])) {
-      $settings = $instance['display'][$view_mode]['settings'];
-    }
 
     // Only save settings actually used by the selected formatter.
     $default_settings = field_info_formatter_settings($values['type']);
@@ -1315,14 +1311,10 @@ function field_ui_display_overview_form_submit($form, &$form_state) {
     foreach ($form_values['view_modes_custom'] as $view_mode_name => $value) {
       // Display a message for each view mode newly configured to use custom
       // settings.
-      $view_mode_settings = field_view_mode_settings($entity_type, $bundle);
-      if (!empty($value) && empty($view_mode_settings[$view_mode_name]['custom_settings'])) {
+      if (!empty($value) && empty($bundle_settings['view_modes'][$view_mode_name]['custom_settings'])) {
         $view_mode_label = $entity_info['view modes'][$view_mode_name]['label'];
         $path = _field_ui_bundle_admin_path($entity_type, $bundle) . "/display/$view_mode_name";
         drupal_set_message(t('The %view_mode mode now uses custom display settings. You might want to <a href="@url">configure them</a>.', array('%view_mode' => $view_mode_label, '@url' => url($path))));
-        // Initialize the newly customized view mode with the display settings
-        // from the default view mode.
-        _field_ui_add_default_view_mode_settings($entity_type, $bundle, $view_mode_name, $bundle_settings);
       }
       $bundle_settings['view_modes'][$view_mode_name]['custom_settings'] = !empty($value);
     }
@@ -1334,50 +1326,6 @@ function field_ui_display_overview_form_submit($form, &$form_state) {
   drupal_set_message(t('Your settings have been saved.'));
 }
 
-/**
- * Helper function for field_ui_display_overview_form_submit().
- *
- * When an administrator decides to use custom display settings for a view mode,
- * that view mode needs to be initialized with the display settings for the
- * 'default' view mode, which it was previously using. This helper function
- * adds the new custom display settings to this bundle's instances, and saves
- * them. It also modifies the passed-in $settings array, which the caller can
- * then save using field_bundle_settings().
- *
- * @see field_bundle_settings()
- *
- * @param $entity_type
- *   The bundle's entity type.
- * @param $bundle
- *   The bundle whose view mode is being customized.
- * @param $view_mode
- *   The view mode that the administrator has set to use custom settings.
- * @param $settings
- *   An associative array of bundle settings, as expected by
- *   field_bundle_settings().
- */
-function _field_ui_add_default_view_mode_settings($entity_type, $bundle, $view_mode, &$settings) {
-  // Update display settings for field instances.
-  $instances = field_read_instances(array('entity_type' => $entity_type, 'bundle' => $bundle));
-  foreach ($instances as $instance) {
-    // If this field instance has display settings defined for this view mode,
-    // respect those settings.
-    if (!isset($instance['display'][$view_mode])) {
-      // The instance doesn't specify anything for this view mode, so use the
-      // default display settings.
-      $instance['display'][$view_mode] = $instance['display']['default'];
-      field_update_instance($instance);
-    }
-  }
-
-  // Update display settings for 'extra fields'.
-  foreach (array_keys($settings['extra_fields']['display']) as $name) {
-    if (!isset($settings['extra_fields']['display'][$name][$view_mode])) {
-      $settings['extra_fields']['display'][$name][$view_mode] = $settings['extra_fields']['display'][$name]['default'];
-    }
-  }
-}
-
 /**
  * Return an array of field_type options.
  */
@@ -1589,24 +1537,17 @@ function field_ui_field_settings_form_submit($form, &$form_state) {
  * Menu callback; select a widget for the field.
  */
 function field_ui_widget_type_form($form, &$form_state, $instance) {
-  drupal_set_title($instance['label']);
-
   $bundle = $instance['bundle'];
   $entity_type = $instance['entity_type'];
-  $field_name = $instance['field_name'];
+  $field = field_info_field($instance['field_name']);
+
+  drupal_set_title($instance['label']);
 
-  $field = field_info_field($field_name);
   $field_type = field_info_field_types($field['type']);
   $widget_type = field_info_widget_types($instance['widget']['type']);
   $bundles = field_info_bundles();
   $bundle_label = $bundles[$entity_type][$bundle]['label'];
 
-  $form = array(
-    '#bundle' => $bundle,
-    '#entity_type' => $entity_type,
-    '#field_name' => $field_name,
-  );
-
   $form['basic'] = array(
     '#type' => 'fieldset',
     '#title' => t('Change widget'),
@@ -1620,6 +1561,7 @@ function field_ui_widget_type_form($form, &$form_state, $instance) {
     '#description' => t('The type of form element you would like to present to the user when creating this field in the %type type.', array('%type' => $bundle_label)),
   );
 
+  $form['#instance'] = $instance;
   $form['actions'] = array('#type' => 'actions');
   $form['actions']['submit'] = array('#type' => 'submit', '#value' => t('Continue'));
 
@@ -1634,12 +1576,9 @@ function field_ui_widget_type_form($form, &$form_state, $instance) {
  */
 function field_ui_widget_type_form_submit($form, &$form_state) {
   $form_values = $form_state['values'];
-  $bundle = $form['#bundle'];
-  $entity_type = $form['#entity_type'];
-  $field_name = $form['#field_name'];
-
-  // Retrieve the stored instance settings to merge with the incoming values.
-  $instance = field_read_instance($entity_type, $field_name, $bundle);
+  $instance = $form['#instance'];
+  $bundle = $instance['bundle'];
+  $entity_type = $instance['entity_type'];
 
   // Set the right module information.
   $widget_type = field_info_widget_types($form_values['widget_type']);
@@ -1647,7 +1586,6 @@ function field_ui_widget_type_form_submit($form, &$form_state) {
 
   $instance['widget']['type'] = $form_values['widget_type'];
   $instance['widget']['module'] = $widget_module;
-
   try {
     field_update_instance($instance);
     drupal_set_message(t('Changed the widget for field %label.', array('%label' => $instance['label'])));
@@ -1974,8 +1912,8 @@ function field_ui_field_edit_form_submit($form, &$form_state) {
   field_default_submit(NULL, NULL, $field, $instance, LANGUAGE_NONE, $items, $form, $form_state);
   $instance['default_value'] = $items ? $items : NULL;
 
-  // Retrieve the stored instance settings to merge with the incoming values.
-  $instance_source = field_read_instance($instance['entity_type'], $instance['field_name'], $instance['bundle']);
+  // Update the instance settings.
+  $instance_source = field_info_instance($instance['entity_type'], $instance['field_name'], $instance['bundle']);
   $instance = array_merge($instance_source, $instance);
   field_update_instance($instance);
 
diff --git a/modules/field_ui/field_ui.test b/modules/field_ui/field_ui.test
index f1102488c5364b7db93d9da6745ba0a07748b816..43649df287518ed529bb7d271af2b3c2386e0a14 100644
--- a/modules/field_ui/field_ui.test
+++ b/modules/field_ui/field_ui.test
@@ -470,151 +470,4 @@ class FieldUIManageDisplayTestCase extends FieldUITestCase {
     $this->assertEqual($current_format, $format, t('The formatter was updated.'));
     $this->assertEqual($current_setting_value, $setting_value, t('The setting was updated.'));
   }
-
-  /**
-   * Test switching view modes to use custom or 'default' settings'.
-   */
-  function testViewModeCustom() {
-    // Create a field, and a node with some data for the field.
-    $edit = array(
-      'fields[_add_new_field][label]' => 'Test field',
-      'fields[_add_new_field][field_name]' => 'field_test',
-    );
-    $this->fieldUIAddNewField('admin/structure/types/manage/' . $this->hyphen_type, $edit);
-    $value = rand(1, 100);
-    $settings = array(
-      'type' => $this->type,
-      'field_test' => array(LANGUAGE_NONE => array(array('value' => $value))),
-    );
-    $node = $this->drupalCreateNode($settings);
-
-    // Gather expected output values with the various formatters.
-    $formatters = field_info_formatter_types();
-    $output = array(
-      'field_test_default' => $formatters['field_test_default']['settings']['test_formatter_setting'] . '|' . $value,
-      'field_test_with_prepare_view' => $formatters['field_test_with_prepare_view']['settings']['test_formatter_setting_additional'] . '|' . $value. '|' . ($value + 1),
-    );
-
-    // Check that the field is displayed with the default formatter in 'rss'
-    // mode (uses 'default'), and hidden in 'teaser' mode (uses custom settings).
-    $this->assertNodeViewText($node, 'rss', $output['field_test_default'], t("The field is displayed as expected in view modes that use 'default' settings."));
-    $this->assertNodeViewNoText($node, 'teaser', $value, t("The field is hidden in view modes that use custom settings."));
-
-    // Change fomatter for 'default' mode, check that the field is displayed
-    // accordingly in 'rss' mode.
-    $edit = array(
-      'fields[field_test][type]' => 'field_test_with_prepare_view',
-    );
-    $this->drupalPost('admin/structure/types/manage/' . $this->hyphen_type . '/display', $edit, t('Save'));
-    $this->assertNodeViewText($node, 'rss', $output['field_test_with_prepare_view'], t("The field is displayed as expected in view modes that use 'default' settings."));
-
-    // Specialize the 'rss' mode, check that the field is displayed the same.
-    $edit = array(
-      "view_modes_custom[rss]" => TRUE,
-    );
-    $this->drupalPost('admin/structure/types/manage/' . $this->hyphen_type . '/display', $edit, t('Save'));
-    $this->assertNodeViewText($node, 'rss', $output['field_test_with_prepare_view'], t("The field is displayed as expected in newly specialized 'rss' mode."));
-
-    // Set the field to 'hidden' in the view mode, check that the field is
-    // hidden.
-    $edit = array(
-      'fields[field_test][type]' => 'hidden',
-    );
-    $this->drupalPost('admin/structure/types/manage/' . $this->hyphen_type . '/display/rss', $edit, t('Save'));
-    $this->assertNodeViewNoText($node, 'rss', $value, t("The field is hidden in 'rss' mode."));
-
-    // Set the view mode back to 'default', check that the field is displayed
-    // accordingly.
-    $edit = array(
-      "view_modes_custom[rss]" => FALSE,
-    );
-    $this->drupalPost('admin/structure/types/manage/' . $this->hyphen_type . '/display', $edit, t('Save'));
-    $this->assertNodeViewText($node, 'rss', $output['field_test_with_prepare_view'], t("The field is displayed as expected when 'rss' mode is set back to 'default' settings."));
-
-    // Specialize the view mode again.
-    $edit = array(
-      "view_modes_custom[rss]" => TRUE,
-    );
-    $this->drupalPost('admin/structure/types/manage/' . $this->hyphen_type . '/display', $edit, t('Save'));
-    // Check that the previous settings for the view mode have been kept.
-    $this->assertNodeViewNoText($node, 'rss', $value, t("The previous settings are kept when 'rss' mode is specialized again."));
-  }
-
-  /**
-   * Pass if the text is found in the rendered node in a given view mode.
-   *
-   * @param $node
-   *   The node.
-   * @param $view_mode
-   *   The view mode in which the node should be displayed.
-   * @param $text
-   *   Plain text to look for.
-   * @param $message
-   *   Message to display.
-   *
-   * @return
-   *   TRUE on pass, FALSE on fail.
-   */
-  function assertNodeViewText($node, $view_mode, $text, $message) {
-    return $this->assertNodeViewTextHelper($node, $view_mode, $text, $message, FALSE);
-  }
-
-  /**
-   * Pass if the text is node found in the rendered node in a given view mode.
-   *
-   * @param $node
-   *   The node.
-   * @param $view_mode
-   *   The view mode in which the node should be displayed.
-   * @param $text
-   *   Plain text to look for.
-   * @param $message
-   *   Message to display.
-   * @return
-   *   TRUE on pass, FALSE on fail.
-   */
-  function assertNodeViewNoText($node, $view_mode, $text, $message) {
-    return $this->assertNodeViewTextHelper($node, $view_mode, $text, $message, TRUE);
-  }
-
-  /**
-   * Helper for assertNodeViewText and assertNodeViewNoText.
-   *
-   * @param $node
-   *   The node.
-   * @param $view_mode
-   *   The view mode in which the node should be displayed.
-   * @param $text
-   *   Plain text to look for.
-   * @param $message
-   *   Message to display.
-   * @param $not_exists
-   *   TRUE if this text should not exist, FALSE if it should.
-   *
-   * @return
-   *   TRUE on pass, FALSE on fail.
-   */
-  function assertNodeViewTextHelper($node, $view_mode, $text, $message, $not_exists) {
-    // Make sure caches on the tester side are refreshed after changes
-    // submitted on the tested side.
-    field_info_cache_clear();
-
-    // Save current content so that we can restore it when we're done.
-    $old_content = $this->drupalGetContent();
-
-    // Render a cloned node, so that we do not alter the original.
-    $clone = clone $node;
-    $output = drupal_render(node_view($clone, $view_mode));
-    $this->verbose(t('Rendered node - view mode: @view_mode', array('@view_mode' => $view_mode)) . '<hr />'. $output);
-
-    // Assign content so that DrupalWebTestCase functions can be used.
-    $this->drupalSetContent($output);
-    $method = ($not_exists ? 'assertNoText' : 'assertText');
-    $return = $this->{$method}((string) $text, $message);
-
-    // Restore previous content.
-    $this->drupalSetContent($old_content);
-
-    return $return;
-  }
 }