Formatting refers to the indentation, alignment, and use of white space to lay out your program to increase its readability by others.
Consistency is the key to producing readable code. While many can argue to merits of 3 versus 4 spaces of indentation, placement of curly braces, etc., the real key is to adopt a formatting style and keep to it.
In the real-world, organizations adopting a standard for formatting increase programmer productivity by reducing variations and trivial decisions among teams of programmers. By following formatting standards, programmers do not need to individually decide on the relatively trivial matters of formatting. Instead, they can spend their time and energy on the harder problems of the program solution.