--- a/src/http/ngx_http_core_module.c
+++ b/src/http/ngx_http_core_module.c
@@ -789,11 +789,7 @@ ngx_http_handler(ngx_http_request_t *r)
     if (!r->internal) {
         switch (r->headers_in.connection_type) {
         case 0:
-            if (r->http_version > NGX_HTTP_VERSION_10) {
-                r->keepalive = 1;
-            } else {
-                r->keepalive = 0;
-            }
+            r->keepalive = (r->http_version > NGX_HTTP_VERSION_10);
             break;
 
         case NGX_HTTP_CONNECTION_CLOSE:
@@ -805,13 +801,7 @@ ngx_http_handler(ngx_http_request_t *r)
             break;
         }
 
-        if (r->headers_in.content_length_n > 0) {
-            r->lingering_close = 1;
-
-        } else {
-            r->lingering_close = 0;
-        }
-
+        r->lingering_close = (r->headers_in.content_length_n > 0);
         r->phase_handler = 0;
 
     } else {
@@ -3000,6 +2990,7 @@ ngx_http_core_merge_srv_conf(ngx_conf_t 
     ngx_http_core_srv_conf_t *prev = parent;
     ngx_http_core_srv_conf_t *conf = child;
 
+    ngx_str_t                name;
     ngx_http_server_name_t  *sn;
 
     /* TODO: it does not merge, it inits only */
@@ -3031,14 +3022,9 @@ ngx_http_core_merge_srv_conf(ngx_conf_t 
     ngx_conf_merge_value(conf->underscores_in_headers,
                               prev->underscores_in_headers, 0);
 
-    if (conf->server_name.data == NULL) {
-        ngx_str_set(&conf->server_name, "");
-
+    if (conf->server_names.nelts == 0) {
+        /* the array has 4 empty preallocated elements, so push can not fail */
         sn = ngx_array_push(&conf->server_names);
-        if (sn == NULL) {
-            return NGX_CONF_ERROR;
-        }
-
 #if (NGX_PCRE)
         sn->regex = NULL;
 #endif
@@ -3046,6 +3032,27 @@ ngx_http_core_merge_srv_conf(ngx_conf_t 
         ngx_str_set(&sn->name, "");
     }
 
+    sn = conf->server_names.elts;
+    name = sn[0].name;
+
+#if (NGX_PCRE)
+    if (sn->regex) {
+        name.len++;
+        name.data--;
+    } else
+#endif
+
+    if (name.data[0] == '.') {
+        name.len--;
+        name.data++;
+    }
+
+    conf->server_name.len = name.len;
+    conf->server_name.data = ngx_pstrdup(cf->pool, &name);
+    if (conf->server_name.data == NULL) {
+        return NGX_CONF_ERROR;
+    }
+
     return NGX_CONF_OK;
 }
 
@@ -3635,29 +3642,12 @@ ngx_http_core_server_name(ngx_conf_t *cf
     ngx_http_core_srv_conf_t *cscf = conf;
 
     u_char                   ch;
-    ngx_str_t               *value, name;
+    ngx_str_t               *value;
     ngx_uint_t               i;
     ngx_http_server_name_t  *sn;
 
     value = cf->args->elts;
 
-    ch = value[1].data[0];
-
-    if (cscf->server_name.data == NULL) {
-        name = value[1];
-
-        if (ch == '.') {
-            name.len--;
-            name.data++;
-        }
-
-        cscf->server_name.len = name.len;
-        cscf->server_name.data = ngx_pstrdup(cf->pool, &name);
-        if (cscf->server_name.data == NULL) {
-            return NGX_CONF_ERROR;
-        }
-    }
-
     for (i = 1; i < cf->args->nelts; i++) {
 
         ch = value[i].data[0];
@@ -3692,7 +3682,13 @@ ngx_http_core_server_name(ngx_conf_t *cf
         sn->regex = NULL;
 #endif
         sn->server = cscf;
-        sn->name = value[i];
+
+        if (ngx_strcasecmp(value[i].data, (u_char *) "$hostname") == 0) {
+            sn->name = cf->cycle->hostname;
+
+        } else {
+            sn->name = value[i];
+        }
 
         if (value[i].data[0] != '~') {
             ngx_strlow(sn->name.data, sn->name.data, sn->name.len);