diff -r 689edb64e41c -r 6a6a8a9860a4 src/share/classes/com/sun/tools/javac/comp/LambdaToMethod.java
--- a/src/share/classes/com/sun/tools/javac/comp/LambdaToMethod.java	Fri Apr 04 18:36:16 2014 -0700
+++ b/src/share/classes/com/sun/tools/javac/comp/LambdaToMethod.java	Thu Apr 10 11:24:26 2014 -0700
@@ -1895,11 +1895,11 @@
                         };
                         break;
                     case LOCAL_VAR:
-                        ret = new VarSymbol(FINAL, name, types.erasure(sym.type), translatedSym);
+                        ret = new VarSymbol(sym.flags() & FINAL, name, types.erasure(sym.type), translatedSym);
                         ((VarSymbol) ret).pos = ((VarSymbol) sym).pos;
                         break;
                     case PARAM:
-                        ret = new VarSymbol(FINAL | PARAMETER, name, types.erasure(sym.type), translatedSym);
+                        ret = new VarSymbol((sym.flags() & FINAL) | PARAMETER, name, types.erasure(sym.type), translatedSym);
                         ((VarSymbol) ret).pos = ((VarSymbol) sym).pos;
                         break;
                     default: