FULL PRODUCT VERSION :
java version "1.8.0_20"
Java(TM) SE Runtime Environment (build 1.8.0_20-b26)
Java HotSpot(TM) 64-Bit Server VM (build 25.20-b23, mixed mode)

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows [Version 6.1.7601]

A DESCRIPTION OF THE PROBLEM :
After updating to JDK 1.8.0 update 20 our build processes started to fail because javac was throwing an internal NullPointerException. 

The problem occurs when javac tries to infer U in calls to Stream.reduce(Object, BiFunction, BinaryOperator). 

This bug looks similar to bug JDK-8044546.


REGRESSION.  Last worked in version 8u5

ADDITIONAL REGRESSION INFORMATION: 
java version "1.8.0_05"
Java(TM) SE Runtime Environment (build 1.8.0_05-b13)
Java HotSpot(TM) 64-Bit Server VM (build 25.5-b02, mixed mode)

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
Simply compile the test case with javac.

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
javac should compile the test case without issue
ACTUAL -
javac terminates due to an internal exception

ERROR MESSAGES/STACK TRACES THAT OCCUR :
An exception has occurred in the compiler (1.8.0_20). Please file a bug at the Java Developer Connection (http://java.sun.com/webapps/bugreport)  after checking the Bug Parade for duplicates. Include your program and the following diagnostic in your report.  Thank you.
java.lang.NullPointerException
        at com.sun.tools.javac.code.Types.isConvertible(Types.java:290)
        at com.sun.tools.javac.comp.Check.assertConvertible(Check.java:922)
        at com.sun.tools.javac.comp.Check.checkMethod(Check.java:876)
        at com.sun.tools.javac.comp.Attr.checkMethod(Attr.java:3838)
        at com.sun.tools.javac.comp.Attr.checkIdInternal(Attr.java:3615)
        at com.sun.tools.javac.comp.Attr.checkMethodIdInternal(Attr.java:3522)
        at com.sun.tools.javac.comp.Attr.checkMethodId(Attr.java:3501)
        at com.sun.tools.javac.comp.Attr.checkId(Attr.java:3488)
        at com.sun.tools.javac.comp.Attr.visitSelect(Attr.java:3370)
        at com.sun.tools.javac.tree.JCTree$JCFieldAccess.accept(JCTree.java:1897)
        at com.sun.tools.javac.comp.Attr.attribTree(Attr.java:607)
        at com.sun.tools.javac.comp.Attr.visitApply(Attr.java:1843)
        at com.sun.tools.javac.tree.JCTree$JCMethodInvocation.accept(JCTree.java:1465)
        at com.sun.tools.javac.comp.Attr.attribTree(Attr.java:607)
        at com.sun.tools.javac.comp.Attr.visitReturn(Attr.java:1704)
        at com.sun.tools.javac.tree.JCTree$JCReturn.accept(JCTree.java:1384)
        at com.sun.tools.javac.comp.Attr.attribTree(Attr.java:607)
        at com.sun.tools.javac.comp.Attr.attribStat(Attr.java:676)
        at com.sun.tools.javac.comp.Attr.attribStats(Attr.java:692)
        at com.sun.tools.javac.comp.Attr.visitBlock(Attr.java:1142)
        at com.sun.tools.javac.tree.JCTree$JCBlock.accept(JCTree.java:909)
        at com.sun.tools.javac.comp.Attr.attribTree(Attr.java:607)
        at com.sun.tools.javac.comp.Attr.attribStat(Attr.java:676)
        at com.sun.tools.javac.comp.Attr.visitMethodDef(Attr.java:1035)
        at com.sun.tools.javac.tree.JCTree$JCMethodDecl.accept(JCTree.java:778)
        at com.sun.tools.javac.comp.Attr.attribTree(Attr.java:607)
        at com.sun.tools.javac.comp.Attr.attribStat(Attr.java:676)
        at com.sun.tools.javac.comp.Attr.attribClassBody(Attr.java:4342)
        at com.sun.tools.javac.comp.Attr.attribClass(Attr.java:4252)
        at com.sun.tools.javac.comp.Attr.attribClass(Attr.java:4181)
        at com.sun.tools.javac.comp.Attr.attrib(Attr.java:4156)
        at com.sun.tools.javac.main.JavaCompiler.attribute(JavaCompiler.java:1248)
        at com.sun.tools.javac.main.JavaCompiler.compile2(JavaCompiler.java:901)
        at com.sun.tools.javac.main.JavaCompiler.compile(JavaCompiler.java:860)
        at com.sun.tools.javac.main.Main.compile(Main.java:523)
        at com.sun.tools.javac.main.Main.compile(Main.java:381)
        at com.sun.tools.javac.main.Main.compile(Main.java:370)
        at com.sun.tools.javac.main.Main.compile(Main.java:361)
        at com.sun.tools.javac.Main.compile(Main.java:56)
        at com.sun.tools.javac.Main.main(Main.java:42)

REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
import java.util.function.*;
import java.util.stream.*;

final class LambdaCrash {
  public boolean test(final Stream<BooleanSupplier> stream) {
    return stream.reduce(false, (t, u) -> t || u.getAsBoolean(), (a, b) -> a || b);
  }
}
---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
To workaround this issue you can explicitly specify <U>:

import java.util.function.*;
import java.util.stream.*;

final class LambdaCrash {
  public boolean test(final Stream<BooleanSupplier> stream) {
    return stream.<Boolean>reduce(false, (t, u) -> t || u.getAsBoolean(), (a, b) -> a || b);
  }
}