What does the arrow operator, ‘->’, do in Java?

While hunting through some code I came across the arrow operator, what exactly does it do? I thought Java did not have an arrow operator.

return (Collection<Car>) CollectionUtils.select(listOfCars, (arg0) -> {
        return Car.SEDAN == ((Car)arg0).getStyle();
});

Details: Java 6, Apache Commons Collection, IntelliJ 12

Update/Answer: It turns out that IntelliJ 12 supports Java 8, which supports lambdas, and is “folding” Predicates and displaying them as lambdas. Below is the “un-folded” code.

return (Collection<Car>) CollectionUtils.select(listOfCars, new Predicate() {
    public boolean evaluate(Object arg0) {
        return Car.SEDAN == ((Car)arg0).getStyle();
    }
});