The references themselves are passed by value.
From Java How to Program, 4th Edition by Deitel & Deitel: (pg. 329)
Unlike other languages, Java does not allow the programmer to choose whether to pass
each argument by value or by reference. Primitive data type variables are always passed
by value. Objects are not passed to methods; rather, references to objects are passed to
methods. The references themselves are passed by value—a copy of a reference is passed
to a method. When a method receives a reference to an object, the method can manipulate
the object directly.
Used this book when learning Java in college. Brilliant reference.
Here's a good article explaining it.
http://www.javaworld.com/javaworld/javaqa/2000-05/03-qa-0526-pass.html
