Starbucks records asset retirement obligations (ARO) for leasehold improvements that they are contractually obligated to remove at the end of the lease. What summary journal entries did Starbucks make to record changes to the ARO asset (included in property, plant, and equipment) and the ARO liability (included in other long-term liabilities) in fiscal 2019? Assume that no AROs were settled during fiscal 2019 and that the only new ARO liability was recognized on September 29, 2019 for $8.0M.

Asset Retirement Obligations We recognize a liability for the fair value of required asset retirement obligations (ARO) when such obligations are incurred. Our AROs are primarily associated with leasehold improvements, which, at the end of a lease, we are contractually obligated to remove in order to comply with the lease agreement. At the inception of a lease with such conditions, we record an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. We estimate the liability using a number of assumptions, including store closing costs, cost inflation rates and discount rates, and accrete the liability to its projected future value over time. The capitalized asset is depreciated using the same depreciation convention as leasehold improvement assets. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as a gain or loss in store operating expense on our consolidated statements of earnings. As of September 29, 2019 and September 30, 2018, our net ARO assets included in property, plant and equipment were $23.5 million and $19.1 million, respectively, and our net ARO liabilities included in other long-term liabilities were $95.5 million and $82.4 million, respectively