The retirement and post-employment benefit liability was also affected by differences between the payments made under other plans, the quarterly expense for these plans and other factors.
$88.4 millionas of the end of the third quarter 2013 compared to $94.3 millionas of year-end 2012. Debt increased $19.1 millionin the first quarter 2013 in order to fund the payment of the 2012 incentive compensation to employees in the first quarter 2013, other working capital items, capital expenditures and the dividend to shareholders. Debt then declined $25.0 millionin total during the second and third quarters of 2013 as a result of the net income generated in those quarters and changes in working capital items.
Outstanding short-term debt was
We were in compliance with all of our debt covenants as of the end of the third quarter 2013.
Shareholders' equity was
$437.3 millionas of the end of the third quarter 2013 compared to $415.0 millionas of year-end 2012. The primary cause for the increase in equity in the first nine months of 2013 was comprehensive income of $21.3 million. This increase to equity was partially offset by declared dividends of $4.9 millionin the first nine months of 2013. Equity was also affected by stock compensation expense, the exercise of stock options and other factors.
Prior Year Financial Position
Net cash used in operating activities was
$7.4 millionin the first nine months of 2012 as net income and the effects of depreciation were more than offset by the net change in working capital items, including increases in accounts receivable and inventory and a decrease in accounts payable and other liabilities and accrued items. In the third quarter 2012, cash provided from operations totaled $1.7 millionas the majority of the net growth in working capital occurred during the first half of 2012. Accounts receivable totaled $138.9 millionat the end of the third quarter 2012, an increase of $21.1 million, or 18%, from the balance of $117.8 millionat year-end 2011 as the DSO slowed to 43 days as of the end of the third quarter 2012. Inventories increased $24.2 million, or 13%, in the first nine months of 2012, largely due to the timing of production scheduling and to support future sales growth within Performance Alloys. Inventories of beryllium hydroxide also increased due to higher mining rates at our Utahoperation. The acquisition of AMC had a minor impact on the inventory growth in the first nine month of 2012. Other liabilities and accrued items declined $0.7 millionin the first nine months of 2012 as the payment of the 2011 incentive compensation expense to employees during the first quarter 2012 was largely offset by the movements in other items. The retirement and post-employment benefit balance was $6.7 millionlower at the end of the third quarter 2012 than year-end 2011 mainly due to the contribution to the domestic defined pension benefit plan of $10.1 millionoffset in part by the expense recorded for the various plans and other factors.