We estimate approximately 55-60% of our 2021 net sales were for repair and replacement directly related to municipal water infrastructure spending, approximately 30-35% were related to residential construction activity and less than 10% were related to natural gas utilities spending.

caused supply chain disruption that has resulted in higher costs in the manufacture of our products. We expect these conditions to persist in the near term and may worsen until the pandemic abates.

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below.

21.0 % Adjustments to reconcile to the effective tax rate: State income taxes, net of federal benefit

SG&A decreased $2.3 million to $12.6 million in the three months ended June 30, 2022 as compared with $14.9 million in the three months ended June 30, 2021 primarily as a result of decreased personnel-related expenses and outside services.

Nine Months Ended June 30, 2022 Compared to Nine Months Ended June 30, 2021

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below.

% 21.0 % Adjustments to reconcile to the effective tax rate: State income taxes, net of federal benefit

We repurchased $25.0 million of our outstanding common stock during the nine months ended June 30, 2022 and had $110.0 million remaining of our share repurchase authorization.

We use letters of credit and surety bonds in the ordinary course of business to ensure the performance of contractual obligations. At June 30, 2022, we had $14.1 million of letters of credit and $33.1 million of surety bonds outstanding.

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