Within; a spike (stem) and three buds which will break out and then bloom over time.

Not all sheaths (Cattleyas) produce buds right away; some dry out and seem to be dead for months... and than one day; boom, they pop... Thus, a dead-looking sheath (pod) should never be trimmed away, as that Cattleya bulb will never produce a flower as long as it lives... The whole trick to this is to leave the plant alone as it would be in the wild... with the exception of watering/feeding it, unless you live in a jungle where the orchid grows wild and then nature takes care of it all.