KLEMS (K-capital, L-labor, E-energy, M-materials, and S-purchased services) refers to broad categories of intermediate inputs that are consumed by industries in their production of goods and services.  The detailed estimates of intermediate inputs of an industry are classified into one of three cost categories—energy, materials, and purchased services; the labor cost category equals an industry’s compensation to labor from value added, and the capital cost category equals the industry’s gross operating surplus plus taxes on production and imports less subsidies.  For more information on KLEMS, please see the September 2005 Survey of Current Business (SCB) article at: http://www.bea.gov/scb/pdf/2005/09September/0905_Industry.pdf