IPad capacity drop from iOS 7 to iOS 8

Hi,
I updated from iOS 7.1.2 to iOS 8 this evening on my wi-fi only 16GB iPad mini w/ retina display (model ME279LL/A). I noticed after the update that the available space on my iPad had dropped about 600MB. After connecting to iTunes further noticed that the capacity of my iPad dropped from 12.80GB to 11.74GB. What happened that I lost over 1GB of capacity?
I restored the iPad and recovered from my backup. Not sure what else could be causing this issue. 4.26GB seems like a lot of space to lose to formatting and whatnot.
Thanks!

From what I've been hearing, iOS 8 itself takes up about 4.5 GB of space. Apple of course figures you won't need space anymore since you'll just store everything in the cloud now... lol.

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