Q: iPad Air 16GB capacity

I bought the new iPad Air 16 GB.  But in iTunes it shows it at only 12.85 GB...  This seems much lower than the typical 14 some GB of space.  In face, it's almost 25% less than 16 GB.

I'm aware that the formatted size will be less than 16 GB, and that the iOS does take space, etc.  But, from 16 GB all the way down to 12.85?  That seems pretty crazy.

Does anyone else have a higher number?  Why so low this time around?  It seems older iPads had more useable space.