Pathfinder Sustainable Practices dilema

I was wondering if the Sustainable Practices node from the Pathfinder ascendancy is working how i think it is. For example:

Let's say i have 10.000 evasion rating. That makes 3000 elemental damage reduction from what the node says. That would mean that if a monster hits me for 5.000 damage after elemental resistances, the actual hit will be 5.000 - 3.000 => 2.000 damage hit?

Anyone know if this is the actual behavior of the node?