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It doesn't seem to record any damage reduction in the stats sheet, nor record it anywhere else.
But testing with lava damage (which is 80):
+31 Defense (Armor)
+Damage Reduction Accessory (1.37 Item level, 5.5 legendary damage reduction) is 6.87%
80-31=49
Take 49 after defense calculation and add in 6.87% DMG Reduction (3.3663) which is 45.6337.
Comes out to be 45 damage rounded down, which was the exact damage taken in this case.
This is just a small test and I think that it doesn't report anywhere even though it still seems to calculate it.
Anyone replicate this?